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

Special report July. 2009/Issue 11 Electronic Information Industry: 邮发代号：80-799 Calls for Upgrade China's Foreign Trade 国内刊号：CN11-1020/F 国际刊号：ISSN0009-4498 and Reform Jiangxi Changhe Motors Co.,Ltd.

I. The introduction of Changhe Motors Established on Nov. 26, 1999, Jiangxi Changhe Motors Co.,Ltd. is located in Jingdezhen, Jiangxi prov- ince, the famous city of China. It was sanctioned by National Economic and Trade Committee, Changhe Air- craft Industries Group is the main sponsor. Jiangxi Changhe Motors Co., Ltd. (Changhe Motors) is one of the leading motor manufacturers, and the R&D and production base of small emission autos. The first microbus of China was manufactured here. Changhe Motors has 6000 employees, with the registered capital of RMB 410 million. It has three bases of finished car manufacturing, including Jingdezhen, Jiujiang and Hefei, one engine manufacturing base in Jiujiang, and a industrial park of auto parts production. With a production pattern of crossing over two prov- inces and three cities, the company has developed an annual production capacity of 300,000 finished cars and 150,000 auto engines. The company covers a wide business range of the series of mini cars, the design, development, manufac- ture, sales, aftersales services for economic vehicles, and the development, consultation and services of the relevant projects. The company adheres to the concept of “Striving for the mission of letting cars drive into the average families”. The company is devoted to the mission of boosting China’s auto industry, making great contribu- tions to the clients, shareholders and the society with the highest quality. The government leaders have shown great concerns to Changhe Motor’s development. Jiang Zemin, Li Peng, Wu Bangguo, Zeng Qinghong, Wu Guanzheng, Hui Liangyu, and some other national leaders, have visited the company, and given high praise to it. II. The main products By adhering to the concept of safety, environmental protection, and energy saving, Changhe Motors has kept developing new family cars. Since 1982, when the company produced the first mini lorry, up to now,

62 it has developed and introduced in new products to meet the market demand. It has produced mini lorries, mini buses, mini asloon cars, middle level saloon cars, etc. It has developed five platforms, and 8 major systems of a hundred kinds of vehicles, which are smoothly sold across the country. The first generation of leading products was named series of CH1010, which took quite considerable market shares in the domestic mini car market. It has made quite a good foundation for the development of the company. Former Premier Li Peng gave it a pretty name “locust”. The products of the second generation was called series of CH1018 system, with a development rate of over 40%, marking the most splendid period of the company, the sales and produc- tion have topped the domestic car industry for many consecu- tive years. The products of the third generation are named “Charles’s Wain” and “Ideal”.

Jiangxi Changhe Automobile Co., Ltd. Add: No.208 Xinchangdong Road, Jing- dezhen, Jiangxi 333002, P.R.China Contact Person: Zhou Zhenguang Tel: 86-798-8462884 Fax: 86-798-8462987 E-mail: [email protected] Web Site: www.changheauto.com

63 Lifestyle on stage Festival Croisements 2009 Théâtre ~ Fey- deau Beijing, Renyi Shiyan Xiao Juchang, May 20, 21, 22, 23 and 24 Hangzhou, Grand Theatre, Multimedia room, June 3 Shanghai, Duanjun Theatre, June 6 and 7 The Yi company, directed by Shao Sifan revives several plays by Georges Feydeau, the great French vaudeville playwright. In “How can understand you?….You are talking with your back to the light”, the Yi company offers a patchwork of playlets reflecting on universal themes such as childhood dreams, mar- riage, life as a couple and family, beneath the frenetically joyous surface of the farce. A young girl has to learn the piano to find a husband, a young man finds love in a book, a pregnant woman tortures her husband, a man is exasperated by his jealous wife……25 characters played by 6 comedians to sketch a gallery of cruel, funny portraits. Price: RMB 280/480/680/880/1080/1380 Tickets are available at 86-10-64177845 A Cooperative Production of Teatro La Fenice and NCPA Among all the dreamy beauties that Puccini has created with his whole heart, Madama Butterfly is the most poetic and vigor- ous character. It is well shown in Puccini’s concise outplay and his personal preference. Puccini grants the protagonist Cio-Cio-San with more love, sense and care. Especially in the respect of music, Madama Butterfly is more elegant and graceful. In the prelude of the symphony, a piece of urgent fugue, like an exquisite water-col- or picture, brings spectators into the splendid world of the harbor of Japan’s Nagasaki, all of which is the representation of Puccini’s magnificent inspiration. Madama Butterfly is also Puccini’s first opera which has an exotic sense. As what Puccini once emphasized, what attracted him most in this opera was that in it an atmosphere of death was everywhere. Since the beginning, this sense of death surrounds the whole play and the description of this sense is where the strong artistic appeal lies.

Shao Sifan is a young actor and director who graduated from the cours Florent and was awarded the best directing prize at the New Traditional Cross Talk Music Perfor- end of his studies for his directing work of “John & Mary” by mance-Bragging About Home Pascal Rambert. He regularly attends training workshops and has Artists: Nan Cheng Er Ge Time: June 10, 20:30 been a guest of Thomas Ostermeier’s workshop at the Beijing Uni- Price: On door 60rmb, In Advance 50rmb, VIP 120rmb, versity Theatre Research Institute (directed by Lin Zhao Hua) and Family Pack 130 rmb (3 tickets) the Commedia Dell’ arte training course directed by Luis Jaime- Add: The Star Live, 3Floor, No.79, Hepingli Xijie, Cortez. Dongcheng District, Beijing Texts: Georges Feydeau Tel: 86-10-64255677 Adaptation and directing: Shao Sifan, assisted by Fabien de Chalvron Scenography: Shao Sifan, Ggislaine Querrien With: Fabien de Chalvron, Martin Douaire, Floriane Facchini, Ghostface Killah China Tour Aude Ollier, Shao Sifan, Hang Yin. The performance lasts 1h35. at Beijing Concert Artists: Ghostface Killah Time: June 13, 21:00 HOUSE NATION “Sparkling Night” Price: On door 250rmb, In Advance Artists: Kaskade(ultra records), yummy(house nation tokyo) 180rmb Time: June 5, 21:00 Add: The Star Live, 3 Floor, No.79, Price: In Advance RMB 80 Hepingli Xijie, Dongcheng District, Beijing Add: The Star Live, 3 Floor, No.79, Hepingli Xijie, Tel: 86-10-64255677 Dongcheng District, Beijing Tel: 86-10-64255677 German Music Night - Berlin Station Artists: Doro, Fotos, Torpedo Boyz, 1983, Wang Xiaokun Puccini’s Opera: Madama Butterfly Time: June 14, 21:00 Time: June 4-June 7, 2009 Venue: NCPA-Opera House Price: Sign up and get a free ticket. Starting on May 20th on Lifestyle

www.goethe.de/peking Award for Outstanding Mu- Add: The Star Live, 3Floor, No.79, sicianship, a Fellowship from Hepingli Xijie, Dongcheng District, the American Pianists As- Beijing sociation, the ArtsLink grant, Tel: 86-10-64255677 and the first prize at the Frinna Awerbuch International Piano Competition. French Theatre Encounters - The Execution Dr. Rachmanov began his studies at Moscow’s Gnesins of the Monstrous Judge School of Music, earning his Time: June 9-June 11, 2009 BM and MM degrees from Venue: TNT Theatre The Juilliard School and the Price: RMB 50/80/120/180 DMA from Manhattan School Ticket Package: RMB 130/170/230 of Music. His teachers include Tickets are available at 86-10-64177845 Nadia Reisenberg, Arkady A creation by the young French theatre director, Sarah Op- Aronov and Alexander Eydel- penheim, which fuses together for the first time popular Chinese man. A sought-after educator shadow puppet theatry with the more elitist Peking opera. and master class clinician, he has served on the faculties of Man- hattan School of Music, Chicago College of Performing Arts and Long Island Conservatory, SUNY. Since 2007 Dr. Rachmanov has Listen To Me, Please!-Melo- been a chair of the piano department at California State University drama at Northridge. Artists: Shakespeare’s Wild Sisters Program (subject to change) Group Beethoven 6 pieces of Variations in F Major Time: June 18, 19:30 Stravinsky Sonata Price: On door 120rmb, In Advance Schubert ‘Wanderer’ Fantasy D.760 110rmb, VIP 220rmb (limited 80 tickets) Add: The Star Live, 3Floor, No.79, Hep- ingli Xijie, Dongcheng District, Beijing Tel: 86-10-64255677 Listen To Me, Please! - Melodrama Artists: Shakespeare’s Wild Sisters Group Time: June 20, 14:30 Listen To Me, Please! - Melodrama Price: On door 120rmb, In Advance 110rmb, VIP 220rmb (limited 80 tickets) Artists:Shakespeare’s Wild Sisters Group Add: The Star Live, 3Floor, No.79, Hepingli Xijie, Time: June 19, 19:30 Dongcheng District, Beijing Price: On door 120rmb, In Advance 110rmb, VIP 220rmb Tel: 86-10-64255677 (limited 80 tickets) Add: The Star Live, 3Floor, No.79, Hepingli Xijie, Dongcheng District, Beijing Tel: 86-10-64255677 Listen To Me, Please! - Melodrama Artists: Shakespeare’s Wild Sisters Group Time: June 20, 19:30 Dmitry Rachmanov Piano Recital Price: On door 120rmb, In Advance 110rmb, VIP 220rmb(limited 80 tickets) Time: June 19, 2009 Add: The Star Live, 3Floor, No.79, Hepingli Xijie, Venue: Beijing Concert Hall Dongcheng District, Beijing Price: RMB 30/50/80/120/180/280 Tel: 86-10-64255677 Tickets are available at 86-10-64177845 Pianist Dmitry Rachmanov has concertised across conti- nents to great acclaim, appearing at venues such as London’s Barbican and South Bank Centres, Washington DC’s Kennedy Wang Zheng - June? Times Center and New York’s Carnegie Hall. Hailed as an “indisputable Concert musician” by the Brussels’ Le Soir and “suave and gifted pianist” Artists: Wang Zheng by the New York Times, his insightful musicianship have led Time: June 21, 20:00 him to explore large plateaus of repertoire such as the Beethoven, Price: On door 100rmb, In Advance Schubert or Scriabin sonatas cycles, as well as presenting recital 80rmb, Students 80rmb series on original fortepianos. A proponent of the Russian reper- Add: The Star Live, 3Floor, No.79, Hep- toire, Rachmanov’s all-Tchaikovsky, Rachmaninoff and Scriabin ingli Xijie, Dongcheng District, Beijing albums for Vista Vera and Master Musician's labels, along with Tel: 86-10-64255677 his Omniclassic Beethoven CD, received critical praise. His re- cital “The Art of the 19th Century Russian Character Piece” was noted by the New York Times for the “considerable color and Crossroads Festival French Touch ~ Yann focus” he brought to each work, and he gave the US premiere of Boris Pasternak’s Piano Sonata, broadcast nationwide by the Tiersen NPR. Beijing/Yugongyishan/June 19 and 20, 2009 Rachmanov’s festivals include Banff in Canada, Prussia Wuhan/Yuehu/June 21, 2009 Cove in England, Moulin d’Andé in France, Spoleto, Bard and Shanghai/Shanghai Concert Hall/June 23, 2009 the IKIF in the USA. His honors include the George Schick Acclaimed on his first visit to China in 2006, the multi- Lifestyle instrumentalist Yann Tiersen is characters of the play. The opera created three different musical back for a national tour images, that is, the irresolute and mentally changeable jester, the Yann Tiersen received a refined but frivolous, affectionate but easily changeable duke classical training from an early and the innocent, affectionate and poetically imaginative Gilda. age at the musical academies of Many selections of this opera have become world famous, of Rennes and Nantes. He studied which La donna e mobile (Women are fickle), with its relaxed the violin, the piano and the and lively rhythm and gorgeous tones, becomes a world popular art of directing. He gradually classic song. moved towards rock and began Parma Royal Opera House performing on local stages and recording background music Parma Royal Opera House was established in 1829, which for a number of plays and short was the most important legacy of Duchess Maria Lulchia and films. In 1995, he released his also the best representation of the blend of society and culture first album “La Valse des mon- of that period. As the Italian opera master Verdi’s hometown, stres” a mixture of both short the Opera House is tightly connected with Verdi’s whole life as films scores and accompani- well as his classic works. It holds Verdi Festival every autumn ments for plays. At the “Trans- and is called the Holy Land in the heart of Verdi fans. Parma musicales” in Rennes, in 1998, Royal Opera House has a long history an dpossesses a profound he showed his multi-instrumental skills, switching seamlessly performing tradition, all of which makes it become Italy’s cul- between piano, accordion, percussions and violin. His avant- tural hub. garde music cutting across musical genres with gay abandon. He Synopsis: rose to fame with his album “le Phare” (the Lighthouse) released the same year. It is a story that happens in the 16th century in Italy’s Matua. His next title “le Rue des cascades” was chosen by Eric The protagonist Rigoletto, ugly and hunchbacked, is a jester in Zonca for the end credits music of his film “la Vie rêvée des the palace of the Duke of Mantua. The Duke, young and hand- anges”. He hit the international stage in 1999 and performed in some, only takes pleasure from flirting with women, which Barcelona, Japan and Singapour. A year later, in London,he went evokes the courtiers’ discontentment. However, Rigoletto only on the stage for the first part of Juliet Greco’s concert. His album mocks at the courtiers’ wives and daughters’ misfortune and “L’absente” (music and lyrics) is a singular jewel with rather in- offends many people and finally gets the misfortune of losing novative tonalities which features vocals from Dominique A, his daughter. His daughter Gilda is innocent and beautiful. The Neil Hannon, Lisa Germano and Natacha Régnier. Duke disguises himself as a poor student and secretly chases At the same time, his soundtrack to jean-Pierre Jeunet’s film “ her and at last gets her love. Later, Rigoletto lures the Duke to Amelie” garnered him new fans and much acclaim. The success sleep in the hotel with a beauty and hires an assassin to kill him. of both film and soundtrack put him at the top of the charts for At dawn, he finds that it is the dying Gilda who has disguised weeks, selling 700 000 albums. herself as the Duke. In fact, the young girl, who loves the Duke After an extensive tour he recorded the original soundtrack though he does not really love her, knew the assassin plan and of Wolfgang Becker’s “Good bye Lenin” and released a CD with his willing to die for the Duke because of love. Shannon Wright. His latest album “Les Retrouvailles” features a number of High-profile guests vocalists both French and Anglophone alike: Drama: Don Juan jane Birkin, Dominique A , Miossec, Elizabeth Fraser,(from the Time: June 14-June 23, 2009 Cocteau twins) and Stuart Ashton Staples of Tindersticks. Venue: TNT Theatre “Tabarly” is the original soundtrack album of the documen- Price: RMB 50/80/120/180 tary film of the same name by Pierre Marcel (2008) commemo- Ticket Package: RMB 130/170/230 rating the 10th anniversary of Eric Tabarly’s death. Tickets are available at 86-10-64177845 Dom Juan (Dom Juan ou le Festin de pierre) is a French play by Molière, based on the legend of Don Juan. Molière’s char- Verdi’s Opera: Rigoletto acters Dom Juan and Sganarelle are the French counterpart to Time: J u n e 1 8 - J u n e 2 1 , 2 0 0 9 the Spanish Don Juan and Sancho. This play is the last part in Venue: NCPA-Opera House Molière’s hypocrisy trilogy, which also includes The School for Price: RMB 280/480/680 Wives and Tartuffe. It was first performed on February 15, 1665, /880/1080/1380 in the Palais-Royal, with Molière playing the role of Sganarelle. Tickets are available at 86- 10-64177845 A Cooperative Production of The Integration of Ear- Parma Royal Opera House and ly Summer Concert NCPA Artists: Mandala,Rui Rigoletto, created in 1851, Band,Red Zebra Another Mys- is one of Italian opera master tery Guests Verdi’s classics and, together Time: 20:30, June 24, with La Traviata and Trovatore, Price: On door 100rmb, In is called Verdi’s three classics in Advance 80rmb, VIP 120rmb his middle life of creation and (limited) has been famous for over one Add: The Star Live, 3Floor, century. Verdi strengthens the No.79, Hepingli Xijie, Dongcheng dramatic part of the play and with skillful musical techniques District, Beijing depicts deeply the rich mental changes and characterstics of the Tel: 86-10-64255677 Lifestyle

EU Extravaganza at Beijing’ Chaoyang Park

A taste of European culture was on offer in Chaoyang Park on May 23-24, as the EU Extravaganza showcase the highlights of the region’s music and cuisine. “The motto of the EU is: ‘United in Diversity’ and this event brings together all of our 27 member states—from Ireland on the north Atlantic seaboard to Cyprus on the shores of the middle east, from Finland in the arctic circle to Spain across the straits from Af- rica. From such different areas of Europe, with such different peoples, we can offer to the Chinese public, cultural diversity, variety of food and drink, and an incredible choice of musical talent”, said Serge Abou, EU Ambassador to China. “The EU Extravaganza aims to give the Chinese general public a taste of this diversity through the medium of culture and cuisine,” he added.

One of the event’s goals is to broaden knowledge of the EU among the Chinese public, letting them know that there is a lot more to the region than its larger, better known member states such as the UK, France, Germany, Italy and Spain; especially since its recent enlargements. “We are aiming to show the Chinese public the diversity of culture among the newer and smaller member states too. We want to show the Chinese people that Europe is much more than just the major nations which they may already be familiar with and to encour- age them to broaden their horizons on Europe in terms of travel, education and food and drink,” said Dr. Vitezslav Grepl, Ambassador to China of the Czech Republic, the current holders of the revolving EU presidency. “This festival comes at an opportune time for EU-China relations, where the two sides are determined to bring their strategic part- nership to new heights, with anumber of high-level visits as well as two summits scheduled for 2009, and a common will to face the global challenges of the financial crisis and climate change together,” said Abou. The Czechs are providing the event’s headline act, musical band Czechomor, whose music is said to exude a raw vitality as well as be rooted in the nations’s Bohemian and Moravian roots. And like the good party hosts they are, the Czechs are bringing a bottle or two, so their musical treat can be washed down with a variety of world famous Czech beers and a selection of Moravian wines. The event also featured a Hungarian string quartet, Quartet alla Unghareasca, Bulgarian pop singer Yordanka and piano soloist Mina Ivanova; Polish jazz outfits Istebna Regional group and the Jagodzinski Trio, and so on.

The 16th Asian Games Unveils 2010 Pictograms The 16th Asian Games (www.gz2010.cn/en), part of the worldwide Olympic movement and governed by the Olympic Council of Asia has unveiled its official Pictograms and logos of the Asian Games Culture Event as well as the Environment and Volunteers for the 16th Asian Games.

The Pictograms and logos of the Asian Games Culture Event as well as the Environment and Volunteers are important basic visual elements of the image and look of the Games. Taken together with the Games’ Em- blem and Mascots they constitute the Games Visual Identity. The Pictograms have various practical functions and serve as important carriers of the Games’ vision and the host country’s cul- ture. The Pictograms for Guangzhou 2010 were inspired by the Asian Games Flame - the 56 flames representing the Games’ 56 sports. The Logo of the Asian Games Culture Event, which involves elements of the Lingnan culture in terms of shape and color, is in- spired by facial makeup of the Guangdong Opera. The Logo for the Environment is a green leaf in the shape of a smile that irrevocably connects Man and Heaven. The Logo for the Asian Games Volunteers combines love and personal service. All the symbols - which are easy to be identified, remembered and used - embody the Games’ Vision of “Thrilling Games, Harmonious Asia” and an inspiring combination of the Lingnan culture and international design styles. The solicitation for the Pictograms and logos was launched in September 2008. In addition to its public solicitation, GAGOC invit- ed more than 10 well-known design institutions and advertising agencies throughout China to offer their Pictogram designs. GAGOC organized design review and evaluations prior to making additional design revisions. These symbols and the Games’ Vision, Emblem and Mascots will be used throughout the promotion, marketing and the Image & Look Project of the Guangzhou 2010 Asian Games. 2009 No.11/456

BI-WEEKly WATCH 8 Figure 9 Agriculture 10 Energy 11 Chemical 12 Steel 13 Auto 14 Light Industry 15 Textile 16 Electronics 17 Transportation 18 Science 19 Health 20 Finance 21 Investment

Special report 24 Electronic Information Industry: Calls for Upgrade Lowering the cost has been a major competition method in 27 the development of China’s electronic information industry. and Reform However, this development mode has been not as smart as before in recent two years. Long term development of China’s 25 Encounters & Responses Trade Protectionism industry should turn to technology innovation and opening of domestic demand. 27 An Overview of the Electronic Information Industry in 2008 28 Countryside, Rocky Road for Home Appliances

CITY 30 Huangshan, the Magical Mountain

Economy 34 China’s Export, Still Tough Road Ahead 35 IMF: More Funding, More Reforming

INVESTMENT INFO 38 Investment Projects in Western CHINA Mt. Huangshan is a magical mountain, it’s like a perfect 30 unfolded Chinese landscape painting. Research 40 Then And Now 34 42 Strong Renminbi Policy & the Coming of Age of Outbound China’s Outward FDI investment is also a part of international trade. Fairs & Expos Zhang identified three main factors 48 China Fairs & Expos that will make the foreign investment world Expo environment tougher for Chinese 52 Haibao to “Tour” the World enterprises: declining demand and price, shrinking ccpit international assets, and a lack of 53 The Chinese Products Promotion Week (Europe), also confidence. the 2nd China-EU Cooperation Forum on Economy and Trade held in Hague Administrated by(主管) CCPIT(中国国际贸易促进委员会)

Sponsored by(主办) Exchange CCPIT Media and Press Center 中国国际贸易促进委员会宣传出版中心 54 CHITEC, Innovation Changes the World

57 Chengdu, The Next Destination for International 社长 President 杨晓东 Yang Xiaodong 总编辑 Editor-in-Chief 王晓同 Wang Xiaotong Conferences 副社长 Vice President 石 净 Shi Jing

Guide 编辑部副主任 杨 蔚 Editorial Deputy Director Yang Wei 59 Guide to Application,Transaction and Administration 编辑部 Editorial Department 郭 艳 Guo Yan for Duty Reduction or Exemption Tel:86-10-68053271 臧可佳 Zang Kejia 郭丽琴 Guo Liqin 60 Guangzhou Cuxtoms Guide to Clearance of Import/ 李 振 Li Zhen 英文校审 English Polisher 泰瑞·克兰丹农(美) TY Clendenen Export Goods

经营部总经理 石 净（兼） Travelog Marketing Department Director Shi Jing 副总经理 白义峰 Bai Yifeng 62 Shaanxi Impressions Deputy Director 惠 飞 Hui Fei 项目经理 Manager 石林峰 Shi Linfeng Tel:86-10-88075934 游万龙 You Wanlong Rule 88075494 李小冬 Li Xiaodong 丁秋珍 Ding Qiuzhen 64 Measures of the General Administration of Customs 高 嵩 Gao Song

of the People’s Republic of China for Implementing 通联发行部总经理 李英宏 the Regulations of the People’s Republic of China Distribution Department Director Li Yinghong 项目经理 Manager 张 越 Zhang Yue on Customs Protection of Intellectual Property Rights Tel:86-10-88075342 余 涛 Yu Tao (Part II) 王 石 Wang Shi

CHINESE tIPS 理事会副秘书长兼秘书处主任 杨复强 Council Secretariat Director Yang Fuqiang 联络专员 Assistant 刘晓东 Liu Xiaodong 67 Make A Call I Tel:86-10-88075380 宋华峰 Song Huafeng 戚英杰 Qi Yingjie Supply info 石 林 Shi Lin

68 2009 China Market Suppliers List General Distributor For Overseas Subscribers 国外发行总代理 China National Publications Import & Export(Group) Corporation Index of Advertisement 中国图书进出口(集团)总公司 Add: 16, Gongti East Road Beijing, China 江西昌河汽车股份有限公司 Post Code:100020 Jiangxi Changhe Motors Co.,Ltd 地址：北京市朝阳区工体东路16号 Tel: 86-10-65066688-8822 65063082 贵州茅台酒股份有限公司 China International Book Trading Corporation China Dweichow Moutai Distillery Co.,Ltd 中国国际图书贸易总公司(GUOJISHUDIAN) 国际投资促进网 Add: Box 399, Beijing 100044, China www.sino-investment.org 地址：中国北京399号信箱(100044)

2009 中国（青海）国际清真食品就用品展 邮发代号 80-799 The 2009 China (Qinghai) International Halal Food and 国内统一连续出版物号 CN11-1020/F Products Fair 及国际标准刊号 ISSN0009-4498 东北亚投资贸易博览会 AD LICENCE No. JXGS/G-0249 The Fifth China Jilin·Northeast Asia Investment and Trade Expo 广告经营许可证号 京西工商广字第0465号 北京盛锡福帽业有限责任公司 Domestic Price 国内订价 16元(RMB) Beijing Shengxifu Hat Co., Ltd 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 ↓ CPI: 1.5%↓ in April PPI: 6.6% in April China’s producer price index (PPI), a major measure China’s consumer price index (CPI), the main gauge of inflation, of inflation at the wholesale level, fell 6.6 percent in April fell 1.5 percent year on year in April, the National Bureau of Statistics year on year, the National Bureau of Statistics (NBS) an- (NBS) said on May 11. nounced on May 11. It was the third decline in a row since February, when the CPI The decline compared with a 6.0-percent drop in dropped 1.6 percent, which in turn was the first fall since October March and 4.6-percent fall in the first quarter from the 2002. The result was in line with market expectations and analyst same period last year. Prices of production materials fell 8.1 forecasts. percent in April year on year, the NBS said in a statement. Food prices, which comprise one-third of the CPI, dropped 1.3 The PPI for January-April fell 5.1 percent over the percent, dragged down by a 28.6-percent decline in pork prices as de- same period last year, it said. The NBS also announced mand plummeted amid a global flu outbreak thought to be connected the consumer price index for April was down 1.5 percent with pigs. Non-food prices fell 1.5 percent. year on year and 0.2 percent month on month. (NBS) The index was down 0.2 percent from a month earlier, and the figure for January-April fell 0.8 percent from the same period last year. Urban fixed-asset investment: Lian Ping, chief economist with the Bank of Communications, ↑ said the weakening reflected the high base of comparison, since the 30.5% in first 4 months CPI soared by 8.5 percent last April. The consecutive declines did not presage deflation, and the figure was expected to rise starting at mid- year. However, Lian said the figure was expected to rise from May forward, at least in month-on-month terms, as global commodity prices had begun rising again amid signs of economic recovery. Last month, domestic prices of copper, aluminum and zinc rose by 10 percent to 20 percent on average. Oil product prices also edged up. The consecutive falls in the CPI and PPI aroused concerns about deflation in the world’s third-largest economy. But analysts said that given the inflationary nature of the government stimulus package and the massive expansion of bank credit in the first quarter, deflation was unlikely. China’s urban fixed-asset investment in the first four The country pumped RMB 4.58 trillion (US$670 billion) of new months rose 30.5 percent year on year to RMB 3.71 tril- loans into the economy in the first quarter to stimulate growth. Lend- lion (US$543.2 billion), the National Bureau of Statistics ing in the early months of 2009 has already neared the RMB 5 trillion announced on May 12. of new loans targeted for the whole year. In March alone, new loans The growth rate was 1.9 percentage points higher increased by a record RMB 1.89 trillion. than in the first quarter. The growth rate in the primary The People’s Bank of China (PBOC, the central bank) said in its sector (farming, fishing, forestry and the like) remained quarterly monetary policy report on May 5 that China would stick to the highest, up by 82.1 percent to RMB 58.3 billion in the its moderately easy monetary policy and ensure “ample” liquidity at first four months. The secondary sector saw investment banks. rise by 27.8 percent to RMB 1.6 trillion and the tertiary The State Information Center, a government think tank, predict- sector by 31.6 percent to RMB 2.05 trillion. ed in a report released on May 4 that the CPI would drop 1.3 percent Investment in real estate rose 4.9 percent to RMB in the second quarter. One hundred economists polled by the China 729 billion. The growth rate was 0.8 percentage points Economic Monitoring & Analysis Center under the NBS at the end of higher than the first quarter, the NBS said. From January March expected the figure for the whole year would range between 0 to April, China carried out 86,420 new projects, up 45 to 0.2 percent. percent from a year earlier, with total investment surging Deflation was unlikely, the survey found, considering the ample 90.7 percent to RMB 3.68 trillion. bank liquidity and the moderating inflation comparison base in the The surge in fixed-asset investment was driven by latter half of 2008. Premier Wen Jiabao told the annual national legis- the 4-trillion-yuan stimulus package and expanding bank lative meeting in the early March that the inflation target for this year credit, analysts said. New credit extended in the first quar- would be about 4 percent. ter stood at a record RMB 4.58 trillion, but new lending Xu Lianzhong, official with the National Development and Re- cooled in April to RMB 591.8 billion. form Commission, the top planning agency, said that the CPI would Central government project investment rose 29.3 likely bottom out in the second quarter, so the possibility of further percent to RMB 346.6 billion from January to April, with interest rate cuts could not be ruled out. (NBS) similar investment by local governments up 30.6 percent to RMB 3.36 trillion. (NBS)

8 A griculture

Pig producers struggling amid China issues guideline on price diving maintaining agricultural growth

For the second time in three China’s State Council on May 11 published a guideline years, China’s pig farmers are strug- to maintain current agricultural development and promote gling to make ends meet. income for farmers. It consists of 22 items in eight parts, The country has an overabun- calling for more efforts to expand domestic demand, pro- dance of pigs. Combine that with mote exports and stabilize grains’ prices. fear over the A/H1N1 flu, formerly The guideline calls for more support for spring sowing, commonly referred to as “swine flu,” including pest control, guarding against natural disasters and farmers find themselves unable and science and technology services. It also stresses the im- to make a profit when they go to portance of granting subsidies to farmers and setting grain market. prices. (Xinhua) Lan Yushun sold 60 pigs at RMB 8.2 (US$1.2) per kilogram two days ago, losing about RMB 6,000. “It is better than losing more if the price keeps plummeting,” said UN chief urges steps to Lan, whose 1-hectare barn in Shanxi Province produces more than 2,000 pigs a year. revitalize agriculture, ensure food The National Development and Reform Commission (NDRC) is- sued a warning on May 15 that the sector began to lose money as the security for all average rate between the prices of pigs and feed in 36 big cities was 0.1 Warning that the global food crisis is far from over, point lower than the break-even point as of May 6. UN Secretary-General Ban Ki-moon on May 13 urged Deputy director of the NDRC pricing department Zhou Wangjun Member States to agree on a set of decisions that will revi- also pointed out supply had surpassed demand and the gap could widen talize agriculture, support small farmers and promote food as consumption of pork usually dropped in summer. The government security for all. would decide whether to start buy large quantities of pork based on “The food crisis is not yet behind us. Indeed, it may market conditions in an effort to stabilize prices, said Zhou. have widened its scope,” Ban told the opening of the 17th He said he was uncertain about the planned program’s effect in stop- session of the UN Commission on Sustainable Development ping the price from falling. Following the warning, Lan decided to cut at the UN Headquarters in New York. The two-week ses- production by 1,500 head this year, equal to about RMB 15,000 in total. sion of the Commission, which began last week, is expected “I lost RMB 260,000 in 2006 when the prices plunged drastically to culminate in policy decisions in areas such as agriculture, due to enormous supply, but sluggish demand. I just don’t want it to rural development, land, drought, desertification and Africa. happen again,” said Lan, who began to raise pigs in 1994. Ban said that high food prices mean 100 million people “The flu, which has no connection to pigs other than containing in low-income countries are at risk of joining the ranks of swine flu genetic sequences, was another disaster for us. People stopped the malnourished. As a result, the World Food Program buying, driving the price down further.” (WFP) will need to increase its budget from US$500 mil- In Jinzhong City, Lan’s hometown, pigs sold at about RMB 9.6 lion to US$750 million to maintain its operations. per kg before the second half of last month, when the flu broke out. The At the same time, he noted that there is broad-based price dived to RMB 6.2 per kg during the May Day holiday. international support for addressing this issue. In particular, The fortunes of China’s hog industry have fluctuated drastically he was pleased with the Commission’s initiative to convene since 2006. The serious price fall prompted the central government to a ministerial roundtable on a sustainable green revolution launch stimulus policies in 2007, which prompted enthusiastic invest- for Africa. ment in the sector. Production greatly expanded in the following two “Investing in an African green revolution will serve years, slashing prices in the second half of last year as the consumption not just food security but progress across all the Millennium grew weakly. Development Goals (MDGs), including environmental sus- Under the stimulus policy, Lan received a subsidy of RMB 48 tainability,” he said, referring to the set of anti-poverty tar- per year per pig breeding sow and every pig in his barn was insured gets global leaders have pledged to try to achieve by 2015, for RMB 1,000. However, Pan Yun, vice president of the Academy of known as the MDGs. Social Sciences of Shanxi, said the policy focused on the temporary “To achieve a Green Revolution, African farmers, must market situation rather than the industry’s long-term development. have access to land and security of tenure. They also need The policy had been in effect for three years, much longer than access to markets, technology and improved infrastructure,” necessary. It had become a channel for farmers to get money, but its he stated, adding that this includes women farmers. original purpose of regulating the market was not well realized, Pan In the midst of a global recession, things can deterio- said. “The stimulus measures actually sharpened market fluctuation,” rate “frighteningly fast,” the secretary-general said, adding Pan said. “it is but a short step from hunger to starvation, from dis- The government should work out a long-term plan based on the ease to death.” sector’s development, covering industrial goals, competitive capacity, The international community, he said, must offer production and processing chains, backup policies, and an early warn- short-term emergency measures to meet critical needs. But ing mechanism covering market demand, price movement and break- it must also make longer-term investments to promote food even point, Pan said. production and agricultural development, enhance food se- Priorities should be given to large pig farms that could withstand curity and maintain and accelerate momentum towards the risks and were more adaptable to market changes than small farms, Pan MDGs. added. The Kunxing Farm in Jiangsu Province employs more than 100 “The decisions taken here must help to revitalize agri- pig raisers, producing about 30,000 pigs every year. Cost advantages culture and support the productivity and resilience of small and the brand reputation allowed the farm to earn RMB 0.7 per kg more farmers, in particular, to achieve food security for all,” the than independent producers even during this hard time, said owner Du secretary-general added. (Xinhua) Xiaokun. (Xinhua)

9 nergy nergy E Report: China’s power use falls 3.63% in April China’s power consumption declined 3.63 percent year on year in April, larger than the 2.01 percent decrease rate in March, the China Securities News quoted figures from the China Electricity Council (CEC) May 15. A total of 275.67 billion kilowatt hours of electricity were used in April. The figure for the first four months was 1.06 trillion kilowatt hours, down 4.03 percent from the same period a year ago. Analysts said the extending decline indicated a soft footing in economic recovery. It is normal that power output and consump- tion have ups and downs in the process of economic revival. From January to April, power used by the agriculture and tertiary sectors went up 4.69 percent and 9.04 percent. And that for industrial sector slipped 8.29 percent. The National Bureau of Statistic (NBS) said on May 13 that power generation fell 3.5 percent last month from a year earlier, to 271.29 billion kilowatt hours. The industrial output rose 7.3 percent in the same month. Since the industrial sector consumes about 70 percent of China`s power, some economists questioned whether a rise in indus- trial production could be accompanied by a decline in power consumption. Zhang Liqun, a researcher with the Development Research Center of the State Council, a government think-tank, told Xinhua that when looking at the decline in industrial power use, it was important to remember that industrial upgrading was still in prog- ress. The decline of electricity consumption by heavy industry, which accounts for 82 percent of total industrial power consump- tion, was the leading cause for the overall decline. According to CEC data, power consumed by the heavy industry was down 8.62 percent in the first four months, and that for the light industry sank 6.76 percent. Analyst expected that power use in May would fall slower than the previous month, as the rebounding electrolytic aluminum and iron and steel industries would use more electricity in the coming months. (Xinhua)

China, world’s 4th in wind First landfill gas power generation power capacity project completed in Hainan

With total installed capacity of 12 million Approved by the National CDM Board, the National Development and kilowatts, China has become the world’s fourth Reform Commission recently agreed the landfill gas power generation project country in terms of wind power-installed capacity, in Yanchunling, Haikou City could be built into a Clean Development Mecha- an official said on May 23 in Beijing. nism (CDM) project, and sell its greenhouse gas emissions, namely no more “Concerning wind power-installed capacity, than 450,000 tons of carbon dioxide equivalent, at a price of no less than 11 China is next only to the United States, France and euros/ton to the UK-listed EcoSecurities, Hainan News reports. Spain,” Lu Yanchang, vice chairman of the China It’s understood that it is the first large-scale project to generate power Science and Technology Association, made the from landfill gas in Hainan Province, and also the first CDM project in Hai- above remarks at the fifth China Energy Strategy kou City. Forum. Yanchunling landfill gas power generation project, when built into a Wind power has become a main force in CDM project, is expected to reduce carbon dioxide emissions equivalent by China’s new energy development cause, said Lu, 41,100 tons per year on average from 2009 to 2012, said an official from Hain- adding that the country had built more than 200 an Provincial Development and Reform Commission. (China Energy Net) wind power plants as of 2008, with 12.8 billion kwh electricity generated. China’s total wind power has accounted for 1.5 percent of country’s total installed electricity China to speed up nuclear power capacity. The country will build more wind power projects before 2010, in east coastal areas, and vast development western regions, according to Lu. North Inner Mongolia and Hebei have ex- China’s nuclear power capacity is expected to reach about 5 percent of the ploited wind energy earlier than other regions on country’s total power capacity by 2020, according to National Energy Administra- the Chinese mainland. tion (NEA) on June 1 at a press conference. Inner Mongolia, covering 1.18 million square The target is higher than the original one set in 2007, which aimed for a kilometers, boasts 100 million kilowatts of wind nuclear power capacity of 40 million kw by 2020, taking up 4 percent of the total energy resources, with enormous white turbines power capacity. standing high to capture the strong winds from the NEA deputy head Sun Qin said that with a power capacity of 800 million kw heartland of Mongolia and Siberia. at present and an estimated 1.4 billion kw to 1.5 billion kw by 2020, it is time to The region is striving to increase installed ca- adjust the goal to match China's fast energy development. pacity of wind power to more than 10 million kilo- Sun said no final plan has been created yet to meet the goal as it needs more watts in 2010, almost half of that of the country’s work before it is reported to the State Council. largest hydropower project at the Three Gorges, The country would raise not only the quantity but also the quality of its said Ya Saning, director of the region’s economic nuclear power generation in revised mid-and-long term plan on nuclear power de- commission. velopment, according to the NEA. Hebei Province will also construct wind pow- “We expected to realize self-design, self-construction and self-management er plants with an installed capacity of more than 10 of our nuclear power facilities by 2020,” Sun said. million kilowatts as of 2020, said Zhao Weidong, At present, China’s nuclear power takes up 2 percent of the total power gen- an official with the provincial Commission of De- eration, while coal-fired power covers more than 80 percent of the total. About 15 velopment and Reform. (Xinhua) percent of the world’s power generation comes from nuclear energy. (Xinhua)

10 C hemic a l

April profits of Chinese petrochemical firms rise nearly 45% on lower crude prices China’s five leading petrochemical firms posted combined profits of RMB 27.1 billion (US$3.99 billion) last month, an in- crease of 44.8 percent year-on-year, China Daily reported on May 23. But the April profits were down from 28.3 billion yuan in March. The figures are released by the China Petroleum and Chemical Industry Association (CPCIA), which calculated profits from China National Petroleum Corp, China Petrochemical Corp, China National Offshore Oil Corp, Sinochem Corp, and Shaanxi Yanchang Petroleum (Group) Co. “Although the industry has seen some recovery compared with previous months, the demand is still weak and overcapacity still exists in the sector,” the CPCIA said in a statement. The April revenue from the five companies was 207.7 billion yuan, a decrease of 28 percent year-on-year, said the associa- tion. The April turnover of China’s petrochemical industry was 502.9 billion yuan, down by 8.4 percent year-on-year, said the association. However, it saw a 1-percent growth when compared with March. Domestic oil refining enterprises continued to per- form well against relatively low crude prices. China Petrochemical Corp, the country’s largest refiner, saw a 48.4-percent growth in profit from a month earlier, according to the CPCIA. However, Su Shulin, chairman of China Petrochemical Corp’s listed arm Sinopec Corp, said on Friday that the company would lose money turning oil into fuel if crude trade above 60 U.S. dollars a barrel and the government prevents it from increas- ing prices. Global crude prices are trading above 60 U.S. dollars a barrel in New York and London on Friday, up more than 30 percent since the beginning of this year. (China Daily)

Petrochina secures spc stake

Petrochina, the state energy group, has agreed to pay US$1bn for 45.5 per cent of Singapore Petroleum Company in what will be the first major Chinese offshore purchase of a downstream energy company. Petrochina will buy the entire stake in SPC held by Singapore’s Keppel Corporation, the world’s largest maker of oil rigs, and will carry out a mandato- ry general offer for the remaining 54.5 per cent of the Singapore-listed company as soon as the deal is granted Chinese regulatory approval. The deal will be Petrochina’s first cross-border acquisition of a public company, the first Chinese takeover of a publicly listed company in Asia and the largest public takeover in Singapore since 2001, according to people involved in the transaction. The Chinese company agreed to pay US$6.25 per share for SPC, which op- erates one of the three major refiners in Singapore, a 24 per cent premium over SPC’s closing price on Friday of US$5.04 and a 120 per cent premium over its six-month volume-weighted average price. The offer for SPC implies an equity value for the entire company of US$2.25bn on a fully diluted basis. The com- pany’s market capitalisation was US$1.8bn on Friday. “SPC will become a new platform for the implementation of our interna- tional strategy and will provide a broader foundation and stable path for development,” Petrochina said in a statement. “The Chinese oil majors are still focused on securing upstream resources through merger and acquisition, but this purchase of SPC is a logical and smart move,” said a person involved in the deal. “In fact this is a teeny tiny deal for Petrochina.” The Chinese government last week called on domestic companies, particularly state-owned “champions”, to take advantage of depressed asset valuations by stepping up their merger and acquisition activity abroad. (www.ftchinese.com)

Sino-Russia oil pipeline serves strategic goals of both sides

The construction of the China-Russia oil pipeline conforms with the strategic goals of China and Russia to diversify the former’s energy imports and latter’s energy exports, Chinese Ambassador to Russia Liu Guchang has said. The move reflects the two countries’ confidence and determination to tide over together the current global economic downturn, Liu said in a recent written interview with Xinhua on May 10. The signing of a package of oil cooperation deals between China and Russia as well as the start of the oil pipeline project marked a major breakthrough in their energy cooperation, represented a new height of China-Russia strategic partnership of cooperation and further substantiate this partnership, Liu said. Trade of crude via the pipeline will help stabilize and enhance the growth in bilateral trade, the diplomat added. Under the agree- ment reached between both countries, China and Russia will jointly build and operate the pipeline from Russia’s Siberian city of Skov- orodino to China’s northeastern city of Daqing as its terminal via China’s border city of Mohe. The construction of the Russian part of the pipeline started on April 27, and the Chinese part will be launched in mid-May. The pipeline, with an annual capacity of 15 million tons of crude to China within 20 years, is expected to go into operation in October 2010. The two sides will study the feasibility of in- creasing its delivery capacity after the pipeline is put into production, Liu said. The project will ensure stable and secure oil supplies to China, open a stable and sound market for Russian oil, and boost the co- operation between enterprises of the two countries in oil exploration and refining, Liu said. Such a cooperation mode may well serve as a good example for the two sides to further broaden and deepen their all-round, long-term and stable energy cooperation in natural gas, nuclear energy and electric power, Liu said. (china.chemnet.com)

11 teel S China considers setting iron ore price index Leading coal China will unveil its first iron ore trade platform Rizhao International producer teams up with major Iron Ore Trade Center on May 25 in Shandong Province, which signals that the steel maker to sharpen establishment of the country’s iron ore price index is under way, Bai Wenhui, executive of Shandong Huaxin Trade Co. Ltd., one major shareholder of the competitive edge trade center, told Xinhua May 22. Jointly invested in by five local private companies pursuing bulk com- The Shanxi Coal-Steel Energy Development modity transaction in Shandong Province, the center mainly provides elec- Company began operation recently in this capital tronic commerce services for iron ore suppliers and stee lmakers. Its registered city of north China’s Shanxi Province, a senior capital totals RMB 20 million (US$ 2.93 million). The trade center offers ser- official with the Shanxi Coking Coal Group vices including electronic transaction, information exchange, quality inspec- confirmed May 30. The move is believed to be tion, storage, transportation, insurance, and settlement for the two parties in a significant measure for the province, which is iron ore trading, according to Wang Lei, head of the preparation team for this located on China’s major coal belt, to cope with program. the global economic downturn through deepening “As the biggest iron ore importer, China has not set an iron ore price in- cooperation between coal and steel industries. dex to date. The iron ore trade center will promote orderly iron ore imports According to Bai Peizhong, chairman of the and standardize activities of trading parties, and gradually facilitate China to Shanxi Coking Coal Group, the new company launch its own iron ore price index in the future,” said Bai. Data from China has a registered capital of RMB 500 million (US$ Customs shows that the country imported 443.7 million tonnes of iron ore in 73.3 million), with the coking coal supplier taking 2008, half of the world’s overall iron ore exports volume over the year, and the 60 percent of the stake and Taigang Group hold- imports in January-April period in 2009 hit 188 million tonnes. (Xinhua) ing the remaining 40 percent. The new energy company will engage in coal mining, dressing and marketing. It will ensure coal supplies for China steel exports expected to keep Taigang Group and share profits from coal mining with the steel maker, Bai said. falling in 2009 As China’s largest coking firm, the Shanxi Coking Coal Group turns out 10 percent of the China’s steel exports is expected to keep falling in 2009, with annual country’s total product and supplies more than export volume no more than 25 million tons, according to Liu Gang, a senior 20 percent of such materials needed by 18 big researcher from the National Development and Reform Commission. Liu pre- steel makers nationwide. Taigang Group is a dicted at the Ferro-Alloys Conference that Chinese exports would deteriorate world leading stainless steel manufacturer in in the near term. terms of production capacity and technologies. According to Liu, China’s steel exports will probably hit the lowest point Industry observers said the establishment of the in the third quarter. But it is still possible for steel prices to rebound in the new company would be conducive to sharpening second half year.China has spent the most part of its economic stimulus pack- competitive edge of both coal and steel produc- age on steel-consuming industries such as building industry and auto industry. ers. (Xinhua) Steel futures prices should be employed as a reference for iron ore price ne- gotiation. But steel futures is still in a weak position in China and has a very limited influence on the market, Liu added.( www.chinamining.org) Major steel producers report losses Chinese mills should demand bigger iron in first 4 months ore cut, Shagang says Twenty- Chinese steelmakers should demand a bigger cut in iron ore prices than nine large and agreed by Japanese rivals because there is an oversupply of the raw material, medium-sized the chairman of China’s fifth-biggest steel producer said. Chinese steel “There are huge stockpiles at Chinese ports,” Shen Wenrong, the chair- producers re- man of Jiangsu Shagang Group Co. said May 27 in an interview. “We shouldn’t ported RMB accept the Japanese steelmakers’ accord with Rio Tinto Group for a 33 percent 5.18 b i l l io n cut,” he said. China’s steel association is discussing “counter measures” to re- ( US$762 .4 6 spond to the agreement between Rio Tinto and Nippon Steel Corp. that set iron million) in ag- ore prices at the second- highest annual price on record, Shen said. Chinese gregate losses in the first four months, the China mills, the world's biggest producers, have previously called for prices to be as Iron and Steel Association (CISA) said here May much as halved and are yet to agree an accord. 22. The 29 producers were among 72 surveyed Chinese producers “can choose” to buy more iron ore on the spot market by CISA, the association’s vice chairman, Luo should contract agreements with producers not be reached, Luo Bingsheng, Bingsheng, said. vice chairman of the China Iron and Steel Association, said on May 22. “We The 72 companies reported RMB 575.59 bil- are already buying some from the spot market,” said Shen, who’s Jiangsu lion in revenue, down 18.9 percent year on year, Shagang is also China’s biggest closely held steel mill. ” The 33 percent cut is Luo said. They paid RMB 15.42 billion in taxes, too far from our demand of 40 percent to 45 percent.” Almost 40 percent of down 85.07 percent year on year, Luo said. Losses China’s 72 biggest steel mills had losses last month, the Ministry of Industry were mainly caused by slumping domestic steel and Information Technology said May 22. The steelmakers had a combined prices, Luo said. Many producers have cut costs, loss of 5.2 billion yuan in the first four months, it said. Chinese steelmak- and the production cost of steel dropped 13.75 ers are likely to follow their Japanese rivals in agreeing to the 33 percent cut, percent in the first quarter, Luo said.(Xinhua) Goldman Sachs JBWere Pty analysts led by is Melbourne-based Malcolm Southwood said May 26. (Bloomberg)

12 A uto

Shandong province plans auto behemoth In rural China, a bumper crop of new car owners Three auto parts makers, including a leading engine maker and an earthmover manufacturer, will merge to create an industrial conglom- Like everybody else in his farming village, erate in Shandong province with sales projected to exceed RMB 100 Zhan Changchun used to get around on a bicycle. billion by 2012, the latest industry consolidation move in China’s frag- This month, the 29-year-old walked into a local mented auto sector. dealership, pulled out US$7,300 in cash from his Weichai Holdings Group, the biggest shareholder of the country’s leather satchel and drove away with the family’s major high-speed heavy-duty diesel engine maker Weichai Power, and first car: a seven-seat micro-minivan that’s jointly Shandong Construction Machinery Group Co, parent of one of the na- produced by China’s Wuling and General Motors. tion’s leading earthmover makers, and Shandong Auto Industrial Group, The Zhans drained their life savings and bor- will form a venture called Shandong Heavy Industry Group Co, accord- rowed from relatives, bold moves in a slowing ing to separate exchange filings by their listed units.The three compa- economy. But they couldn’t resist a slew of govern- nies, all based in the eastern province of Shandong, did not elaborate ment incentives: a 50% sales tax reduction, elimi- on the details, such as the financial terms, the timetable and the future nation of hundreds of dollars in road maintenance structure, of the planned merger in their exchange statements. But they fees, plus the biggest of them all, a 10% rebate all said the positions of their controlling shareholders would remain un- for rural residents buying vehicles with engines changed. smaller than 1.3 liters. It’s all part of Beijing’s “Send Weichai Holdings owns 14.92 percent of Hong Kong and Shenzhen- Automobiles to the Countryside” campaign, an ef- listed Weichai Power and 30.59 percent of Shenzhen-listed Weichai fort to speed rural development and boost domestic Heavy Machinery Co. Shandong Construction Machinery has a 21.1 consumption at a time when foreign demand for percent stake in Shenzhen-listed Shantui Construction, one of the coun- China’s manufacturing exports is slumping. The try’s biggest earthmover makers. The combined sales of the three listed government is also giving people in the country- companies amounted to more than RMB 40 billion in 2008, according side rebates for buying refrigerators and other ap- to their annual reports. Shandong Auto Industrial Group has the capac- pliances. ity of producing 60,000 light trucks and RMB 1 billion of auto parts a “Government policy is good these days,” said year, according to Shandong Association of Automobile Manufacturers. Zhan, a big man with a round belly and cherubic (China Daily) face. He beamed as he showed off his gray van to visitors. The seats were still covered in plastic Red Flag car to grace National wrap. Red ribbons were tied around the side mir- rors, good-luck symbols for a new vehicle. “I never Day parade thought I could buy a car,” he said. That’s a refrain heard in many Chinese villages these days as hun- An offi- dreds of thousands of farmers join the motor age. cial with FAW And it’s a big reason China has overtaken the U.S. Car Co., Ltd. in car sales this year. While new-vehicle purchases said May 26 in the U.S. plunged 37% in the first four months of that one of the this year, they jumped more than 9% in China, to 3.8 company’s se- million, with record volumes in March and April. dans would be China’s surprisingly strong car sales have used in a grand given companies like GM, which is tottering at military pa- home, a much-needed boost. It’s prompted auto rade scheduled companies and makers of consumer goods to focus in Beijing on even more on China, particularly the vast, develop- National Day, ing rural regions. “Just imagine: If every farmer Oct. 1. buys one cellphone, that would be 900 million “I believe units,” said Zhu Xinkai, an agricultural economics that the Nation- specialist at Renmin University of China. al Day military parade will definitely use the Red Flag sedan,” which Zhu doesn’t see China’s rural car culture was domestically designed and developed, said Bai Yu, party chief of reaching full bloom for at least another decade. But the company based in Jilin Province, northeast China. Bai didn’t give the global financial crisis appears to be pushing the further details, but media reports have speculated that a new, high- trend. Among those taking advantage of the car end HQE model is expected to appear during the military review incentives are migrant workers who have returned planned for the 60th anniversary of the founding of New China. home after losing factory jobs; they’re breaking The 6m-long HQE, the Red Flag’s top model, is expected to go open piggy banks or borrowing to buy vehicles to on sale this year for more than RMB 3 million (US$437,700). The Red launch delivery and other businesses. Flag brand has been the pride of China’s car industry, said Bai. Late In Chuzhou, a city of 4.5 million in Anhui Chinese leader Deng Xiaoping and former President Jiang Zemin province about 200 miles northwest of Shanghai, rode in Red Flag cars during National Day parades in 1984 and 1999, the average per capita income is only US$1,700. respectively. Many farmers get around in three-wheeled motor- FAW Car is a holding subsidiary of China’s largest car maker, cycles with a bed in the back for hauling goods. FAW Group Corp., and was the first listed car producer in China. Red Yet people recently have been snapping up cars so Flag and Benteng are two of its major models. Since the first Red Flag fast that some dealers have run out of stock. About came off the production line in 1958, it has been used in many grand 3.5 million of Chuzhou’s population is considered celebrations in China. (Xinhua) rural. (latimes.com)

13 China to create 3 mln Consumer goods industry maintains jobs in light industry stable growth ight I ndu s try The State Council, China’s Cabinet, May

L China’s consumer goods industry kept stable development in the first four months this year, thanks to rising domestic demand that offsets falling 18 announced that it would endeavor to create export, said the Ministry of Industry and Information Technology (MIIT) 3 million new jobs in light industry in the com- May 22. ing three years by boosting domestic demand. In the past four months, the industrial output of consumer goods grew The State Council in February unveiled initial by 8 percent. The figures were higher for March and April at 9.8 percent plans to boost light industry in a bid to buoy and 9.2 percent each. Among its major sectors, textiles, tobacco and phar- the economy together with the RMB 4 trillion maceutical, and light industry grew by 8.1 percent, 6.6 percent, 6.1 percent (US$586 billion) stimulus package presented in and 13.8 percent in industrial output respectively. Industrial output of the November and nine other specific industry stim- four sectors accounted for 30.4 percent of the national total, statistics from ulus plans including petrochemicals, textiles and MIIT showed. The light and textile industries, which had been among the other sectors. ten industries supported by government’s boosting plans, reported shrink- The General Office of the State Council ing decline in exports. presented the detailed light industry stimulus Exports of light industry fell by 10.9 percent and that of textile industry plans May 18 on its Chinese website www.gov- dropped 8.4 percent from January to April. However, the decline rates were cn. The government would give financing sup- 4.8 and 7.4 percentage points lower compared to that of the whole industrial port to small and medium-sized light industry export in the same period. (Xinhua) companies with good development potential in a bid to create more jobs, according to the plan. The industrial output of the light industry stood China promotes consumption at 2.62 trillion last year, accounting for 8.7 per- cent of GDP. Total exports reached 309.2 billion of green home appliances with price cuts U.S. dollars, accounting for 21.7 percent of the China is reducing prices for energy-efficient home appliances, the Na- national total last year. tional Development and Reform Commission (NDRC) said in a statement The production volumes of more than 100 May 21. Price cuts went into effect May 21 and will last three years. The types of Chinese light industry products, includ- program is sponsored by the NDRC and the Ministry of Finance. ing home appliances, plastics, furniture and Consumers will find prices lowered between RMB 300 to RMB 850 (44 others were the world’s highest. The industry to 125 U.S. dollars) on energy-efficient air-conditioners, refrigerators, tele- employed around 35 million workers by the end vision sets, washing machines and motors.Cost reductions are expected to of 2008. Chinese light industry has felt the pinch generate RMB 400 billion to RMB 500 billion of consumption demand and from the global economic downturn and waning save 75 billion kwh of power. It could also have the environmental impact export demands. Since Feb. 1, an estimated 900 of cutting carbon dioxide emissions by 75 million tonnes annually, said Xie million Chinese rural residents were eligible for Zhenhua, NDRC vice minister. a rebate of 13 percent on the prices of home ap- Manufacturers of energy-efficient products are also eligible for subsi- pliances, in a move by the government to boost dies although specifics were not released by the NDRC. “Energy-efficient domestic sales of light industry products. These products now occupy only 5 percent to 15 percent of the domestic market products include color TV sets, refrigerators, share. After the implementation of the price cuts, their market share was freezers, mobile phones, washing machines, com- expected to be raised to 30 percent,” Xie said. (Xinhua) puters, water heaters, motorcycles, air condition- ers and others. “China will beef up efforts to bolster in- Haier says to take 20% stake novation and industrial upgrading of the light industry, aiming to foster 10 light industry con- in NZ company glomerates whose annual sales will exceed 15 China’s largest home appliances maker Haier announced May 27 that billion yuan,” according to the plan. In addition, it would take a 20 percent stake in New Zealand’s Fisher & Paykel Appli- the government wants firms across the country to ances. Haier did not reveal how much it would invest in the New Zealand’s make existing facilities and production processes white goods manufacturer for the stake, but Fisher & Paykel told the New more environmentally friendly. The government Zealand Stock Exchange May 27 that Haier would invest about 80 million ordered companies to improve the light industry’s New Zealand dollars (nearly US$50 million) in the company. products mix and reduce its pollutant discharge. Haier said in a statement that the two companies have also signed a co- Chemical oxygen demand (COD) must be cut by operation agreement, pledging to complement each other’s technical advan- 10 percent or 255,000 tonnes by 2011 from the tages, share each other’s resources of market and supply chain, and enhance 2007 level. Waste water discharge will be reduced cooperation in after-sale services. “As part of the cooperation, Haier will by 29 percent, or 1.95 billion tonnes by 2011 from franchise and distribute home appliances of Fisher & Paykel brand in the the 2007 level, according to the May 18 plan. Chinese market, and Fisher & Paykel will franchise and distribute home ap- “China would eliminate outdated produc- pliances of Haier brand in the Australian and New Zealand’s markets,” the tion capacity of 30 million units of low-efficient statement said. Headquartered in the seaside city of Qingdao, east China’s refrigerators and freezers, 600 million units of Shandong Province, Haier is the world’s fourth largest home appliances incandescent bulbs and others,” the plans stated. manufacturer and employs more than 50,000 people globally. Founded The government will also step up efforts on im- in 1934, Fisher & Paykel mainly makes refrigerators, washing machines, proving product quality and is scheduled to for- cooking stoves and dishwashers. It enjoys the largest market share in New mulate 450 new industry standards by 2011 in ar- Zealand, but it is now debt-ridden due to falling New Zealand dollar and has eas including food additives, meat products, wine been trying to reduce its overseas debt. (Xinhua) making, dairy products, beverages, furniture and others, according to the plan. (Xinhua)

14 T eX TILE

China boosts domestic wool textile sales

THE world’s largest vertically integrated wool company, Sunshine Mills, is poised to open hundreds of retail stores in China to offset flagging export sales. Australian Wool Testing Authority’s China liaison manager, Robert Wang, said the wool giant was confident it could counterbal- ance reduced demand in its traditional markets, Japan, USA, Europe and South Korea, by targeting China’s domestic market, which had been buoyed by the Chinese government’s US$600 billion stimulus package that had a 10 per cent textile focus. The emphasis has clearly changed from an export to a domestic focus, Mr. Wang told Rural Press after visiting China. The export market is really struggling throughout China, yet domestic wool sales in China are very good. Mr Wang said Sunshine‘s chief executive, Xiuming Cao, confirmed there would be no changes to their wool buying and emphasised that he believed there was “no replacement for Australian wool”. He is pretty confident about wool remaining in demand, Mr Wang said. With China celebrating its 60th anniversary for the peoples Republic of China this year, Mr Wang said Mr Cao was confident Sunshine could boost its wool sales as the event meant all soldiers received a new uniform, of which the bulk are made from fine Merino wool. In an assessment of Chinese wool buying consumer trends, Mr Wang said the suit market continued to lead the market. However, the knitwear sector had shown sustained growth over the past three to four years. This demand is expected to continue pushing the Meirno oddments market, which AWEX reported last week had continued to at- tract strong competition, and trend up by a further two cents a kilogram to 507c/kg clean. Landmark’s wool and economic focus reported China’s exports of wool clothing in 2008 (knitwear and woven wear) dropped by 5pc with exports to Japan down 8pc, to the USA down 9pc and a 23pc fall in exports to South Korea. Exports to the Commonwealth of Independent States (former USSR) fell by 57pc and to Hong Kong down 21pc. This demand was offset by a 40pc rise in sales to European Union for the same period. Landmark’s risk manager wool and livestock Anthony Boatman, said the lift in exports of wool clothing to European Union coun- tries could be attributed to retailers in the EU switching to the lower-priced supplies from China and away from the higher-priced Euro- pean offerings. (CTEI) China’s 1Q textile Textile sector will machinery imports drop 61 percent bottom out very soon – Ms Lilin, CCA According to a report compiled by the The just completed cotton season played havoc and spared neither the farmer China Chamber of Commerce for Import and nor the trader in the initial months of the new cotton crop arrivals in the market. Export of Textiles, based on customs statistics, Despite the fact that prices ruled at four year lows, there was minimal demand from the nation’s imports and exports of textile ma- the textile mills for want of liquidity. China fared no better, but was saved by the chinery during January-March 2009 decreased market intervention of the government which procured huge amounts of cotton by 56% from the year before to US$1,097 mil- from the farmers and ginners. lion: imports, US$866 million (down 61%) and With the objective of a getting a clear picture in the current market situation, exports, US$231 million (down 42%). Fibre2fashion spoke to Ms LiLin, Director (Public Relations), China Cotton As- Knitting machines were the top import sociation, who said, “China is the largest cotton producer, consumer and importer item with US$143 million (down 44%). Even in the world. In 2008, China’s cotton output reached 7,490,000 tons and imports for exports, knitting machines were the largest registered 2.11 million tons; yarn production completed 21.49 million tons, giving it item with US$93.24 million (down 20%). India the number-1 rank in the world”. was the largest market with US$72.26 million She added by saying, “China’s cotton imports from India marked 610,000 tons, (down 2%). (Asian Textile) accounting for a 29 percent share of China’s total imports due to which India is the second largest exporter of cotton to China, but impacted by the financial crisis, de- mand from international market is in the doldrums, textile and clothing products are Baotou Apr. textile overstocked and exports are disrupted, creating a direct impact on cotton demand”. “In October last year, China’s domestic cotton price fell by a larger margin Exports up 86.72% when new cotton arrived in the market and the Chinese government introduced provisional procuring measures in time and purchased 2.7 million tons of cotton for In April, Baotou (in Inner Mongolia Au- state reserves in total, which effectively protected the interests of farmers and stabi- tonomous Region) textile makers saw their lized cotton prices in domestic market,” she said. textile exports rally and rise sharply from the The present difficulties are temporary, in the long run, China’s textiles and previous month. The statistics show that tex- clothing are still relatively competitive in international market, and China has great tile companies in Baotou exported a total of potential lying in domestic demand. At present China’s economy has shown signs US$10.89 million textile products in April, up of warming-up. Meanwhile, China has implemented a series of plans to revitalize 86.72% from March. the textile industry, it is believed that China’s textile industry will bottom out very With the increase, Baotou became one of soon”, she concluded by saying. cities across China to see a growth in textile We next asked her, if she visualizes the market bending towards the man-made exports in April. Industry insiders revealed fibre industry, to which she replied, “No matter, whether at home or abroad, cotton that textile exports in Baotou had partly re- products have occupied a stable market share both in China and other countries in bounded since April as exporters received the world and with the improvement of living standards, as well as enhanced aware- more export contracts in former months. The ness of returning to nature and environmental protection, people will always have a Chinese central government US$600 billion attachment for cotton made products”. stimulus package does have a textile focus. About the consumer demand for organic cotton, she remarked, “As regards or- There are signals of Chinese exports of tex- ganic cotton, we have not conducted any special study or research related to organic tiles moving back to world market but they are cotton, since, China has very small production and even less consumption”. (Fibre- very early signals and growth will depend on 2fashion News Desk) the big picture of global economy. (CTEI)

15 99Bill launches one-stop “Personal Bill Center” service s lectronic

E 99Bill Corporation, a leading third-party electronic payment services provider in China, has launched the “Personal Bill Cen- ter”, a new service which help consumers to pay a variety of bills as long as they owns a bank card enabled with online payment function. The center gives consumers great convenience as it even enables them to pay all the bills by providing a one-stop service. For those who have yet to embrace the online payment services, 99Bill’s “Personal Bill Center” will also provide very convenient payment tools: without logging onto the online payment portal, consumers can also make the payments by authorizing deduction from bank cards or making phone calls to the IVR systems. Consumers nowadays pay various bills in their daily lives. In 99Bill’s “Personal Bill Center”, consumers can make the pay- ments immediately after choosing the amount of the payment and the party which is to receive the money. The new service sup- ports a number of payments such as public services, house rents, house mortgages, insurance, living expenses as well as 16 domes- tic leading banks such as the Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, China Merchants Bank and Bank of Communications. Consumers can also customize the “Personal Bill Center”. After adding a new bill, the center provides automatic logging ser- vice which will save consumers much time. Also consumers can pay all the bills by just one mouse click. Besides, the center can remind consumers ahead of the deadline of the payments. Researches by Shanghai-based iResearch have showed electronic payment has been growing in popularity in China and has become an integral part of their daily lives especially when shopping, booking and paying for living expenses. 99Bill’s “Personal Bill Center” has provided consumers an exciting experience as its localized applications have been catering to customers’ needs. (www.99bill.com)

China Mobile plans mainland market listing via CDR Lenovo reports loss from China Mobile, the country’s leading mobile carrier by subscrib- restructuring costs and sales ers, is preparing for listing in China’s mainland A-share market, Wang Jianzhou, chairman of the company said May 19. The Hong Kong-listed decline company plans to get back to the mainland market “as early as possible” China’s leading computer maker Lenovo by way of issuing China Depositary Receipts (CDRs), Wang said after Group reported a second consecutive quarterly attending the company’s annual shareholder meeting. loss on restructuring costs and a drop in its world- The company had been listed in Hong Kong and New York for wide computer sales, China Daily reported on May nearly 12 years and is eager to seek a listing on the mainland as early 22. The world’s fourth largest PC vendor posted a as possible so that domestic investors could have a chance to invest in loss of US$ 264 million for its fiscal fourth quarter the company, he said. By issuing CDRs, the company could maintain that ended March with its worldwide PC sales down consistency with its operations in the other two markets in terms of 8.2 percent year on year due to weakening demand, management, supervision and information disclosure, Wang said. The dragging its whole year earnings into the red. H-share price of China Mobile rose 2.6 percent to 74.15 Hong Kong dol- The company had reported a loss of 96.7 mil- lars on the same day. (Xinhua) lion dollars for the previous quarter, and for the last fiscal year, it was a US$ 226.4 million net loss. “The past two quarters have been a particularly challeng- China Unicom to invest RMB 35 bln ing time in our industry worldwide, and we took some significant steps to get our business back on in Guangdong the right path,”said Lenovo Chairman Liu Chuan- zhi. He reaffirmed that Lenovo “can make signifi- China Unicom (Hong Kong) Ltd, the country’s second largest cant progress” against competitors a year later by telecom operator, on Monday entered a strategic partnership with the focusing on emerging markets.Yang Yuanqing, chief Guangdong provincial government to pour RMB 35 billion into the executive of Lenovo, said China is Lenovo’s most province in the next five years, sources reported. According to the important market to get through the current difficult framework agreement, the cooperation will extend to IT infrastructure period, as the company’s sales in Greater China construction, e-politics, e-commerce, the IT industry, wireless develop- increased 4.4 percent in the fourth quarter, and its ment and the sharing of telecom resources. market share increased 1.1 point to 26.7 percent. Mobile Communications Corp, the parent company of the coun- Lenovo rearranged its business organization try’s largest telecom operator, China Mobile Ltd, signed a similar co- earlier this year to divide its regional operations operation framework agreement with the local government to invest a into two business groups, with one serving to devel- total of RMB 80 billion within five years in the province to deploy TD- oped markets and the other, emerging markets.The SCDMA network construction and speed up the development of the IT company has also set up two product groups based industry. on its “Think” and “Idea” branded products, which China Unicom earlier said that it will invest RMB 26 billion in mainly serve corporate customers and individual Shanghai within two years to support the city’s telecom sector and to consumers, respectively. The reshuffle, together contribute to network construction for the World Expo to be held in the with a cut of 2,500 jobs in January, will save the city in 2010. That investment is expected to help create 10,000 new jobs company 300 million dollars in operational costs in by 2010, in part by expanding China Unicom’s call center employee the year to come, Lenovo said. (Xinhua) base from 400 to 5,000 for the hotline service for the event. (China Knowledge)

16 T r a n s port

Hainan Airlines to get US$440m capital injection a

Hainan Airlines will get a capital injection of US$440 million from its parent company and the Hainan provincial government by tion selling them new shares, a person familiar with the matter told Dow Jones. Hainan Airlines’ debt-to-asset ratio will fall to around 81 percent after the injection, said the person who declined to be named. The carrier had a debt-to-asset ratio of 87 percent at the end of March. The airline joins other Chinese carriers, including China Eastern Airlines, China Southern Airlines and Shanghai Airlines, in receiv- ing state funds to help it weather the downturn in the aviation market caused by the global financial crisis. (www.cargonewsasia.com)

China Aircraft Services sets up new aircraft maintenance hangar at HKIA China Aircraft Services Limited (CASL) announced on May 22, the opening of its new aircraft maintenance hangar at the Hong Kong International Airport (HKIA). CASL is one of the only two companies franchised by the Airport Authority Hong Kong to provide aircraft line and base maintenance services at the HKIA. The hangar, which represents an additional 400-million-HK dollars (about 51.66 million U.S. dollars) investment by CASL into Hong Kong, provides 10,000 square meters of maintenance space and took about two years to build. This expansion will en- able CASL to increase its service offering to include hangar workshop support, heavy maintenance checks and major defect rectifi- cations to its clients including airline companies from Asia, Europe and America operating flights in and out of Hong Kong. Chief Executive Officer of China Aircraft Services Limited Angus Cheung said, “We see huge opportunities for the HKIA brought about by continued developments facilitating connections between Hong Kong and the Pearl River Delta. Our additional investment in the city represents our confidence in Hong Kong’s strengthening position as a regional aviation hub.” The company anticipates that its expansion will create over 200new job opportunities for the aviation industry in Hong Kong. Designed to meet increasing demand for its services, CASL’s new hangar is large enough to accommodate one wide-body and one narrow- body aircraft at the same time. This allows for servicing of both the large B747 aircraft used for international flights as well as the smaller aircraft used for regional flights. CASL has grown from around 300 employees in 1998 to over 1,000 currently and is currently one of the largest aircraft main- tenance and ground support service providers in Hong Kong. (Xinhua)

First China-assembled A320 test flight successful

After four hours’ flight, the first pany will be able to produce 48 A320 China-assembled Airbus A320 aircraft planes every year, according to Jean Luc landed smoothly at Tianjin Binhai Inter- Charles. national Airport at 2:56 p.m. on May 18, “With the final assembly line here a symbol of successful test flight. in Tianjin, we deepen and expand our The aircraft will be delivered to industrial relationship, which is a key Dragon Aviation Leasing in June from pillar of the internationalization strategy the Airbus Delivery Center in Tianjin of Airbus,” said Jean. and will be operated by Sichuan Air- According to a report by the Tianjin lines. Airport-based Industrial Zone, China “I am confident that the plane will has become the world’s second largest be delivered to Sichuan Airlines by the aviation market after the United States. end of June as scheduled,” said Jean Luc The country is estimated to need 2,670 Charles, General Manager of the Airbus passenger planes in the next 20 years. (Tianjin) Final Assembly Line Co. Ltd (FALC), after the test The Airbus company estimated in last February that the flight. He also said that this A320 assembled in China unques- Chinese mainland would need more than 3,000 aircraft between tionably demonstrated the same quality and performance as those 2006 and 2025, including 180 super jumbo passenger planes. assembled and delivered in Hamburg or Toulouse. In addition to the Tianjin assembly line, Airbus purchased The A320 FALC, which started to work in August 2008, is a 70 million U.S. dollars worth of high quality components and joint-venture between Airbus and a Chinese consortium compris- materials from Chinese companies in 2007 alone. Boeing and ing Tianjin Free Trade Zone and China Aviation Industry Corpo- Airbus currently dominate the world’s large airplane market, and ration (AVIC). Airbus China holds 51 percent of the stakes, while only manufacturers in the U.S., Europe and Russia own the tech- the Chinese Consortium holds 49 percent. nologies to build such planes. The Tianjin assembly line, the third on top of two in Tou- China, however, is actively developing such technologies. louse and Hamburg, is to deliver two types of aircraft of the A320 The country set up its first ever jumbo passenger aircraft com- family — A319 and A320. The A320 family, which includes the pany in Shanghai in May, 2008, taking a major step forward in its A318, A319, A320 and A321, is recognized as the benchmark large jet program. single-aisle aircraft family. “China has become more involved in Analysts believe that China would play a bigger role in the the world’s aviation industry,” said Professor Li Yanhua from the world’s aviation industry with the Tianjin line in operation, as Civil Aviation University of China, citing that the huge market final assembly lines stand for a core competitiveness of aviation potential has lured world’s aircraft giants as Boeing and Airbus. manufacturers. “China is an important — and increasingly im- The Tianjin-based assembly company is expected to deliver portant — part of the global aviation family,” Jean said. (www. a total of 11 A320 aircraft this year. Starting from 2011, the com- chinaview.cn)

17 cience S China to launch first Mars China considering manned lunar probe in second half of 2009 landing in 2025-2030 China’s first Mars probe, Yinghuo-1, is expected A space scientist has said that Chinese scientists are considering the to be launched in the second half of this year, an official feasibility of a manned lunar landing mission at an appropriate time be- of the Shanghai Academy of Space flight Technology tween 2025 and 2030. (SAST) said on May 28. China will be able to fetch samples collected by unmanned lunar The probe had passed test of the research phase, probe by 2017, Ye Peijian, chief designer of the lunar probe with China’s Zhang Weiqiang, deputy secretary of SAST Committee Chang’e Project, said at a science lecture held on May 22 in Shanghai. of the Communist Party of China, told the third Shang- “Through the development of lunar probes, we have made constant hai International Aerospace Technology and Equipment progress of the ability to explore the outer space,” Ye said. Exhibition. China launched its lunar mission in 2007 by successfully sending a The event runs from Thursday to Saturday and in- unmanned probe Chang’e-1 to the lunar orbit. The spacecraft managed cludes a full-scale model of Yinghuo-1. to transmit some pictures of the moon’s surface back in January last year. Yinghuo-1 will be launched by a Russian carrier Chang’e-1 ended its 16-month mission on March 1 this year by rocket, accompanied by the Russian aerocraft Phobos- impacting the moon, bringing the first phase of the nation’s three-stage Grunt. The Russian aerocraft is making a sample return lunar mission to an end. mission to Phobos, one of the moons of Mars, Zhang The second phase will lead to a landing and launch of a rover ve- said. hicle on the moon’s surface. Yinghuo-1 would go into Mars orbit in 2010 after According to Ye, China will launch the second lunar probe a 10-month, 380-million-kilometer journey, Zhang said. Chang’e-2 in 2010 which will conduct research at a 100-kilometer-high But unlike the Russian craft, Yinghuo-1 won’t land but moon orbit as the preparation for a soft landing by Chang’e-3. would only orbit and observe, Zhang said. “By 2013, China will send the landing craft and rover vehicle to the The Chinese probe is 75 centimeters long, 75 cm moon,” he said. wide and 60 cm high. It weighs 115 kilograms and was The chief designer said that Chang’e-3 will use variable thrusters to designed for a two-year life, according to Zhang. “Yin- make a vertical landing on the surface near the moon’s equator area. ghuo” means light from firefly in Chinese. The lunar rover will leave Chang’e-3 and work on the moon’s sur- Yinghuo-1 is expected to discover why water dis- face for three months, Ye said, adding scientists have decided to adopt appeared from Mars and explain other environmental isotope technique generator to provide energy for the rover when it is in changes of the planet, Zhang said. lunar nights when temperatures drop to 200 Celsius degrees below zero. The project is China’s third major space explora- For the third phase of the mission, China will recover a spacecraft tion plan after the manned space project and the moon carrying samples from the moon by 2017, and according to the current exploration program. It was also the first time that China design of a sample collector, two kilograms of lunar samples can be would explore another planet, Zhang said. (Xinhua) brought back, Ye said. (Xinhua) Microsoft unveils new University Science Park to become Internet search engine Bing “China’s Rubber Valley” Microsoft on May 28 unveiled a new search en- gine named Bing, renewing its efforts to challenge the The Science Park of Qingdao University of Science and Technology dominance of Google in the Internet search market. is becoming an international hub for rubber research institutes from all The company said the new service will begin over the world. to roll out over the coming days and will be fully de- Statistics show the Science Park has already attracted world’s 18 key ployed worldwide on June 3. labs and 22 scientific and technological enterprises of rubber and chemi- “Today, search engines do a decent job of help- cal industries. ing people navigate the Web and find information, but With a gross product value of nearly 200 million yuan in 2008, they don’t do a very good job of enabling people to use the park is developing into an industrial incubation base directed on re- the information they find,” Steve Ballmer, Microsoft’s search, development and transformation of new rubber materials. chief executive officer, said in a statement. “This Science Park will attract more high-end rubber institutes to “Bing is an important first step forward in our settle down, and it will develop towards China’s Rubber Valley”, said long-term effort to deliver innovations in search that Gao Qing, party secretary of Qingdao University of Science and Tech- enable people to find information quickly and use the nology. information they’ve found to accomplish tasks and Lanxess Deutschland, German leading manufacturer in plastics and make smart decisions,” he added. rubber, established its second largest Research and Development Centre Microsoft said the Bing service, billed by the (RDC) at the park. The US$16 million project moved to its second stage company as a Decision Engine, will initially focus on on May 21, 2009. shopping, travel, local business and information, and Many other companies are also setting up their projects at the Sci- health-related research — areas in which people want ence Park, including Polyurethane RDC and Qingdao International Sci- more assistance in making key decisions. ence and Technology Cooperation and Communication Demonstrative The software giant still has a long way to go to Base. increase its share in the search market. The 50-thousand-square-meter park has also become a home for the According to latest analysis by market research National Engineering Research Center of Tyre Process and Control and a firm comScore, in April this year, Google led the U.S. RDC of new rubber material. search market with 64.2 percent of the searches con- As of April, 150 million yuan have been invested in the Science ducted, followed by Yahoo of 20.4 percent, with Mi- Park where a batch of industrial enterprises continues to develop rapidly. crosoft a distant third of 8.2 percent. (Xinhua) (China Daily)

18 H e a lth

Patient may have caught flu in China

It is “highly possible” that the first domestic transmission of the A (H1N1) flu has happened in China, the Ministry of Health said on May 28. A 22-year-old man in Shanghai is suspected of contracting the potentially deadly virus from a 30-year-old man surnamed Shu, who was the city’s first confirmed flu victim. “It is highly possible that the nation has its first A(H1N1) flu case through domestic transmission as there are more and more imported cases,” said Zeng Guang, a top epidemiology expert with the Chinese Center of Disease Control and Prevention (CDC). The development came as a 26-year-old female student in Shanghai and a 25-year-old man in Fujian province became the latest con- firmed victims of the flu - bringing to 15 the total number of cases on the Chinese mainland. Meanwhile, a 28-year-old Chinese man with US nationality in Guangdong province was also suspected of having contracted the virus. He will undergo further tests to confirm the diagnosis. The man has no proven link with any confirmed cases in Guangdong. The MOH said the suspected patient in Shanghai and the confirmed patient Shu both arrived from Australia on Air China flight CA178. The 22-year-old man, who studies at a university in Australia, was placed in quarantine with 23 other passengers and seven aircraft crew after Shu was found to have a high temperature when he disembarked from the plane. The 22-year-old man began showing symptoms of H1N1 while in quarantine. On May 28 in Shanghai, a female student became the city’s second confirmed patient. Meanwhile, a 25-year-old Chinese man in Fujian province was confirmed as also having the virus. The man, who is employed in the catering business in the US, flew on Air China flight CA982 from New York to Beijing on May 24. The development came as the youngest H1N1 flu patient on the Chinese mainland, a 22-month-old baby girl, was discharged from a local hospital on May 28. (China Daily)

Medical institutions asked to ban smok- County to continue ing entirely by 2011 free healthcare trial A Chinese tobacco control organization said on May 28 that more A pilot program in which the sick are reimbursed than 20 hospitals nationwide had been certified smoke-free. the majority of their medical costs has been extended in Tobacco addiction is not only a bad habit, but a serious chronic Shaanxi’s Shenmu county. disease, Wang Chen, vice president of the Chinese Association on To- Under the program launched in March, the local gov- bacco Control (CATC) said on May 28. ernment pays for medical bills above 200 yuan (US$29) at The CATC initiated a tobacco control campaign among hospitals township clinics, and 400 yuan in county-level hospitals. starting in 2001. It also pays for medical bills above 3,000 yuan at hos- “We firmly support the government’s decision to ban smoking pitals based outside the county. No more than 300,000 yuan in medical institutions and will invite more hospitals to join the cam- can be repaid for medical bills annually per person. paign,” Zhang Jing, communication officer of the CATC, said. Shenmu has a population of 380,000 but only those Ahead of World No Tobacco Day, the health authorities have with a residential permit and who are covered by the coun- asked all medical administrations, hospitals and disease control centers ty's unified medical insurance are eligible for the benefits. to impose total smoking bans by 2011. The pilot program would continue as part of a This goal was declared by a mandate jointly issued by the Health 15-month investigation before its implementation. Ministry, State Administration of Traditional Chinese Medicine and the Lei Jiangsheng, publicity department chief of Shenmu logistics departments of the People’s Liberation Army and the People’s county Party committee, said that there had been difficul- Armed Police Force. ties with the pilot program but that it would continue any- At least half of medical institutions should be smoke-free by 2010, way. it said. Local residents welcomed the program and the num- The mandate ordered all civilian and military medical organiza- ber of hospital inpatients was 30 percent higher during tions to develop detailed plans for a ban, which would be a practical March and April than the same period last year. It was measure to fulfill the Framework Convention on Tobacco Control lower for May. (FCTC). According to the county health bureau, 2,070 inpa- The FCTC was initiated by the World Health Assembly and ap- tients received 9.6 million yuan in medical reimbursements proved by the WHA’s 192 members in 2003. China signed the conven- in March and 12.7 million yuan in April. tion in 2003 and the country’s top legislature ratified it in 2005. He Fengying, an unemployed intestinal cancer patient The health authorities asked each medical institution to establish a who is receiving treatment at Shenmu county hospital, said special work team for the implementation of the smoking ban so that a the policy was saving her life. She said her family, which nationwide network could be formed in 2010. has an annual income of 20,000 yuan, had almost been All hospital doctors should ask patients about their smoking histo- bankrupted by more than 100,000 in medical bills last year. ry during the first visit and make a note of that in the medical record, as However, she has spent just 1,000 yuan on medical well as quit smoking instructions, according to the mandate. It ordered bills at the hospital in the past 10 days. medical institutions to impose strict non-smoking regulations. “We are so lucky to be born in Shenmu, which is the The mandate specifically states that all military and civilian medi- only place in the country that has such a good policy,” she cal institutions are banned from offering cigarettes to guests. told a newspaper report. The health authorities also asked the medical institutions to or- Zhao Jie, a medical reform expert with Party School ganize non-smoking campaigns to raise public awareness of tobacco’s of Central Committee of CPC, said: “As a quest guided by danger around May 31, this year’s World No Tobacco Day. the present nationwide medical reform that urges medical China is the largest producer of cigarettes in the world, with most service supplier and acquirer to increase input, Shenmu's consumed domestically. (Xinhua) program is very positive and significant.” (China Daily)

19 A NCE IN F Bank of China to set up Brazilian branch

Bank of China (BOC), the world’s third largest bank by market value, will open its first branch in Brazil in two or three months. The move is seen as an instant response to the two countries’ plan of using their own currencies in trade transactions, the bank said in a written interview. Chinese and Brazilian governments had been discussing the possibility of replacing the dollar with the RMB and the real as trade settlement currencies since the G20 summit in London last month. “Once the two countries’ central banks reach an agreement, BOC is definitely willing to conduct trade settlement business under the agreed guidelines,” it said. BOC set up its first representative office in Brazil in the late 1990s. The bank had obtained approval from the China Banking Regulatory Commission and the Central Bank of Brazil for setting a Brazilian branch in 2007 and 2008, respectively. According to BOC, preparations for the establishment had already been finished and it is waiting for the final assessment by the country’s central bank, which is required by the banking regulations of Brazil. “China has surpassed the US to become the world’s biggest market for products from Brazil. BOC is dedicated to provide all kinds of financial services to Chinese companies in Brazil as well as Brazilian firms who want to do business in China,” said the bank. By the end of 2008, BOC had set up some 800 branches in 29 countries and regions. (China Daily)

China’s central bank stresses FDI decline “not cause for concern” credit boom should go to real economy The nation will remain one of the main recipients of foreign direct investment (FDI) this year despite a sharp year-on-year decline in April, analysts have said. Last month’s FDI was US$5.89 billion, down 22.51 percent from a year earlier, Dow Jones reported on May 14. The Min- istry of Commerce refused to confirm the report but experts said the figure would not be far off the mark. Due largely to the global financial crisis, FDI has contracted for seventh months in a row, and the decline in April is markedly sharper than March, when it fell 9.5 percent. Analysts said the April figure is not as bad as it appears if the high reference point a year ago is taken into consideration. Most analysts remain optimistic about the outlook for inward capital flows, saying momentum will start to pick up later this year as the global economy recovers. China’s central bank has asked lenders to ensure credit “We were worried about overheating earlier last year,” said goes into the real economy, saying that risk control and credit Lu Jinyong, a professor at University of International Business expansion were equally important. and Economics in Beijing. “But the business environment has “We can’t rule out the possibility that some money has changed quite dramatically since. Year-on-year comparisons do flowed into the stock market, a situation that deserves close not make as much sense now.” government monitoring,” Guo Tianyong, professor at the Cen- In April 2008, actual FDI surged 70 percent from the same tral University of Finance and Economics, said on May 15. period the previous year to total US$7.6 billion. Much of it, some He also said that at present, money velocity in China — experts argue, was so-called hot money trying to profit from the the rate at which money in circulation was used to buy goods expected appreciation of the RMB against the US dollar. and services — was slow. He said this perhaps indicated that “Given the high base last year, China should neither feel some of the money might not have gone into the real economy, too surprised nor dejected by the recent FDI figures,” said Dong but had instead flowed from the banking system directly into Xian’an, macro-economic analyst with Southwest Securities, a the stock market. major domestic securities brokerage. “There is other data show- The request was posted in a notice on the People’s Bank ing that the economy is bottoming out. And that’s the big pic- of China (PBOC) website. The country’s credit boom this year ture.” reflected the relatively easy monetary policy and helped reduce “The economy’s contraction is likely to relax in the second deflationary expectations and boost confidence to ensure stable half of the year, and it is very likely that FDI inflows will recover economic growth, according to a joint meeting of the PBOC and start to increase at the turn of the year,” Dong said. and the China Banking Regulatory Commission. Su Chang, a macroeconomic analyst with China Economic The meeting also stressed banks should better scrutinize Business Monitor, forecast that as the global situation becomes risk and ensure that money flowed into the real economy to more stable, China’s FDI performance will improve in the next meet the capital demand of industrial restructuring. Banks few months. Lu estimated that China’s FDI will be around should continue to improve credit structure and capital ad- US$80 billion, not too drastic a drop from last year’s US$92.4 equacy. billion. Chinese banks lent RMB 5.17 trillion (US$760.29 billion) Even with an expected FDI decrease, “China will be one of in the first four months of the year, exceeding the RMB 5 tril- the few bright spots in the world,” Lu said. According to a white lion full-year target set early this year. Liu Yuhui, an economist paper on American business in China released last month by the with the Chinese Academy of Social Sciences, said that new American Chamber of Commerce, 22 percent of American com- bank loans could reach about RMB 9 trillion this year. panies said China was their No 1 global investment destination. The PBOC said in its quarterly monetary report on May Between 75 and 78 percent ranked the country as one of their top 6 that China’s economy had done “better than expected” in the three investment destinations every year since 2004. (China Daily) first quarter and pledged to maintain “ample” liquidity in the financial system to ensure economic recovery.(Xinhua)

20 I nve s tment

China to encourage overseas investment with easier procedures

Outbound investment of Chinese enterprises may be expanded as China’s foreign exchange regulator said on May 18 that it plans to simplify examination and approval procedures for domestic companies’ investment abroad. The State Administration of Foreign Exchange (SAFE) posted on its web site a draft regulation on foreign exchange management involving domestic enterprises investing abroad, to solicit public opinions. According to the draft, domestic companies will be allowed to register the source of their foreign exchange financing after their investment overseas instead of obtaining approval beforehand. The draft regulation also allows domestic enterprises to seek financing from more sources, including domestic foreign exchange loans, purchasing foreign exchange with RMB, the foreign currency funds enterprises possess, and their profits gained abroad. SAFE will also improve its supervision over overseas investment by carrying out annual inspection on investment projects to- gether with the Ministry of Commerce, said the draft. The draft regulation is aimed at facilitating and encouraging Chinese companies to invest abroad, and standardizing management of foreign exchange involved in such investment, said SAFE in an announcement which came along with the draft. China’s outbound direct investment reached US$55.6 billion in 2008, up 194 percent from a year earlier. (Xinhua)

Chinalco-Rio Tinto deal gets approval from U.S. regulator Lower industrial land prices to boost investment A U.S. regulator granted clearance to Rio Tinto regard- ing the proposed issue of convertible bonds to Aluminum Corp. of China (Chinalco) and the indirect minority in- vestment in Kennecott Utah Copper Corp., Chinalco said on May 14. The approval was given by the Committee of Foreign Investment in the United States (CFIUS), said Chi- nalco, China’s largest aluminum producer. In February, Chinalco signed to invest US$ 19.5 bil- lion in the iron ore giant Rio Tinto of Australia, the world’s third-largest mining company, to secure resource supplies for China and help cut Rio’s heavy debt. Under terms of the planned deal, Chinalco will invest US$7.2 billion in convert- ible bonds and US$12.3 billion in Rio Tinto iron ore, copper and aluminum stakes. This follows receipt of approvals from the Australian Competition and Consumer Commission on March 25 and the German Federal Cartel Office on March 31.(Xinhua) China’s Ministry of Land and Resources has announced a 30-percent cut in the minimum purchase price of land for indus- trial use in order to boost investment. Review into investments by SOEs However, the statement on the ministry website on May 14 failed to say when the cut would take effect. The move would China’s state-owned asset regulator will launch an in- “further implement the government’s policy of boosting domes- vestigation into investments made by centrally administered tic demand and push forward steady and rapid economic devel- state-owned enterprises in the financial sector in a bid to opment,” said the statement. help them avoid risks. The new rule will apply to investments that make intense A total of 28 SOEs, including Air China, China Eastern use of land and those involving the processing of agricultural, Airlines and China COSCO Holdings Co, have invested in forestry, animal husbandry and aquatic products. financial derivatives but most of them suffered losses. The ministry set minimum prices for industrial land use in The overriding concern of the SOEs, when they invest January 2007 to curb the selling of cheap land-use rights for in- in financial derivatives, is to ensure they avoid risks and not dustrial use to attract investment and seek a higher GDP growth. to speculate, said Li Wei, vice director of the State-owned The price ranged from RMB 60 (US$8.77) per square meter in Asset Supervision and Administration Commission. some counties in northwestern Xinjiang Uygur Autonomous Re- Air China lost RMB 7.5 billion (US$1.1 billion) on gion to RMB 840 per square meter in the suburbs of Shanghai, fuel-hedging contracts by the end of last year, and China China’s largest metropolis. Eastern’s wrong-way bets on hedging dragged its revenue Wang Xiaoying, researcher of the Chinese Academy of down RMB 6.4 billion. Social Sciences, said that industrial investment had contracted Li said SOEs which plan to invest in financial deriva- because of the economic slowdown, which dragged down the tives must meet four conditions - abiding by hedging rules, demand for industrial land. hiring financial institutions for consultation, controlling The national average industrial land price was RMB 721 risks and getting the commission’s approval. per square meter in the first quarter, down 1.08 percent from the “SOEs are short of financial talent to deal in such in- fourth quarter of last year, and down 1.1 percent year on year, vestments, which led to an underestimation of risks and according to the ministry. violations, so the commission will issue suggestions after an Zou Xiaoyun, deputy chief engineer of the China Land investigation,” Li said. The SOEs have seen their first annual Surveying and Planning, said the new rule would help reduce decline in net profit last year since 2002, diving more than cost for enterprises, and stimulate them to expand investment, 30 percent from a year ago to RMB 665.29 billion. (Shanghai especially for new projects. (Xinhua) Daily)

21

pecial report S

lectronic Information Industry: ECalls for Upgrade and Reform Yang Wei

lectronic information industry is a fundamental and strategic pillar industry in China’s economic progress. With the feature of labor-intensive manufacturing, this industry has developed to be a competitive one of China by few decades of quick growth in large scale, boasting a high degree of marketization and internationalization. Take color TV manufacturing sector as an example, the annual producing value of the sector is close to RMB 200 billion, tak- ingE up 23% of national total value of the electronic information industry. However, the current international market demand is falling sharply, calling for a further adjustment in global electronic information industry. On February 18, 2009, Chinese government reviewed and approved the electronic information industry revitalization plan, focusing on encouraging industrial innovation and consolidation and on boosting the competitiveness of the domestic electronics and information technology sectors. The government will assist the electronics and information sectors with trade financing, investment, credit guarantees and continued export-tax rebates. The plan promises to conduct integrated circuits upgrading, industrial transformation of color TV manufacturing, the third generation mobile communication industry, the popularizing of new digital TV, the preva- lence of computer application, and the next generation of the Internet and information service software engineering. Enter- prises’ M&A are also encouraged. According to experts’ analysis, the revitalization plan is of large benefit to communication equipment industry (includ- ing the 3G and broadband), electronic industries, TV manufacturing and the software industry, meanwhile, will promote the growth of domestic demand and service out sourcing industry. China is planning to speed up the industrialization of new flat panel display device, encourage research institutes along with TV manufacturing, material, chemical enterprises to establish an industry alliance. At the same time, the government will support and promote cooperation among electronic enterprises to participate in international market. Reform and up- grade are in need to cope with the raising new trend of global trade protectionism. What further steps will China’s electronic information industry follow? The Special Report column this issue tells more.

24 tax, the sale volume of influenced TV sets from the four companies in USA dived. However, according to the official ncounters statistics from USA government, from 2001 to 2003, the period of antidumping investigation against imported Chinese & Responses TV sets, the whole color TV industry in USA was good, and the US companies in this industry showed a good compet- Trade Protectionism ing ability and maintained smooth de- velopment, against the competition from E imported Chinese products, except Five — Export of Chinese Electronic Products Rivers, the having declined and the only local brand of USA. As to the influence to Cao Naicheng USA color TV sets producers caused by imported products, the Chinese played a very limited role, as both the amount and the value were low. During that period, some US color TV set producers encoun- tered small difficulties in production and operation, but the difficulties were more with the applicant, Five Rivers. So, the an- tidumping investigation against Chinese color TV sets was a measure to protect Five River’s value, more than to prevent this industry from damage. According to US Supreme Court, the intention of Robinson-Patman Act was to protect free competition but not a single competitor through antidumping mea- sures. However, in practical cases, the rul- ing may run counter to the original inten- tion. This antidumping case taught a les- son to the electronic products exporters in China that the so-called victims of dump- ing Chinese products are the political constituency of the government officials, and the real victims are Chinese suppli- fter several months’ downtrend, the export market of Chinese flat-panel TV ers who weigh nothing to them. However, began to recover in the first quarter, with 5.815 million LCD TV sets ex- antidumping measure is a double-edged ported to overseas, increasing by 17.7% from the same time of a year ago, sword, meaning the common consumers and 132,000 plasma TV sets exported, up by 1.5% with the same comparison. in USA are also the victims of the case, SinceA the later half of 2008, export volume of color TV sets from China continued to as they can no longer buy low-priced and decrease, making the exporters of such products in China really touch the influence of good-quality China-made color TV sets. economic crisis. In February of this year, Buy American Act was adopted by US Con- Though the export market of Chi- gress, which reminded of the Smoot-Hawley Tariff Act in 1930s. To deal with the eco- nese flat-panel TV sets recovered a bit in nomic crisis then, the US government issued Smoot-Hawley Tariff Act, and highly lifted April, the economic recovery in USA was the tariff tax for over 2,000 types of products. Not long after the act, many countries slower than the expected, which may lead like UK, France, Germany and so on took retaliatory measures against USA, leading a to new trade conflict. In last December, the shrink of about 66% in international trade in 1934, compared with that of 1929. Though USA appealed to WTO, saying that China the Americans surely know that such an act of trade protectionism may cause a coun- violated the WTO rules as the govern- terproductive result, they passed it, reflecting that they are in a desperate situation. As ment provided subsidy to textile, fridge important suppliers to the USA, Chinese electronic products exporters may be affected and chemical products and other products. by the new trade protection measure, Buy American Act. In early February, EU declared to add a The TV sets exporters in China may not forget the experiences in 2004. On May temporary antidumping tax up to 25% to 2, 2003, three color TV set manufacturers in USA, Five Rivers, IBEW and IUE-CWA, China-made steel wire rod. All these are applied to DOC (Department of Commerce) of USA for an anti-dumping investigation. signs of a new wave of trade protection, The three companies complained that the selling price of Chinese 25-inch color CRT TV and more challenges may be waiting for the in USA was far below the market prices, which violated Item 731 of 1930 Tariff Tax Act, electronic products exporters in China. and practically harmed local industries. The US DOC and ITC had an immediate anti- Though realizing the spread of trade dumping investigation against some types of imported color TV sets from China, and protection will severely slow down the eco- ruled that the complain was true and the dumping existed, meaning the involved Chinese nomic recovery, even the world economy, TV sets were sold at a price below the normal market price, which practically harmed lo- new types of trade protection come to surface cal industries. Soon after, DOC ordered the US Customs to add an anti-dumping tax up in major trade countries. Now, non-tariff to 78% to the involved Chinese TV sets arrived in USA from June 3, 2004. trade barriers are often used to protect local When received the final decision from US Department of Commerce and Interna- companies, and new barriers are introduced, tional Trade Committee, the leading color TV sets exporters in China includng Chong- such as technical barriers, environmental hong, XOCECO, TCL and KONKA appealed to United States Court of International protection barriers, and social responsibility Trade, but US DOC and ITC maintained the former ruling. Due to the anti-dumping barriers and so on, under the frame of WTO.

25 With the traditional tariff measure no longer qualified to prevent the inflow of high tech products, to prevent local indus- tries, governments turn to technical barriers. Under the reason of protecting consumers’ health and safety, the governments pecial report establish stricter technical and performance standards and qual- S ity standards for imported mechanical and electrical products. EU was the first trade unit who introduced technical barriers against electronic products, referring to CE mark, the passport for industrial products to EU market. Any EU customs can re- ject electronic products without a CE mark. USA issued Health and Safety Act on Radiation Control against imported electronic products. Japan also formed various technical standards and laws, many of which are higher than international standards. Till now, EU has had more than 100,000 technical standards, and Japan has 8,184 industrial standards, while USA has countless technical standards and laws, many with much stricter standards than the requirements of normal trade. Based on the technical ad- vantage, some countries make rigorous technical standards, laws the vicious price competition. There are many industrial associa- and technical certification systems, to realize the target of trade tions and organizations in China, and they should coordinate the protection though technical barriers. companies in this industry, prevent vicious competing actions and On the grounds of environment protection, developed coun- organize the companies against the foreign trade barriers. The tries have set up environmental protection barriers, such as ad- companies should rely on the associations, and join together for ditional tax for environment protection, to prevent the inflow of more strength. low-priced foreign products. EU set up ISO14000 environmental Third, construct an export alert system. Entering WTO, management system, asking the production, sale, usage and re- China is more often encountering trade barriers, and some indus- cycling and so on of the imported electronic products to meet the trial and governmental organizations have begun the construc- strict standards for environmental protection. Other countries tion of export alert system. The concerned departments of the follow. USA establishes UL and Green Cross certificates, Canada government and industrial associations should strengthen the carries out ECP certificate. Some countries ask manufacturers to propaganda and training, and boost the system construction and count the fee for environmental pollution control into cost system. improvement, helping exporting companies in China to respond Otherwise, these companies will be considered to carry out eco- the trade protectionism rightly and quickly and improve their dumping, and will be levied environmental anti-dumping tax. self-protection. These rigorous standards and certificates are headache problems Forth, export companies should improve the ability in for electronic products exporters in China. responding the complaints. The export companies in China have Some developed countries connect the international trade not got familiar with the foreign trade barriers, and can’t play with social responsibilities as labor standards and public welfare their roles as respondents. Once an anti-dumping case against and so on, building up a barrier called social responsibility. For Chinese products comes into place, the involved exporting com- example, Social Accountability 8000 (SA8000 for short), a man- panies should actively respond, with the knowledge that only agement standard system mainly involved in protecting working responding can break the trade barriers and protect the legiti- environment, condition and labor rights. In name of strengthen- mate rights and interests of their own. Meanwhile, we need to ing companies’ social responsibilities, through SA8000 certifi- strengthen the training of international trade talents, and reserve cate, some countries are connecting trade with issues of human professional capable of dealing with foreign trade barriers. rights, to limit the inflow of low-priced products from undevel- Fifth, we should actively participate in the drafting and ad- oped countries. justments of international standards, to make and renew the related The H1N1 flu that is annoying the world at present is also industry and product standards in China. The related departments taken as a measure for trade protection. Still, some hidden trade in the governments and industrial associations and agencies should protection methods are adopted by western countries intention- strengthen the communication and cooperation with various inter- ally or unintentionally against China-made products, through national standard organizations and participate in the drafting and discrediting China and Chinese products on media. This may be adjustments of international standards, to have a better position not a trade protection measure, but the media actually ruins the against the technical barriers. At the same time, we should renew image of China-made products and indirectly protects local in- the knowledge of the trend of international technical standards dustries. So, this method is becoming popular. and technical barriers, and then lift the technical standards for As the major developed countries are struggling against the China-made products, making them meet the requirements from influences of financial crisis, the electronic products exporters in developed countries, while help more companies gain the related China should hold on their target, positively respond to the pos- international quality systems’ certificates. That the exporting com- sible trade protection measures, and maintain a smooth increase panies try to meet the international standards can improve their in exports. competing ability in world market, and also stimulate the compa- First, the exporters should upgrade their products. In re- nies in China to close to the higher product standards, boosting the cent years, we have made great progresses on improving products development of Chinese industries, and protect domestic consum- quality and grades, but in general, China is still a low-end prod- ers’ legitimate rights and interests. ucts supplier, wining the international market through low prices. Though world economy is still under the influence of eco- To secure a long-term competing ability and higher profits, the nomic declines, the international environment is severe and there exporters in China, especially those electronic products exporters may be trade barriers, Chinese export companies should be con- should modernize their core technology, strengthen the R&D and fident, as there are chances. innovation ability, and add more technical and brand and other added value to the products, in order to improve the international (Author: MBA and Master of Engineering, a consultant image of China-made products. of Allpku, who is engaged in international trade and inter- Second, the industrial associations and organizations national management study for years, and has a unique should play their role of organizing and coordinating, prevent insight of trade protection through non-tariff barriers. )

26 export maintain a stable and rapid growth, but in the second half of 2008, the growth rate slowed down. In the first ten months of 2008, the total import and export vol- ume of electronic information products reached US$754.84 billion, up 17% year- An Overview of the Electronic on-year, the growth rate was down 6.9% year-on-year, and down 7.4% over the growth rate of national commodities im- Information Industry in 2008 port and export. The export of electronic information industry reached US$440.14 billion, up 20.5% year-on-year, the growth rate was down 6% year-on-year, and down Ji Yang 1.4% over the growth rate of national ex- port trade. Zhongguancun, the "silicon valley" of China. Industry structure readjusted In-depth industry structure adjust- ment took place. Software and compo- nents industry maintain rapid develop- ment. As for growth rate, in the first ten months of 2008, the growth rate of software industry is 31%, up 13.4% over the whole industrial average growth rate; the growth rate of electronic devices is 29.2%, which is up 11.6% over the whole industrial average growth rate; the growth rate of electronic components is 22.1%, up 4.5% over the whole industrial average growth rate. As for proportion, the income of software industry accounts for 13.6% of the industry in the first ten months, up 1.3% year-on- year; the income of electronic components industry accounts for 28.6% of the total industry, up1.7% year-on-year. High-end products enjoy rapid develop- ment. LCD TV, PDP TV, flat panel TV and notebook computer enjoyed a larger market share than ever before in display ith European, American and Japanese economies still in recession, exter- market and microcomputer market. nal demand remaining weak, total revenues of China’s electronic informa- Growth rate of Midwest area over- tion industry witnessed a decline in the first four months of 2009, sliding 2.2 took that of the East in 2008, as the percent year-on-year, according to statistics released by China’s Ministry Midwest area went through an industry Wof Industry and Information Technology on May 22. transfer. In the first ten months of 2008, Since 1978, China’s electronic information industry has been advancing at a high the income of electronic information speed, having far-reaching and favorable influence on other branches of the national manufacturing in east China reached economy. After experiencing a long term of fast development, China’s information in- RMB 3793.48 billion, up 14.6% year- dustry now is facing a unfavorable situation. This article will provide an overview of the on-year; the income of western region information technology industry in 2008. reached 104.74 billion Yuan, up 37.9% The slowing down of growth rates in all aspects year-on-year. The growth rate in western region is up 23.3% over the growth rate Growth rate of production slows down. The production of mobile phones in China in eastern region. The income of central in first ten months of 2008 reached 479.517 million sets, up 6.7% year-on-year, and the region reached RMB 157.33 billion, up growth rate is down 18.9% year-on-year; the production of microcomputers reached 29.5% year-on-year, whose growth rate is 119.298 million sets, up 17.1% year-on-year, and the growth rate down 19.5% year-on- up 14.9% over eastern region. year; the production of IC reached 36.23 billion sets, up 6.9% year-on-year, and the growth rate is down 9.5% year-on-year. The market of traditional electronic products Lose or win, it is tied up with the shrink further -- the output of fax machines is down 10.6% year-on-year; the output of global economy VCRs is down 21.6% year-on-year. In the first half of 2008, enterprises The growth rate of information technology is lower than national industrial average suffered increasing cost pressures. The growth rate. In the first half year of 2008, the growth rate of electronic manufacturing continuous increase in prices of interna- industry experienced a slight rebound, and reached its summit in June. But in the third tional bulk commodities led to a global quarter of 2008, the industry growth rate declined rapidly, and by the end of October, the inflation as many European and American main business income of manufacturing with over RMB 5 million scale was up 15.7% developed countries’ inflation reached year-on-year, but the growth rate was down 5% over the growth rate in the first half record levels in recent years. Imported in- of 2008, and that the growth rate was down 10.7% over the national industrial average flation pressure as well as internal factors growth rate. in China’s economy led to increasing PPI, Growth rate of export and import slows down, which is lower than the growth rate which led inflation to reach new heights in of national foreign trade. In 2008, China’s electronic information product’ import and ten years in August. Rising PPI resulted in

27 The influence of financial crisis is obvious in the third and fourth quarters in 2008. The growth rate of electronic equip- ment manufacturing’s income in the first nine months of 2008 decreased by 3.1% year-on-year (the manufacturing scale is over pecial report 5 million Yuan). The growth rate in 2008 Q3 decreased rapidly, S which shows that the global crisis has greatly impacted the Chi- nese electronic information industry. With European, American and Japanese economies still in recession, external demand will remain weak. As for domestic demand, China is launching a series of measures to boost internal demand, but their effects are yet to be seen, especially that these measures focus more on the financial sector and infrastructure and that the actual results will first be reflected in the investment field before benefiting consumption. On the other hand, manufacturers will be further relieved from cost pressures as commodity prices continue to fall, and prices of petroleum, mineral products and nonferrous metals have decreased by over 50%.It is forecasted that PPI will present downslide trend in the next few months. Lowering the price is not the only way for living increasing cost pressures for the electronic information industry. China’s mainland electronic manufacturing has cost advan- On the other hand, average retailing prices of electronic products tage worldwide, but its operation efficiency is much behind that of continued to fall. Rising costs and decreasing product price mean Japan and China Taiwan. China’s electronic information industry there is smaller room for profit, which is reflected in the net and should eliminate its backward capacity and improve manufactur- gross profit rate of Lenovo, ZTE, BOE, and other IT enterprises. ing efficiency. On the export side, in the first half of 2008, export fluctuated Generally speaking, China’s electronic information industry but did not record an obvious decline, which in the second half of takes on an extensive growth, driving by export and investment. 2008 showed a much sharper downturn trend. The growth rate in Lowering the cost has been a major competition method in the June was 23.6%; but the growth rate in August, September and Oc- development of China’s electronic information industry. How- tober were respectively 22.5%, 21.7% and 20.5%. In the second half ever, this development mode has been not as smart as before in of 2008, the gradual recession in European and American economies recent two years. Long term development of China’s industry led to the gradual decline in China’s electronic information products, should turn to technology innovation and opening of domestic which seriously the industrial development due to a large reliance demand. on exports, as showed in the 2007 statistics that the whole electronic information industrial export dependency index was about 60%. (Author: graduated from Law School of People University)

ountryside, CRocky Road for Home Appliances Guo Liqin, Li Zhen

or 10 years, the most valuable household appliance also enjoyed a 13-percent subsidy, worth RMB 253, from the in herdsman Chao Lu’s home in north China’s In- government. “With the money saved, I could buy more than ner Mongolia was the 14-inch TV set, purchased 10kg of mutton. It looks as if the government has sent me a when he earned about RMB 4,000 (US$580) a year, special gift for the Spring Festival.” The “Home Electrical reportedF by Xinhua. “I could not bring myself to buy a new Appliances to Rural Areas” scheme has been operating on TV set, although the old one often failed to work properly. an experimental basis for one year. Subsidies have been al- I had to support a family with very little money.” Now the located to farmers in the provinces of Shandong, Henan and old TV has been replaced by a 26-inch LCD color set. “The Sichuan since December 2007, and 3.5 million home appli- new TV set looks great. Sharp images and good sound make ance sales have been made in these provinces since the end it worth the money,” says Chao Lu, 33, who paid RMB 1,950 of October 2008, according to Ministry of Finance statistics. (US$285) for the set in Taipusi Banner, Xilinguole League, Chao Lu was just one of the farmers who bought their TV two days before last month’s Lunar New Year holiday. He sets under the scheme.

28 However, not every one is enjoying the bonus, Gao Wan- volume, according to Zeng Xiao’an. But this means nothing to sheng, a farmer in Linyi, Shandong Province wanted to buy a those rural dwellers that live on income from manual works in refrigerator. But on the two occasions he tried to make the pur- the cities. chase he was told the model he wanted was out of stock. This is The huge market potential of China’s rural areas has fo- because there is a narrow profit margin on such appliances. An- cused the attention of both domestic and overseas home electri- other deterrent is the complex procedure involved in obtaining cal appliance companies. Haier produces wider voltage water- the subsidy. It requires submitting the receipt for the merchan- proof TV sets to meet the demands of rural consumers, and dise, ID, purchaser’s bankbook and various other documents Siemens has also invested heavily in promoting its products in to the local finance department. The application must then be the countryside. Companies that win the rural market will be approved at various levels. The subsidy is eventually deposited the market leaders of the future, according to vice director of to the farmer’s bank account. Yang Hong believes more farm- China Home Electrical Appliance Association Jiang Feng. ers would be willing to take advantage of the policy if the pro- cedure was simplified. According to government regulations, electrical appliances must be delivered to farmers’ homes, especially those in remote mountainous villages. But repairs prove to be a big problem. “A TV set or washing machine that has broken down can be only fixed in the town. But I live 15 km away from the town and transporting a TV set that distance on dirt country roads is a major inconvenience,” Shi Yunguo said. Are simplified procedures really work? According to Xinhua, recent simplified procedures for farmers to get subsidies on purchases of home electrical ap- pliances had spurred sales of the products throughout China. Subsidized home-appliances sale in rural areas is part of China’s efforts to sustain economic growth amid the interna- tional financial crisis through stimulating domestic consump- tion. China began to spread the campaign to the whole country as of the end of last year. According to Zeng Xiao’an, deputy head of economic construction department of the Ministry of Finance, the first quarter of this year saw China sell nearly 6 million home electrical appliances in rural areas, with a month- on-month growth rate of more than 70 percent in each of the first three months. Zeng said the subsidized sale at home also helped struggling domestic electrical appliances manufactur- Commercial concerns have neglected the rural market in ers to survive the international economic downturn which had the past owing to the sluggish countryside economy. Chen Xi- driven down their exports. The subsidized sale targeted at farm- wen, deputy director of the Office of Central Rural Work Lead- ers cover color TV sets, refrigerators, washing machines, air ing Group, believes that whenever a crisis such as the present conditioners, water heaters, personal computers, mobile phones, global financial crisis hits, the focus of Chinese business shifts microwave ovens and induction cookers. Price caps are set for to the rural market. And as President Hu Jintao stated: “We these products. The rebate to the consumers is shouldered 80 need to increase domestic demand and take diverse measures to percent by the central fiscal government, and 20 percent by pro- boost the economy and counter the risks of global economy.” vincial fiscal governments. The 13 percent subsidy, however, is a paltry saving for Under the new program, more than 900 million farmers are most low-income farmers. The cheapest refrigerator costs RMB eligible for a subsidy equal to 13 percent of the prices of home 1,090, so even with the RMB 141 subsidy there is still a balance appliances they bought. The four-year policy was designed to of RMB 949 to pay, which no small sum is taking into account stimulate rural consumption to boost domestic demand as ex- that the average annual income of a rural family in 2007 was ports weaken amid the financial crisis. Increased sales could RMB 10,000, according to Ministry of Agriculture statistics. also help home appliance manufacturers upgrade their busi- Also, “Few young people are willing to do farm work now be- nesses and fare better in the economic downturn. cause they can earn more by doing manual labor in the city,” An estimate by the Ministry of Finance earlier this month according to a publicity department official in Linyi, Shandong showed sales of up to 600 million home appliances in rural Province. China by 2012, or during the four-year implementation of the A large proportion of rural surplus labor force moved to policy. The plan is expected to spur domestic spending by cities in the 1990s. But the countryside is now regarded as a RMB 1.6 trillion (US$234 billion). Wang Bao’an, an official huge consumption market just waiting to be exploited. Farm- with the ministry, said the program was the first time the coun- ers, however, are thrifty by nature. Shi Yunguo, for example, try has leveraged its fiscal subsidy instrument for the consumer regards spending RMB 1,000 on a TV as a luxury, with or market. He also expected the project to help upgrade rural without the subsidy. Farmers, however, are thrifty by nature. quality of life. Farmers see no great need for home electrical appliance, and would think very hard before making such a purchase. As Wang Can countryside offset the trade imbalance? Yiguo from Hunan Province, who does manual work in Beijing China is now the world’s largest home electrical appli- to earn his daughter's tuition fee, says, “It’s good to have a sub- ance producer. The export volume of color TVs, refrigerators, sidy when buying a refrigerator, but we just don’t need it.” washing machines and mobile phones in 2007 reached US$57.9 billion, and constitutes a main source of China’s large trade Globalization? A Definite road to go? surplus. Export growth has made great contributions to China’s A’senior expert in M&A told China’s Foreign Trade, “Country economic development in the past decades, but is dwindling side is not a easy way to go by ambitious home appliance enter- under the current economic crisis. Popularizing home electri- prises, A better way for them is to M&A in bigger platform - com- cal appliances in rural areas, however, offsets the falling export peting in global market. It is a definite road for them to go.”

29 CITY

the Magical Mountain

uangshan City is destined to be one of the most visited tourist destinations in the 21st Century. Because of its majestic creation of nature, its more than 2,000-year history, and its flourishing Huizhou culture, the city boasts a multitude of tourist attractions, including the world-famous Mt. Huangshan (YellowH Mountain), the well-preserved ancient villages, crystal Lake Taiping and Qiyun Taoist Mountain and so on. Old residences, archways, clan temples, ancient bridges and pagodas are abundant. Mt. Huangshan Of all the notable mountains in China, Mount Huangshan, to be found in the south of Anhui province, is probably the most famous. Originally known as Mt. Yishan it was renamed Mt. Huangshan in 747 AD in recognition of the legendary Huang Di, who was the reputed ancestor of the Chinese people and who made magic pills for immortality here. Mt. Huangshan is a magical mountain, it’s like a perfect unfolded Chinese landscape painting. Wherever you are at this charming mountain, you always have something to enjoy. Situated in southeastern China, Mt. Huangshan (Yellow Mountain) is famous for the uniquely shaped pines, the fantastic rock peaks, the sea of clouds and the hot springs. The mystic clouds drift in and out, changing the scenery from minute to minute as the mist rises and ebbs; the beauty of Huangshan also varies with the seasons. Each of the four seasons on Mt. Huangshan has their respective beauty but even this can vary from day to day thanks to variations in the weather, light and shade as clouds pass overhead and even around you at the higher reaches. This endless changing adds an emphasis to the wonder of the landscape and to know the mountain thoroughly, you would need to visit Mt. Huangshan in all the different seasons.

● Summer It is hard to resist the charm of the cool green mountain sides in summer when an

30 exuberance of plant life covers the valleys Peak. If the top of Peak Sleeping Cloud In addition to the spectacles we have and peaks with a green blanket. The green or Peak Start-to-Believe is too crowded mentioned there are three large waterfalls trees and ivy mingle to form natural or dangerous for you, you have a perfect that are well worth a visit. These are pavilions where you can sit and refresh alternate: keep walking a few minutes Renzi (like the Chinese character for yourself while enjoying the beautiful down to Shisungang where you can enjoy human being) Waterfall, the Baizhang scenery with a cooling breeze to sooth a quite and wide spectacle: deep valleys, a (100 zhang, over 1,093feet) Spring and the you. cluster of slim peaks, a stone resembling a Nine-dragon Waterfall. Dawn in summer is most splendid person with a cap and in a backpack, Peak Also, Mt. Huangshan is an ideal as the rising sun lights the sky and the Goddess of Mercy and Peak Buddha’s environment for wild animals and plants. peaks and the plants and the whole world Palm. The distribution of the animals and plants takes on a brilliant glow. After a storm, At Dawn-Light Pavilion, you can changes with elevation. Flowers bloom Mt. Huangshan becomes a world of see a group of interesting rock. On as though in all the four seasons due to water. Numerous streams and waterfalls Refreshing Terrace you can view a fan- the change in climatic conditions as you compose an exciting and vigorous shaped pine cling to the cliff beneath the proceed up the mountain. So if you are symphony. terrace, a nice crowd of pines, a column fond of animals and plants, be prepared to The Sea of Clouds during this season of stone looking like a person with a encounter some precious ones here. is not as vast as during autumn or winter pig head, Peak Rooster and Peak Rise but it revels in its brightness. If you are surrounding you. Before you reach the Huizhou Culture really lucky you will see a vivid rainbow top, there is Millennium Bell everyone Huangshan City is not only noted flying over two peaks. Sunset is no less can hit it for fun, but every hit will cost for its charming natural landscapes but enchanting than sunrise. Mt. Huangshan you RMB 2. also celebrated for its ancient history in summer is the best resort in which to On the top of Lion Peak, you can see and culture. In fact, Huangshan City is a escape high temperatures of southern a rock resembling monkey on the flat top national park and a museum where you China. of another hill, that’s very famous rock: A can enjoy natural beauty and explore its Monkey gazing at the sea when there is a centuries-old history and glorious culture. sea of cloud, or A Monkey gazing Taiping Hangshan City has a history of County when there is no cloud and mist. over 2,200 years. Its two oldest counties, Tips: Shexian and Yixian, were established ◙ July and August are among the ● Hot springs during Qing Dynasty when the system peak seasons therefore reservation is a To be able to refresh yourself in the of prefecture and county took shape. must. hot springs on Mt. Huangshan must be Huangshan City was formerly called ◙ It is wise to bring a rainproof one of the best ways of enjoyment and Xin’an Prefecture, and later Huizhou jacket with you as the strong wind on relaxation. Running out of the Purple Prefecture until it got current name in 1987. the mountain renders an umbrella all Peak of 850 meters (2, 789 feet), the hot but useless and even dangerous. spring in Mt. Huangshan is the first stop ◙ Do not climb the mountain following the entrance. Legend has it that during thunderstorm. Huang Di, the ancestor of the Chinese nation, bathed here 49 days before ● Best times and locations from he ascended to heaven and became which to see the sunrise on Mt. Huangshan immortal. The best east-facing viewing areas are Dawn Pavilion, Refreshing Platform, Lion Peak, Rosy Clouds Peak, Bright Peak Summit, Jade Screen Peak, Lotus Tips Blossom Peak and Heavenly Capital ◙ Hot spring is not suitable for Peak; everyone. If you suffer from high blood Best times to view a sunrise: pressure or heart diseases, it would be Spring — 05:30-06:00 wise to consult your doctor first. Summer — 04:40-05:10 ◙ Do not bathe in the hot spring if Fall — 04:50-05:20 you do not feel very well or when you Winter — 05:30-06:00 are hungry. ◙ Leave the hot spring whenever ● Beihai Scenic Area you feel uncomfortable. When you ascend the mountain either along east steps (back path) on foot or by Yungu Cable-car, you reach White Goose Ridge at first, then walk downstairs to Start-to-Believe Peak of the Beihai Scenic Area. Along the way you can see several famous Huangshan pines: Black Tiger Pine, Couple Pine, Dragon’s Claw Pine, Crouching-Dragon Pine and graceful Harp Pine. Before you climb to the top of Peak Sleeping Cloud or Peak Start-to- Believe for a breathtaking outlook, you surely take a picture of Bamboo-Shoot

31 CITY

Situated in a remote and picturesque with traces of Shan’yue Culture, is an mountainous area, Huizhou escaped important part of Chinese Civilization. many wars and battles throughout history. As a matter of fact, Huizhou Culture Refugees from the Central Plains came has become one of the three main fields into this area and brought with them the of the Chinese Culture (Han) Study, the Han culture starting from the Sui and other two being Dunhuang and Tibetan Tang Dynasties. Many refugees were Cultures. This is why more and more famous for their achievements in art, scholars form home and abroad turn their medicine, architecture and craftsmanship. attention to Huizhou Culture, and many Under their inf luences, Huizhou has visitors have come to this area to examine become known as a remarkable place for the historical sites and relics. producing great scholars, painters, artists So far, more than 4,900 sites and and merchants. relics were found, among which, 57 sites The contributions of these talented are listed as key units under the state or and industrious people, together with the provincial protection. The best known 2200-year history, have brought about sites are the Qiankou Ancient Residence the glorious and magnificent Huizhou (in Huizhou District), Xugou Memorial Culture (also known as Xin’an Culture) Archway and Tangyue Archway Group which can be represented by Xin’an (in Shexian County), Xidi Village and Philosophy, Xin’an Medicine School, Hongcun Village (in Yixian County), Xin’an Painting School, Huizhou School and etc. The classic, elegant design of the of Woodblock, Huizhou Seal School, buildings and the ingenious, magnificent Huizhou Commerce, Huizhou Opera, layout of the landscapes are outstanding Huizhou Cuisine, Huizhou Sculpture and in its own way. Huizhou Style Architecture. This culture, originated mainly ● Tunxi Ancient Street from the Central Plains (an area which Tunxi Ancient Street is situated in comprises the middle and lower reaches the center of Tunxi District, the location of the Huanghe River) and integrated of Huangshan City Government.

32 brushes, ink sticks, ink slabs and paper are displayed or for sale on the first floor. Here you can find the biggest inkstone weighing more than 12,500 kilograms (about 27,558 pounds). Cultural relics and other artworks collected by the owner of the museum are exhibited on the second floor. Along the street there are many shops that have existed for over one hundred years. Curios and knick-knacks including inkstones, brushes, local teas, and Mao badges can also be found. It is a paradise for tourists to buy souvenirs rich in Chinese culture with comparatively lower prices.

● Xidi and Hongcun, the ancient villages with cobbles or black stones. Located in Yixian County, Xidi and Lying about 10 kilometers (6 miles) Hongcun Ancient Villages were listed northeast of Yixian County, Hongcun The street with centuries-old history as World Heritage Sites by UNESCO in Village enjoys the reputation of “a village dates back to the Song Dynasty (960- 2000. These two villages are the most in the beautiful Chinese picture” because 1279). Emperor Huizong (1082-1135) representative local-style residences in of its location at high altitude and being moved his seat of government to Lin’an southern Anhui Province. shrouded by clouds and mist. It has about (now is Hangzhou), when many architects Construction of Xidi Village began 137 Ming and Qing style residences. and workmen were conscripted to during the Northern Song Dynasty (960- Built with pink walls and black tiles, construct the new capital. After returning 1127). So far, it has a history of over all the residences are better arranged. to their hometown, they imitated the 900 years. The village is famed as being Among them, the Chengzhi Hall is the structural style to build architecture the “Ming and Qing Dynasty Local most representative and is praised as along the street, so Tunxi Ancient Street Residence Museum”. It has about 124 the “Folk Imperial Palace”. Numerous was formed. ancient residences and three ancestral varieties of figures and patterns are The street is paved with maroon halls, including an archway, Linyun carved on the columns, beams and door f lagstones with a total length of 1,273 Pavilion, Eastern and Western Gardens, frames and are gilded with gold. It is said meters, of which 895meters is the Ruiyu Courtyard, Taoli Garden, Da Fu that about five kilograms (11 pounds) pedestrian commercial street. Shops Grand House and Lvfu Hall. gold had been used in gilding the wood standing on both sides are generally of The three carving styles including carvings during the construction of the two or three f loors, which feature the those on stones, bricks and wood are the house. local Anhui style of stone base, brick most renowned. Tourists can appreciate construction and tile roof. these exquisite carvings on door frames, Hui cuisine There are two well-known museums lattice walls, columns and beams in the Hui cuisine with more than a hundred in the street. One is the Tunxi Museum halls. The birds, flowers, grass and figures year’s history is one of the Eight Major with a display of furniture from the on them are vividly presented. Both the Cuisines of China. Hui, unlike other Ming and Qing dynasties on the first Ming and Qing Dynasty carvings display cuisines, features wild game. Cooking floor and an exhibition of calligraphy, poise and refinement. methods feature braising in soy sauce, paintings and china upstairs. The other is Encircled by green hills, two streams stewing and steaming. Originating in Wancuilou, a four-storey structure which flow through the village from north and Shexian County, Huangshan City, Hui is the first private museum of ancient east converging at Huiyuan Bridge. The Cuisine is strict about choosing materials, architectural style. Famous ink stones village has two main streets and about 99 and making sure of freshness and and the four treasures of study, writing lanes. All the streets and lanes are paved tenderness. C

33 ECONOMY 34 W Yang Wei growth of 3.6 percentage points, 3.2 percentage points will come from domestic con domestic from come by exports. contributed be will should points 1.2 and percentage points sumption, percentage 3.2 points, percentage 3.6 forof responsible be growth will investment forces: driving three the of each for goals year’s this on analysis concrete a gave organization, the of president Wei, vice CCPIT,of Zhang all

China’s Export, Still Tough 100 140 120 Chart 1 Monthly comparison of China’s export value between 2008 &2009 2008 between value of China’s export comparison 1Monthly Chart Month 60 80 40 20 Feb. Mar. 10 Jan. Apr. Jan. Table 1 growth onto their shoulders. In March, at a regularly held conference for conference held regularly a at March, In shoulders. this their onto achieving of growth task corresponding the took be economy forces national driving the three hind March, this early report government his for in percent 2009 8 at growth economic annual the set Jiabao Wen Premier hen Total Import and Export Value Export and Total Import Total Import and Export Value Export and Total Import Total Import and Export Value Export and Total Import Total Import and Export Value Export and Total Import Brief on China’s import and export from Jan. to Apr. to Jan. from 2009 export and China’s on import Brief Feb. Total Export Value Total Export Value Total Export Total Export Value Total Export Total Export Value Total Export Total Import Value Total Import Total Import Value Total Import Total Import Value Total Import Total Import Value Total Import Item Unit: Billion USD Billion Unit: Unit: Billion USD Billion Unit: Mar.

Road Ahead Zhang Wei, vice president of CCPIT. of president Wei, vice Zhang Absolute ValueAbsolute Apr. 162.02 124.93 170.73 141.79 90.29 64.86 90.39 78.80 60.07 91.94 71.73 51.41 (Data source: China Customs) China source: (Data Customs) China source: (Data in 2008 in valueExport in 2009 in valueExport Increase ±% -22.8 -22.6 -23.0 -20.9 -25.0 43.1 - -25.7 -25.1 -29.1 -24.1 -17.5 -17.1 - - bring over 1,000 Chinese enterprises there, there, to enterprises Chinese goal 1,000 over bring CCPIT’s it’s and a potential, of have lot markets emerging Those Eastern Europe. and Asia, South America, South Middle-East, the Africa, in exploring markets are more we “Now, crisis. financial the in most the suffered that ones the also are consumption high with big markets mature these North however, Europe, mainly and were America China for markets said. mo ment.” Zhang this at do to effort great a making is CCPIT, including government, is our that what and of growth, task point the percentage 0.8 shouldering pressure, great argued. Zhang forward.” leap to it causing growth, economic in role major a played investment which during period that a was there tells crisis, also financial Asia the after History trillion. 4 over RMB were banks from loans national the policy. monetary easy moderately and policy fiscal proactive the by stimulated year, this sharply increased announced banks from was amounts Loan November. last that stimulus trillion 4 RMB the than more be actually will ment invest Total plan. original its the in of amount percent 44 invested already govern ment Central the year, this of 1 until Up April expectations. initial than better perform to expected are which of all do, nesegovernments areencouraged to in itself, if can be realized. realized. be can if itself, in achievement an already is which increase, stable a ensure and consumption stimulate to actions large of government series a undertaken has central China’s recession, economic world economy. the of context the national Under its of is showcase country a the of ability consumption the year.” said. ofend this Zhang the by 2008 over dollars of billion 30 growth about net see to plans which China means growth, economic annual to tion contribu point percentage 0.8 a for sible respon be will Exports expected. be will points percentage 4 full a unchanged). investment, For remains (which sumption, which would still be a tough mark to meet. to mark atough be would still which figure a point, percentage 0.8 to adjusted be to have would growth GDP national to trade foreign from made contribution the that, press toldthe Zhang of April, end the By later. month one just chart distribution his of changed secretly matter himself a Zhang As fact, optimistic. overly seems be to exports from percentage 1.2 contribution a of points goal conservative earlier the 1), Chart & 1 Table (See year this months four year- first in the for data volume on-year trade shrinking stantly Before, the traditional key export export key traditional the Before, under still are “exports way, this In alone March in that see can “We Investment is what all levels of Chi of levels all what is Investment explanation, Zhang’s to According “3.2 percentage points relies on con on relies points percentage “3.2 However, after watching the con the watching after However, ------to promote the concept of Chinese brands, Table 2 “China Products Promotion Programs” Agenda by CCPIT in 2009 and also develop a mutual relationship and understanding for both sides.” Time Place Event Hangzhou, Zheji- According to its annual plan, this year April The 3rd China-Arab Business Conference CCPIT has an appetite for more frequent ang Province promotion abroad. (See Table 2) The busy April Holland, Spain, Belgium The China-Europe Trade Fair schedule proves that Zhang’s more opti- May Turkey, Syria and Iran The China-Middle East Trade Fair mistic of fulfilling China’s export target in another way. May Dalian, Liaoning Province The China International Trade Fair “However, we can look at the current The China-U.S. Trade and Investment Co- financial crisis as a chance for China to June United States and Canada operation Forum and the China-Canada rest and adjust its industrial frame and Trade and Investment Cooperation Forum structure,” expressed Zhang. “It also The 2nd Conference of Economic and teaches us a lesson that China can’t repeat June Xinjiang Province Business Cooperation between Chi- the way of walking by relying on just one na and Middle Asian Countries leg.” According to Zhang, the industrial Kunming, Yun- The 4th Conference of Economic and Business Co- June revitalization plan from the State Council nan Province operation between China and South Asian Countries also shows the trends and determination The 5th Conference of Economic and of industrial construction adjustment August Brazil Business Cooperation between China from the government side. “In my view, and Portuguese-speaking Countries the chemical industry will grow from the Nanning Guangxi The 6th China-ASEAN Trade and In- revitalization plan, but it will have little October Province vestment Cooperation Summit effect on textiles and electronics… those areas that are already export-oriented sec- October Nanjing, Jiangsu Province The China International Trade Fair tors.” Zhang explained. October Egypt The 3rd China-Africa Business Conference Outbound investment is also a part of international trade. Zhang identified November Columbia The 3rd China-Latin American Business Summit three main factors that will make the for- “We encourage strong enterprises to go to abroad, not only to sell products but also eign investment environment tougher for to invest in other countries, especially those in the mining and natural resources sectors. Chinese enterprises: declining demand Through M&A and foreign investment, China will learn more about advanced manage- and price, shrinking international as- ment technology, and also upgrade its own national industries in return,” Zhang said. “But sets, and a lack of confidence. The global I don’t agree with the practice of ‘bottom feeding’, despite the current crisis. Any time financial crisis has brought great suffer- you go abroad to invest, there is risk of failure: you have to face all kinds of problems of ing to China’s real economy, as well as a an unfamiliar environment, laws, policies, the language, customs, or business style. Do round of cleansing. full research before moving. There is always much to learn and cooperate,” he added. C

IMF: More Funding, More Reforming

Luo Yang

However, when The pain of a decade ago these countries cut What a history! When the Asian Finan- back on government cial Crisis broke out in July 1997, many Asia spending to reduce countries suffered heavily from the financial deficits, allowed in- and economic meltdown. Some Asia coun- solvent banks and financial institutions to fail, and aggressively raised interest rates as IMF tries, such as South Korea, Malaysia and In- said, they found out that the economies hadn’t recovered as IMF suggested. Even the presi- donesia, resorted to IMF for help and carried dent of Indonesia, Suharto, who was in power for 30 years, was forced to step down in the out a series of rescue packages featured by wake of widespread rioting that followed economic crisis in May 1998. What a shame! The tough fiscal and monetary policies under the Asia countries suffered not only the pain of economic crisis, but also the pain of IMF. guidance of IMF whose kernel principles are After the Asian Financial Crisis, IMF was under fire for its principles and policies. neo-liberal economic principles and whose As country after country fell into crisis, many scholars argued that when the country was reasoning was that these tightening steps in a recession, the traditional Keynesian response was to increase government spending, would restore confidence in the fiscal solven- prop up major companies, and lower interest rates. The reason was that by stimulating the cy, penalize insolvent companies, and protect economy and staving off recession, governments could restore confidence while prevent- currency values. They are market-oriented! ing economic and financial loss. So, for most of the countries involved, IMF intervention

35 ECONOMY 36 new ear. Then the current crisis maybe a maybe change! to chance crisis current the Then ear. new the in niche new a needed IMF dismissals. staff 380 to million up include US$100 will of 2011that until cuts spending includes sharp proposal budget The years. few next the deficit over budget million US$400 projected a close to the decided IMF 2008, of 27, board April On 2008. in reserves gold the of part sell to forced was revenue, The IMF is back is IMF The crisis. current the in irrelevance towards sliding be to and seemed history the in did it as countries those help not could IMF that found people 2008, in straits dire into fell countries many crisis and sub-prime the of evolution the with And problems. own their in IMF of pacity ca and role the contempt who economies developed of trust the without stability cial finan global the promoting of sponsibility re the Financial fulfill to Asian resource hadn’t of and Crisis pain the of because economies ofto emerging trust the do without much hadn’t IMF 2007, July the broke in out crisis sub-prime the before the periods during But, difficulties. economic and financial serious experience that countries to assistance financial provide to is IMF the foreign risk. reassure currency against to investors dollar the national to the of currency pegging and capital; and bank investment portfolio attract to rates est inter domestic high of maintenance financial sector; the of liberalization fast was that capitalism, fast of path the down economies criti emerging the encouraging foralso IMF the cized commentators many and crisis, crisis. IMF the crisis cial finan Asian the called scholars many that crisis the during controversial so was IMF ofthe role The road. wrong the on been has Actually, IMF, faced with a shortfall in in shortfall a with faced IMF, Actually, As we know, the primary mission of of mission primary the know, we As financial Asian of pain the aside Put ------income countries and boosting world liquidity. The crisis gave IMF opportunity of re of back! is Yes, IMF the birth. opportunity IMF gave crisis The liquidity. world boosting and countries income forecaster, global policy lender, advisor, economic surveillance, economic provider of helpinclude tolow-ways main The ways. of variety a in reaffirmed been had system cial totally revamping of IMF is not possible now, in my opinion, the gradualism reforming reforming gradualism the opinion, my the in agenda. If top the now, on should ahead. possible way not right is only IMF the of is on revamping so and totally Russia and and USA of China of part larger lesser the the and and missions Europe its fulfill to wants IMF if forward go should we difficult, Though ones. rich for shares smaller mean will economies emerging bigfor votes the of shares larger negotiations: arduous involve will power, in change significant a about May in 11, Conference 2009. Markets Financial the 2009 of Atlanta of role Bank global Reserve central Federal the the in in dollar confidence their the Bernanke, reaffirmed S. Reserve, Ben Federal them. of reject governor to quick been have governments other several and US the But, Zhou’s forideas. support expressed have Russia and Brazil countries, Asian other Several affairs. financial international the and IMF in voice and little have which monetary countries ing international the emerg and of developing many of thoughts the stability reflected Zhou of views the The system. financial maintain and crisis the address to community’s ability international the enhance to role important more much a play will forever. IMF removed And be will currencies national credit-based using by is caused deficiencies that ent currency reserve international new a disconnected create from individualand nationsIMF and isreform controlled to the by IMF. forward approach put And inZhou this way,holistic ahead? ways thethe inher What future! the in stability financial the keep and inter existing crisis of out get the to we want if the must a is of IMF in So, reforming system. risks monetary national systemic and vulnerabilities the to inherent spillover the its and reflected worldcrisis entire current the of outbreak the that thought Zhou Mr. paper, his Monetary International the Reform named System. Thesepaper are the the first big proposalspublished forChina, internationalof monetary Bank reformPeople’sfrom China. In of crisis. atime in cially espe realities, global changing reflect to IMF of reforming of task urgent an is it So, IMF. to resource more The IMF fromeconomies. developing developing the economies,and theIMF bigger by voicefaced ofproblem developingdifficult economiesand serious shouldaffairs. the That’s haveIMF. in of international governance in the voice more reflected haven’t have developments should these However, and world the in part increasing countries an emerging playand developing the that is years fifty impor past most the in The thing ago. years distinct and fifty tant powers political and and economic ago of years structure fifty the created was reflected IMF of quota and its of governance votes the the But in countries. reflected is member IMF the in power of balance the know, we As story! whole More reforming: mission impossible? mission reforming: More Yes, let anyone to loose his hand is difficult. A more ambitious quota reform, to bring bring to reform, quota ambitious more A difficult. is hand his loose to anyone Yes, let of governor Xiaochuan, Zhou April, in London in gathered G20 of leaders the Before Now, after the leaders agreed to give more resources to IMF, and what else? It isn’t the Author: from Haikou central branch, People’s ofChina) Bank branch, central Haikou from Author: to combat the global economic crisis and reinforce the finan the reinforce and crisis economic global the combat to facing helping in roleIMF’s risks the era, of new the economy.In global and the others on policies their of impact banks, the of their and economies big of surveillance independent and even-handed, candid, ensure to IMF expect also leaders G20 The Summit. London G20 the in IMF of success great a was it said Strauss-Kahn Dominique and economies, emerging developing in crisis liquidity ease its to of quasi-currency billion-worth own US$250 issue to IMF allow US$750and to billion billion US$500 by resources fund’s the increase would they that consensus a ofreached G20 leaders So, the when quota. IMF’s than resources more need Poland, and key especially countries, some the Europe Eastern countries, such as Iceland, know, Romania, Turwe As that! do to of agreed communiqué bosses these the and resources more after much needs Yes,IMF, IMF G20.delight of his director contain barely managing could the Strauss-Kahn, Dominique past. the in than world economy the role in play abroader and resources more have both should IMF the that decided April this Summit London in leaders G20 the when So, future. the in and about crisis intalk rolewould details it financial the in important more a play would IMF that decided they vember, When the leaders of G20 met in Washington last No last Washington in met G20 of leaders the When (The views expressed here are those of the author. ofthe those are here expressed views (The ------

NVESTMENT IINFO nvestment I Projects in Western CHINA Energy Sources and Chemical Industry Sector

I. Project Name and build Shanbei energy source chemical income is RMB 1.21 billion, investment Wulidun Coal Chemical Industry Project industry; on the other hand it has active profit rate is 16.85% and the investment of Fugu County meaning to overcome poverty and speed recovery period is 7 years. II. Project Implementation Agency up Fugu County economic development. Contact Person: Wang Shiping Shaaxi Coal Industry Group and Jinliyua Contact Person: Zhang Yinbin Telephone: 0912-8331271 8684001 Group Telephone: 0912-8713729 Fax: 0912-8332487 III. Project Description Fax: 0912-8712810 Postal Code: 719300 Fugu County has rich coal resources and E-mail: [email protected] the storage area is 1359 km2 and the veri- Address: Room 409, Government I. Project Name fied reserve is 20 billion tons. In recent Building, Fugu County Committee 60,000 t/y Polyformaldehyde Project in years, Fugu County focuses on the deep Shenfu Economic Development Zone processing of raw coal in coal resource. I. Project Name II. Project Implementation Agency The project is planned to build 1.5 million 60000 t/y1, 4 Butanediol Project in Shen- Shenfu Economic Development Zone t/y carbinol, 600,000 t/y MTP in Wuli- mu County III. Project Description dun, Fugu County. Industry methanol is II. Project Implementation Agency Polyformaldehyde, featuring low propor- a basic organic chemical industry raw Shaanxi Delin Chemical Industry Co., tion, high strength, anti-erosion and ex- material and it is used widely. Except for Ltd. cellent lubricate and power performance, using as a good solvent, it mainly is used III. Project Description is an important thermal plasticity. It can in synthetic fibre, formaldehyde, plastics, 1,4 butanediol is an important basic be widely used in such industry of auto- medicine, dyestuff, synthetic protein etc. chemical organic raw material for chemi- mobile, machinery, chemical industry, Propylene is the second raw material for cal industry and it can derive a series of electrical appliance, instrument, daily use petrochemical industry and it has long fine chemical industry products with high chemical industrial products. The project product chain. The application field is extra-value. The main products are tetra- mainly uses methanol as raw material to wide and it has rich byproducts. hydrofuran, γ- butyrolactone, engineering produce polyformaldehyde. The project IV. Total Investment and Coopera- plastics, polyurethane. In addition, it can is planned to produce 60,000 tons poly- tion Form be used as additive in pharmaceutical in- formaldehyde resin a year. The construc- Total investment of the project is RMB 2 dustry and chemical industry concerned tion period is 2 years. billion. Cooperation form is joint venture with products for daily use. The project is IV. Total Investment and Coopera- or cooperation. The investment ratio shall planned to build a 1, 4 Butanediol produc- tion Form be negotiated by both parties. tion line. The methanol, calcium carbide Total investment of the project is RMB V. Anticipation of Market and Anal- and other raw material can obtain in local 1 billion. Cooperation form: sole invest- ysis of Investment Return area, therefore, the cost is low and its de- ment, joint venture or cooperation. Olefin category products have broad mar- velopment prospect is great. V. Anticipation of Market and Anal- ket demand and great economic benefit IV. Total Investment and Coopera- ysis of Investment Return potential. In 2010, the methanol con- tion Form Polyformaldehyde resin consumption of sumption is estimated to be 39 million Total investment of the project is RMB China mainly distributes in electronics, tons in 2010, ethylene demand is about 1.77 billion. Cooperation form: joint ven- electric appliance, and daily use product 9.2 million tons, and propylene demand is ture or cooperation. fields. In future 10 years, polyformalde- 10.54 million tons. The resource alloca- V. Anticipation of Market and Anal- hyde resin demand of our country still tion is good and gasoline, liquefied gas, ysis of Investment Return increasing at a high speed. It is estimated fuel gas and other by products can be the 1, 4 butanediol in world and home mar- to be 450,000 tons in 2015 years. supplement of related products of Fugu ket is very bright. It is estimated that 1, After completion of the project, annual County. Developing this core technology 4 butanediol demand in 2010 is 440,000 sales income is RMB 520 million, profit is an important measure for Shaanxi to tons and the market gap is great.. After and tax RMB 206.5 million, total profit develop new-type coal chemical industry the project is completed, the average sales RMB 158.7 million, investment profit

38 rate is 32.49% and profit and tax rate of 2 years. profit rate of investment is 28.37%. The investment is 24.97%. IV. Total Investment and Coopera- internal rate of return of the whole invest- Contact Person: Li Xiaowei tion Form ment (after tax) is 20.7%. Telephone: 0912-8493881 Total investment of the project is RMB Contact Person: Gao Shengyan Fax: 0912-8493881 185.61 million. Cooperation form: sole Telephone: 0912-3899509 Address: Shenmu County Jinjie Indus- investment, joint venture or cooperation Fax: 0912-3899509 try Park, Shaanxi Province V. Anticipation of Market and Anal- E-mail: [email protected] Postal Code: 719319 ysis of Investment Return Address: Administration Committee E-mail: [email protected] In China, paraformaldehyde is mainly of Yulin Economic Development Zone, used in production of glyphosate, bu- Shaanxi Province I. Project Name tachlor and other herbicide. It also can be Postal Code: 719000 20,000 t/y Polyformaldehyde Project in used in dope, medicine, synthetic resin Yulin Economic Development Zone and paper making. Paraformaldehyde de- I. Project Name II. Project Implementing Agency mand in pesticide, medicine and automo- 50,000 t/y Granular Calcium Cyanamide Yulin Economic Development Zone Con- bile dope field is estimated to be 150,000 and 5000 t/y Dicyandiamide Project in struction Co., Ltd. tons in 2010. After the project is complet- Shenmu County III. Project Description ed and put into production, the profit rate II. Project Implementation Agency Polyformaldehyde is engineering plastics of investment is 13.1%, internal rate of Shenmu County Economic Development with high crystalline and its strength, return is 13.1% (after tax), the investment Bureau hardness are similar to metal. It can be recovery period is 7.8 years (including III. Project Description widely used in such industry of electron- construction period). Calcium cyanamide is a kind of new envi- ics, electric appliance, machinery, au- Contact Person: Li Xiaowei ronmental protection medicine which has tomobile, building material, agriculture Telephone: 0912-8493881 such functions of insect disinfestations, and etc. It has broad market prospect. The Fax: 0912-8493881 sterilization, herbicide, soil improvement, project is planned to adopt polyformalde- Address: Shenmu County Jinjie Indus- etc. Granular calcium cyanamide is a kind hyde technology and build a production try Park, Shaanxi Province of multi-functional high-grade agricultural line with annual capacity of 20,000 tons. Postal Code: 719319 fertilizer. Dicyandiamide is separated into The feasibility study report of the project E-mail: [email protected] common dicyandiamide and electric dicy- is completed. At present, the environmen- Postal Code: 719319 andiamide and it can be used I medicine, tal appraisal, safety appraisal and report pesticide, resin and new-typed electric for approval are under way. I. Project Name chemicals. The project is planned to build IV. Total Investment and Coopera- 12,000 t/y Methyl Carbonate Project in granular calcium cyanamide and dicyan- tion Form Yulin Economic Development Zone diamide production line. It can produce Total investment of the project is RMB II. Project Implementation Agency 50,000 tons of granular calcium cyana- 608 million. Cooperation form: joint ven- Yulin Economic Development Zone Con- mide and 5000 tons of dicyandiamide a ture, cooperation or financing. struction Co., Ltd. year with over one million tons of calcium V. Anticipation of Market and Anal- III. Project Description carbide produced by 32 calcium carbide ysis of Investment Return Methyl Carbonate is widely used in medi- manufacturers as raw materials. After the project is completed and put into cine, herbicide, composite material, dye, IV. Total Investment and Coopera- production, the estimated annual sales lubricate additive, foodstuff enhancer, tion Form income is RMB 290 million, annual cost electronic chemicals and other fields Total investment of the project is RMB is RMB 160 million, annual profit and tax and it is called new foundation stone of 79.461 million including fixed asset in- is RMB 14.19 million. The investment modern organic compound. As a gasoline vestment of RMB 69.4981 million and recovery period (after tax) is 6.75 years. additive, methyl carbonate can improve fluid capital of RMB 9.963 million. Coop- Contact Person: Gao Shengyan octane number and oxygen content and eration form: sole investment. Telephone: 0912-3899509 enhance its antiknock property. Methyl V. Anticipation of Market and Anal- Fax: 0912-3899509 Carbonate also can be used as additive of ysis of Investment Return Address: Administration Committee cleanser, surface active agent and soften- With the increase of calcium cyanamide of Yulin Economic Development Zone, ing agent. The project is planned build and dicyandiamide consumption in en- Shaanxi Province methyl carbonate production line with vironmental products, the market space Postal Code: 719000 annual output of 120,000 tons in Yulin becomes larger and larger. The total Economic Development Zone. Now the global output of calcium cyanamide is not I. Project Name prophase project is carrying out more than 500,000 ton, while the total 20,000 t/y Paraformaldehyde Project in IV. Total Investment and Coopera- market demand is over 600,000 tons. The Shenfu Economic Development Zone tion Form global dicyandiamide demand per year is II. Project Implementing Agency Total investment of the project is RMB about 80,000 tons-100,000 tons and it is Shenfu Economic Development Zone 96.3 million. Cooperation form: joint ven- estimated to be 120,000-140,000 tons in III. Project Description ture, cooperation or financing 2010. But the world dicyandiamide pro- Paraformaldehyde is white burnable V. Anticipation of Market and Anal- duction capacity is not more than 80,000 crystal powder and it is mainly used in ysis of Investment Return tons. After the project is completed, it production of formaldehyde resin, dope In 2010, the apparent consumption of can realize annual average sales income of automobile industry, raw material of methyl carbonate of our country is esti- of RMB 268.308 million, profit and tax pharmaceutical industry and sanitize in mated to exceed 82,000 tons, net export of RMB 52.85 million. The profit rate of ward, clothes, beddings etc. it also can be volume will reach 28000 tons. The mar- investment is 21.9% and the investment used as raw material of fumigant, insecti- ket prospect is good. After the project is recovery period is 3.5 years. cide, antiseptic and herbicide. The project completed and put into production, the es- Contact Person: Wang Shiping is planned to build paraformaldehyde timated sales income is RMB 105 million Telephone: 0912-8331271 8684001 production line with annual capacity of and annual profit and tax is RMB 52.28 Fax: 0912-8332487 20,000 tons and the construction period is million, annual profit RMB 27.08 million, Postal Code: 719300

39 Research 40 volved an increased economic engage economic increased an in volved recently has policy economic nese over Chi are Also, economy. bad a in that leveraged companies resources al glob of state financial the by presented opportunities the by also but resources required to access secure to desire a by part new in motivated is activity several This deals. of announcement the by recent evidenced as China in high a priority remain to appears overseas ity commercialactiv resource-driven ism. politically andmotivated protection concerns economically of era an to return a prompted over and investment transaction any in risk economic the increased have economy global the of health the regarding Concerns buyers. other for fi case the been raising has as nancing difficulty than rather ties opportuni investment today’s of value future the on have will that and impact the economy global the of health the over concerns to primarily due is tivity been focused on Asia. on focused been have deals outbound year’s this of 67% same, the total roughly stayed has value deal Although 2008-9. YTD deal volume in decrease 68% a with activities, M&A outbound China been in has down slow there a began, current crisis the financial since that sug however, reports gest, recent Some increase. to continue will activity outbound this that believe commentators Most years. sev eral last the over activities M&A seas over growing its fuelled have reserves foreign-exchange and surplus na’strade The background The Chinese enterprises for M&A outbound of future The I. Mark Uhrynuk Mark Chinese — HowTheGlobalFinancial Despite these concerns, outbound outbound concerns, these Despite It is likely that this decrease in ac in decrease this that likely is It As we read in the press lately, Chi lately, press the in read we As Then And Now OutboundInvestment ------Sized Enterprises (SMEs), there also also there (SMEs), Enterprises Medium Sized and Small by than less million of US$10 investments (particularly deals smaller for process the speed streamline and may investments overseas for China’s process to approval revisions (SOEs). Enterprises Owned barriers, State for especially political and regulatory regard ing uncertainty and risk economic to due largely is This million. US$500 in below acquisitions stakes or businesses, large minority small be to likely are acquisitions near overseas the Chinese In term, States. United the as jurisdictions, such certain in opposition challenges with or met be could stake a owns state Chinese the where quisition met ac be any however, to opposition; fierce with likely less are stakes nority So what does this mean? this what does So opposition. political economicpotentialprotectionismrisks, and funding and valuation regarding concerns enhanced global malaise, current economic the onto and, layered wariness when investors’ increased is There markets. today’s in deals bad like look now which deals win to premiums paid investors Chinese past, recent the continue. to likely is trend this and commodities, and resources in countries, rich those particularly developed less with ment tive and steel industries. steel and tive automo the in particularly in products, and companies domestic favouring outs bail with crisis financial current the States in United the in seen been has already This protectionism. to in lead increase will an pres countries certain domestic in that sures chance real a is Although the recently announced announced recently the Although But, there remain challenges. In In challenges. remain there But, Smaller acquisitions or small mi small or acquisitions Smaller there worsens crisis financial the If Crisis Will Affect ------larger Chinese companies are likely to to acquisitions. overseas likely larger attempt are companies Chinese larger and the of more stage, world the on confident established more becomes busi nesses Chinese and further grows China corporations. national multi to established large with expected (or compete) competing global and the game into late are that but world the in market largest the be will what of share large a have that Chi companies by nese activity in increase an Expect sectors. commodities and resources in particularly interests, SOEs Chinese defend to by investments strategic be will as the UK. the as such countries certain in sectors nology tech and goods branded the in af fordable more appear business certain make will RMB astrong Again, technologies. and brands new acquire to opportunities for and markets new for look will home at dominance with companies sector, Chinese resource the of Outside Canadian dollar. open devalued a more and rich, government resource play: term short better a be may Canada terprises, en Chinese by investments pending to regulators Australian the of reaction the on Depending Australia. and such Canada as countries rich resource certain in will cheaper even RMB appear investments strong make A America. South Asia, Central Africa, as such regions in or control over their naturalownership resourceshave that - nations developing those towards activity drive help) to ue contin to likely is (and helped has tries na’s coun developed less towards policy Chi and commodities and resources ral What and where? and What Chineseinvestment outbound for countries and Target sectors II. In the medium to longer term, as as term, longer to medium the In The desire to secure access to natu to access secure to desire The ------China’s first stop for outbound Some practical considerations Dealing with risk investment is likely to be other Asian regarding CFIUS countries, but Europe remains an op- This will be a heightened concern portunity. Although, in the past, there While a detailed review of the for both buyers and sellers. Investors has been concern expressed about Eu- CFIUS process is beyond the scope of will need to consider both execution ropean protectionism (which may have this discussion, Chinese investors who risk (that transaction may never close put certain Chinese companies off from are interested in making acquisitions despite a significant investment of investing in Europe - but may have in the U.S. may consider the following management time and other resources) saved them money), Europe appears to practical tips: and investment risk (the deal does not be more welcoming now. targets that are in the sensitive indus- generate the expected returns or deliver The United States also remains the key tries, such as defence, national security, the intended strategic goals). Concerns market for many Chinese enterprises with energy and natural resources, aerospace, over these risks will force both buyers “global” ambitions. There still remain, transportation and advanced technology, and sellers to be better prepared and to however, regulatory and political barriers are more likely to present U.S. national pursue fewer initiatives more carefully. to making acquisitions in the US, particu- security considerations; targets that have Deals are likely to take more time to larly by SOEs. While recent changes to contracts with governmental agencies or complete. the U.S. foreign investment regime have conduct activities subject to U.S. export Understanding the politics sought to increase transparency and pro- controls are also more likely to present vide guidance to non-U.S. investors, there U.S. national security considerations; Depending on the nature of the tar- is a strong foreign investment review pro- demonstrate, if the Chinese acquirer is get business and the jurisdiction, politi- cess in place and uncertainty surrounding controlled by, or otherwise connected cal landscaping may be key and early the economic crisis and a new administra- with, the Chinese government, that it planning will be necessary. As indicated tion. On top of that, many in China still is independent from the government earlier, with respect to U.S. acquisitions, have not forgotten the Unocal experience in terms of management and invest- Chinese buyers should seek advice early of 2005. In any event, the State may have ment decisions; consult with CFIUS as concerning potential CFIUS and other to dilute or divest its stakes in SOEs if sig- early as possible regarding the proposed regulatory issues to help identify and nificant acquisitions in the United States transaction and be prepared to adjust address potential opposition and allies. by SOEs are to succeed. the structure of the transaction based on Understanding the political and regula- such consultations; engage U.S. legal ad- tory landscape will help manage deal A brief look at the U.S. foreign visors to develop a comprehensive legal execution risk. investment rules and political strategy to address potential Due diligence One of the reasons for the lack of CFIUS concerns, to anticipate and ad- U.S.-focused M&A activities by Chi- dress potential opposition at federal or This is a key tool in helping address nese companies recently is the risk as- state levels, and to identify and nurture investment risk. Lack of forward visibility sociated with the regulatory approval by potential allies; and particularly if the in markets will put pressure on the struc- the Committee on Foreign Investment in transaction is likely to be controversial, turing and investigatory stages of transac- the United States (“CFIUS”), an inter- engage public relations advisors and tions. Sellers should expect due diligence agency committee authorized to review make full disclosures as early as possible investigations to become more onerous. foreign acquisitions that could result in to the relevant audience in the U.S. of the Buyers should identify early on what areas control of a U.S. business by a foreign purpose of the acquisition, the acquirer’s are most critical for investigation. With person on the grounds of “national se- investment objectives, institutional and proper organisation and planning, a buyer curity”. Such regulatory hurdles were financing arrangements, relevant finan- can be thorough and efficient, but buyers cited as the primary reasons for the cial information, intentions and plans af- and sellers should expect due diligence to withdrawal by the China National Off- ter the completion of the acquisition, etc. take longer to conclude. shore Oil Corporation of its takeover Management and integration bid for Unocal Corporation in 2005 and III. Getting a deal done: the failed attempt by Huawei Technolo- observations in the current Management expertise and risk ap- gies and its U.S. partner, Bain Capital, environment preciation are critical to the successful to acquire 3Com Corporation in 2008. completion of any M&A transaction, and Valuation issues The CFIUS review process has been these attributes will be even more impor- criticized for its lack of predictability Seller valuation expectations have tant in cross-border deals in the current (e.g., the term “national security” is not not yet adjusted (and will take time to economic climate. In addition, cross-bor- defined in the statutes and regulations) adjust) to the current economic climate. der deals often fail due to integration is- and the potential for abuse rooted in At the same time, acquirers will be very sues; particular challenges and concerns economic protectionism by U.S. compa- disciplined in their approach and down- include cultural differences, defection of nies and their congressional allies. side analysis will be robust, with a focus key talent, language barriers and market In conducting its analysis of wheth- on traditional and outlying risks. A key knowledge. To help address these issues, er a transaction poses national security challenge will be finding creative ways to integration planning should begin early risk, CFIUS conducts a two-pronged bridge this valuation gap. This may lead and involve those with responsibility for test: (i) whether the nature of the U.S. to structures in which risk and reward managing the business, considering the business being acquired creates suscep- can be shared over time - joint ventures, impact on existing operations and future tibility to impairment of U.S. national minority interest or staged investments, growth plans. security (i.e., whether there is a “vulner- carefully crafted earn outs and structures ability”); and (ii) whether the foreign employing non-cash consideration. (Author: Partner in the Hong acquirer has the capability or intention The future is uncertain and parties Kong office of Mayer Brown LLP, has to exploit or cause harm (i.e., whether to a deal will have to understand (and over 20 years of experience in advis- there is a “threat”). “National security build into models and plans) the pos- ing clients on international invest- risk” is a function of the interaction be- sible impact of stimulus measures on the ment transactions from New York, tween threat and vulnerability. business to be acquired. London and Hong Kong.)

41 Research 42 the c the the world’s commodity currencies in re in currencies commodity world’s the against appreciations CNY massive meant has USD the against Moreover, stability CNY’s the market. international the on power buying more much company based China- any gives and appreciation erable consid a is This change. regime currency mid-2005 the since 17.5% and y/y appreciated 8.6% had (REER) rate effective exchange real CNY’s the 2009, January their outward foreign direct investment investment direct foreign outward their up ramp significantly opportunity to firms China’s for perfect the create will this deleverage, to firms commodity overseas many of need pressing the and prices ity commod cheaper strong a with Combined dollar. against pegged CNY the keep T S tephen g tephen Important disclosures can be found in in found be can disclosures Important According to our estimates, as of of as estimates, our to According CNY 1. Strong We forecast USD 150-180bn of resource-focused FDI Chinese ۞ Cheap leverage commodities high and at overseas commodity ۞ Beijing’s strong renminbi policy will likely give China’s com ۞ hart 1&2. hart exports, we believe Beijing will will Beijing believe we exports, about concerns Despite renminbi policy. strong Beijing’s of year the be will believe, we his, Strong Renminbi Policy&the modity firms enormous powers enormous buying in 2009. firms modity overseas 2009, in vs. USD 80-100bn of FDI China. into China’sto support providefurther FDI. outward firms Coming of Age of China’s Outward FDI Outward China’s of Age of Coming reen, Jinny y Jinny reen, Chart 1:Chart appreciates massively CNY an, David Barclay David an, - - - ity prices themselves have crashed. The The crashed. have themselves prices ity desire to keep them cheaper cheaper them keep to desire currencies. modity com major the against movement much expect not do we but H2, in weakness lar company.China-based We expectany of a return some dol for cheaper massively gotten as have Australia and commodity Canada in sets words, other In their from peaks. respectively, 37%, and 34% depreciated have which AUD-CNY, and CAD-CNY shows 1 Chart months. cent FX reserves have not been formally used used formally been not have reserves FX official the seems, it far, So below). more which (on 2008 in outflow FDI na’sentire Chi to equal roughly of deals, worth 65bn USD count we alone, February In things. such to owner contracts supply long-term or ship secured have investors Chinese which in deals of flurry a seen has of2009 beginning The land. agricultural and rials, energy, mate raw sectors: on three cussed fo are flows FDI outward China’s (FDI). The second plank is that commod that is plank second The the and – commodities 2.Cheaper

- Chart 2:Chart Cheaper ore iron ------the three main reasons for this. out reasons main three the flesh us Let scale. some gains really it when year the be will 2009 We that believe years. of number a has for place in overseas been invest to firms China’s of more encourage to policy Out’ ‘Going The interest loans and direct capital injections.low state-owned entail may (SOEs),which support enterprises to fund special a establishing Na Administration the Energy tional of talk been has there Recently, officials. foreign-affairs government by as by well as companies, resource orchestrated own China’s being are deals bigger The transactions. strategic large of backer clear a also is Bank Development China the Moreover, deals. strategic of backer a be to up shaping is sector, financial the on focussed has now sovereign until which fund the wealth (CIC), Invest Corporation China ment However, deals. these in time, retail prices of processed products products processed of prices retail time, same the (At drop. 72% a 2009, January in barrel per 280 CNY has around it to tumbled 2008, July in barrel per 995 of CNY peak its From CNY oil. the crude WTI to of price happened has what 3 Chart shows levels. 2008 from so or 20% by down prices contract see could April) by completed be should (which negotiations ore iron 2009 The 2. Chart in show we as peaks, its off 60% some tonne, CNY a for 400-500 bought be now can India from ore iron Spot index. CRB the to according peak, 2008 its from 56%down is complex - - Chart 3: Oil cheaper in CNY Chart 4: China FDI to boom

onshore fell by only some 20%, making purchases may extend to minor metals released publicly. The biggest such deal gasoline some 60% more expensive in like uranium, which is needed to fuel Chi- in recent weeks was the USD 25bn deal China than in the US and giving the Chi- na’s next wave of nuclear power plants. with Russia, which entails loans to Ros- nese refiners nice thick margins, which 3.Liquidity, liquidity, liquidity neft and Transneft in return for interest will help them recoup some of their 2008 The third plank supporting China’s and the right to buy 300,000bpd of oil losses.) strong FDI outflows this year is simple: for 20 years. There are reports that this Beyond the short-term desire to capi- liquidity. China’s corporates and banks are oil will be sold at market prices, which talise on low prices, China’s commodi- (generally) liquid and not highly leveraged. hardly seems beneficial to China from a ties investment should also play a role in In contrast, potential targets are often purely economic perspective. As we noted smoothing the cycle. At present, many pretty highly leveraged. China’s firms are above, though, Beijing appears to be mo- long-term natural resources projects are almost uniquely well-placed to take advan- tivated by strategic concerns as well. For being shelved due to low prices and prob- tage of the distress faced by overseas firms our purposes, we assume that the entire lems with credit availability. This will that need to refinance. (See chart 3 & 4) loan leaves China via the capital account. inevitably cause a sharp increase in prices On the other side of the equation, ex- Sinopec has also signed a deal with Saudi whenever demand returns. If China’s capi- ports are still falling off a cliff (see OTG, Arabia’s Aramco under which Sinopec tal can be invested in supply-side capacity 11 February 2009, ‘At the bottom of the has committed to purchasing future Saudi now, this should help prevent some of the first cliff’). This is leading to concern in supply in return for shares in China’s new volatility in prices. (We outlined this risk the market that Beijing might engineer a refineries. This might help deal with over- in our recent Commodity Focus, 4 March competitive devaluation. We do not think capacity in Saudi production and Chinese 2009, ‘Riding out the storm’.) These deals this will happen, for four reasons: refining. China has also signed similar also give a security-conscious Beijing 1. In a world of contracting global de- deals with Venezuela and Brazil. a stronger toehold on future supply, an mand, a cheaper currency would win few 2.Large state-owned corporations important objective should tighter fun- orders. taking stakes in overseas commodities damentals return to global markets and 2. It would more than likely trigger a firms. bring China into competition with other sell-off of other Asian currencies, leaving The USD 19.5bn Chinalco offer for a large resource-consuming nations. China back where it started. stake in Rio Tinto’s operations is probably It is also worth distinguishing be- 3. It would be a political bombshell in the most significant example yet of this tween China’s strategic outward FDI and a world looking for stability from China. type. If approved by the Australian authori- its tactical, short-term, state-led purchases It would risk triggering retaliations from ties, the deal would give Chinalco signifi- of commodities. The latter is often more Washington and Brussels at a time when cant stakes in some operations, not just an targeted at buoying production to protect protectionist sentiment is running high. equity stake in the firm. It would also likely employment in certain sectors or to pro- Given that the exchange rate is still impact the structure of the global iron ore tect farmers’ incomes, and the commodity (probably) undervalued, it would only market. Longer-term, some analysts believe involved is not always of strategic impor- trigger more speculative capital inflows that due to the unprecedented structure tance. Aluminium is a good example, as into China when the financial sector stabi- and depth of the proposed deal, Chinalco China has ample production capabilities lises later in the year. could end up acquiring Rio. There have and significant inventories. Where China been news reports that China Development is making outright strategic purchases Three types of deals Bank is providing the financing. If agreed, (of commodities themselves, as opposed We briefly describe the three types the dollars could leave China in return for to FDI), the intent is the same but the ra- of deals announced in February 2009, of ownership in 2009. tionale usually differs. For example, the which we expect to see much more. 3.Below-the-radar deals. State Reserve Bureau is reportedly buying 1.State-to-state loans-for-oil deals, These are small in scale but many in copper, but the focus here is on building in which Beijing and an oil-exporting number, and their targets are varied. Table stockpiles for future use as opposed to nation sign a long-term supply contract. 1 at the bottom of this note shows a num- supporting local smelters. Other strategic These contract deals are usually not ber of them.

43 Research 44 FDI inflows in 2009 2009 in inflows FDI to exceed outflows FDI We expect H2. (The Minister of Commerce recently recently Commerce of Minister (The H2. in economy global the of state seized-up the given 60bn USD of region the in was total annual the guess we 33bn,and USD H1- In to amounted FDI outward China’s 2008, underestimated.) numbers these probably so are statistics, the in appear ing without China of out way their said, find probably deals under-the-radar (That many materialised. not has boom recenting in years, but the much-forecast increas gradually been China’s has FDI outward shows, 4 Chart As flows? FDI 5-Feb 5-Feb 16-Feb 16-Feb 12-Feb 17-Feb 17-Feb 20-Feb 17-Feb 20-Feb 20-Feb 23-Feb 23-Feb 27-Feb Where does this leave us in terms of terms in us leave this does Where zinc producer producer zinc China’s third-largest Longman Nonempty, Shenzhen Chongjin China Minmetals China Minmetals ofChina) Corp. (Aluminium Chinalco Chinese government Chinese government Chinese government lin Iron & Steel &Steel Iron lin VaHunan China Weichai Weichai China CNPC China-based investor China-based - Table 1: China’s outward (actual FDI andFebruary proposed) in 2009

Fortescue Met Fortescue teurs Baudouin Baudouin teurs Perilya Mining Perilya als Group Ltd. Group als France’s Mo OZ Minerals OZ Minerals government government government government government Venezuelan Energy Inc. Inc. Energy tion target target tion Canada’s Rio Tinto Tinto Rio Acquisi Brazilian Brazilian Verenex Russian Russian - - outward FDI exceeds inward FDI. This This capital the on impact big a FDI. have likely will inward exceeds FDI outward in which year first the be will 2009 that ing forecast and out necks our sticking weare words, other In 80-100bn. USD around to 30-40%, by decline likely will FDI think we 2009, In 125bn. USDwas of whole region a the as in 2008 for figure FDI the think we and investment, foreign of 74bn possible. is USDin 2009. outflows in think 140bn We increase significant a see will we that ly we like seems it deals year, this seen of already have flurry the on Based deals.) the such under-count but to seems often 52bn, ministry USD was figure the said - In H1-2008, China attracted USD USD attracted China H1-2008, In - - (USD bn) (USD 0.00236 0.00236 0.02889 0.02889 Value Value 0.357 0.357 0.323 0.323 19.5 1.7 1.7 25 25 10 10 8 Consumer and Competition Commission (AC&C). Commission Competition and Consumer Australian tothe tomake submissions 05-Mar-09 until have Rio in 19.5bninvestment USD by the affected Tinto’s Groups Rio in mines. stakes on 12.3bn USD spend and bonds 7.2bn USD tobuy 09 ofconvertible 12-Feb- on (Chinalco) ofChina agreed Corp Aluminum Journal. Securities China in published statement a50.1%buy a in said company the Perilya, in stake to offer 28.9 USD its for Review Board Investment Australia’s Foreign from approval received Chongjin nounced on 01-Apr-09, according to the AC&C website. website. AC&C tothe according 01-Apr-09, on nounced an be will proposal the on Findings per, gold. and zinc, ofcop supplies tosecure OZ tobuy Minerals agreed trader, metals nation’s the biggest Minmetals, China under a loan-for-oil agreement. agreement. aloan-for-oil under 25bn USD Russia tolend agreed China 6bn. China has contributed USD 8bn. 8bn. USD contributed has China 6bn. 12bn USD toUSD from fund development joint their todouble Venezuela agreed and China Petrobras agreed to supply 60-100k bpd this year. this bpd 60-100k tosupply agreed Petrobras element, partnership ofthe top On Sinopec. with conjunction in oil exploration deepwater finance tohelp 10bn USD Petrobras tolend agreed China 323mn in Fortescue in a share placement. ashare in Fortescue in 323mn Valin toinvest USD that plans reported Media by CIC. backed Valin reportedly is Fortescue. with talks in is it that confirmed 20--09Valin On diesel engines, gearboxes, propellers shafts, etc. etc. shafts, propellers gearboxes, engines, diesel ofmarine amaker Baudouin, ofMoteurs assets for 2.36mn topay USD agreed had it said Weichai oil assets, in a deal worth around USD 357 mn. mn. 357 USD around worth adeal in assets, oil Libyan its Canada’s Verenex including Inc., Energy tobuy agreed has Corp. Petroleum National China Sources: Media reports, SCB Global Research Global SCB reports, Media Sources: - - ties Analyst ) Analyst ties Commodi Barclay, David Economist; Yan, Jinny China; Research, of Head Limited (China) Bank Chartered dard scale. (Seescale. Table 1) nowhas FDI China’s outward that. exceed soon very could China trends, current on Based UNCTAD. to according 231bnoffshore, USD combined a invested China, excluding economies, 2007,developing In FDI. of terms in countries developing of file and rank ofthe out China’semergence mark also will It dragon?’). the is hungry ‘How 2009, March 10 OTG, (see balance into it basically for 2009, bringing account (Analysts: Stephen Green, Stan Green, Stephen (Analysts: Details Details C - - - -

airs & Expos China Fairs & Expos F

Energy and Resources, Mining 2009 The 15th Shanghai International Exhibits: image show of big energy enterprises, Industry, Metallurgy, Welding, Metallurgical Industry Expo energy projects promotion, investment and financing Electric Power Date: June 11-June 13, 2009 projects promotion, coal industry technology and 2009 The 3rd Western China (Chengdu) Frequency: Yearly product exhibition, etc. Petroleum, Gas and Petrochemical Venue: Shanghai International Exhibition Center Web: www.xbny.cn/newview Technology and Exhibition Expo Exhibits: metallurgical products, metallurgy equip- Add: No.9, Lixin Lane, Wenhua West Street, Xingq- Date: June 4-June 6, 2009 ment, environmental protection and new energy- ing District, Yinchuan, Ningxia, China, 7150054 Frequency: Yearly saving technology, etc. Tel: 86-951-5055836 Venue: Chengdu Century Town New International Web: www.metal1986.com Fax: 86-951-5055838 Convention and Exhibition Center Add: Rm 605, A Building, Yangguang Business Email: [email protected] Exhibits: petroleum. Petrochemical technology and Building, 1718 Daduhe Road, Shanghai, China, equipment, gas pipeline construction, storage and 200333 The 14th International Construction Energy- transportation technology, etc. Tel: 86-21-52830922 Saving, Heat-preserving and Waterproof Add: Block A, 7F, Qunyi Building, No.181, Fuqin Fax: 86-21-52830917 Products Fair West Road, Chengdu, Sichuan, China Email: [email protected] Date: June 18-June 20, 2009 Tel: 86-28-68168941 Frequency: Yearly Fax: 86-28-68168911 The 5th China (Beijing) International Venue: China International Exhibition Center Email: [email protected] Exhibition of Solar-Energy Products and Exhibits: construction energy-saving, heat- Photovoltaic Engineer preserving and waterproof products, heating and air Date: June 18-June 20, 2009 conditioning products and technology, etc. Frequency: Yearly Add: No.13, Sanlihe Road, Haidian District, Beijing, Venue: China International Exhibition Center China, 100037 Exhibits: PV modules and subassemblies, etc. Tel: 86-10-88082075 Add: No.13, Sanlihe Road, Haidian District, Beijing, Fax: 86-10-88082034 China, 100037 Email: [email protected] Tel: 86-10-68311370 Fax: 86-10-88082061 Email: [email protected] Construction, City planning, Decorations 2009 China Chengdu The 3rd Construction Decoration Materials Expo and The 3rd Floor Laying Materials, Technology and 2009 China Xinjiang International Equipment Exhibition Petroleum & Chemical Expo and Xinjiang Date: June 5-June 7, 2009 International Energy Exhibition Frequency: Yearly Date: June 6-June 8, 2009 Venue: Chengdu Century Town New International Frequency: Yearly Convention and Exhibition Center Venue: Xinjiang International Expo Center Exhibits: flooring, carpet, floor tile, plastic flooring Exhibits: petroleum, etc. materials, accessories, consumables and laying Add: No.43, Youhao North Road, Urumqi, Xinjiang, technology, etc. China, 830011 Add: Room 508, Gaosheng Center, No.2, Gaosh- Tel: 86-991-3855921 engqiao East Rd, Chengdu, Sichuan, China Fax: 86-991-3855813 Tel: 86-28-86080319 Email: [email protected] China Military Optical Communications Fax: 86-28-86080309 Technology Exchange Fair Email: [email protected] 2009 The Fourth Shanghai International Date: June 17-June 19, 2009 Energy Saving and Emission Reduction Expo Venue: Beijing Haidian Exhibition Center Date: June 6-June 10, 2009 Exhibits: optical communications system equip- Frequency: Yearly ment, optical fiber and cables, inertial navigation Venue: Shanghai Everbright Convention and Exhibi- system, optical communication components, etc. tion Center Web: www.jygtx.com Exhibits: energy, water, land, materials saving, Add: No.5, Dachenglichun Garden, Fengtai, Beijing, comprehensive utilization of resources, new energy China, 100039 and renewable energy, environmental protection Tel: 86-10-68673374 projects, etc. Fax: 86-10-68673374 Web: www.iese-china.com Email: [email protected] Add: 1905 Shanghai Information Technology Building, 1555 Kongjiang Road, Shanghai, China, 2009 The 5th China Ningxia International 200090 Coal and Energy Industry Expo 2009 The 4th China Chengdu Construction Tel: 86-21-65040153 Date: June 18-June 20, 2009 Science and Technology Expo Fax: 86-21-65623340 Venue: Yinchuan International Convention and Ex- Date: June 5-June 7, 2009 Email: [email protected] hibition Center Frequency: Yearly

48 Venue: Chengdu Century Town New International outdoor furniture and leisure products, gardening Venue: Qingdao International Convention Center Convention and Exhibition Center products, and other relevant technology and equip- Add: Rm 712-715, Shizheng Office Building, No.17, Exhibits: new type wall body, temperature keeping ment, etc. Jiading Road, Qingdao, Shandong, China, 266071 materials, etc. Add: Fourth and Sixth Floor, China Architectural Tel: 86-532-83755508 Add: Room 508, Gaosheng Center, No.2, Gaosh- Cultural Center Building, No.13, Sanlihe Road, Haid- Fax: 86-532-83742577 engqiao East Rd, Chengdu, Sichuan, China ian District, Beijing, China, 100037 Email: [email protected] Tel: 86-28-86080319 Tel: 86-10-88082075 Fax: 86-28-86080309 Fax: 86-10-88082034 Email: [email protected] Email: [email protected] Glass, Ceramics, Plastic, Rubber The Fifth Shanghai International Casting The 14th Beijing International Construction The 8th China International Garden Landscape Industrial Fair Coating Fair Building and Supporting Equipment Fair Date: June 11-June 13, 2009 Date: June 18-June 20, 2009 Date: June 18-June 20, 2009 Frequency: Yearly Frequency: Yearly Frequency: Yearly Venue: Shanghai Everbright Convention & Exhibi- Venue: China International Exhibition Center Venue: China International Exhibition Center tion Center Exhibits: interior wall coating, exterior wall coating, Web: www.c-us-ld.cn Exhibits: casting, casting environmental protection, fireproof coating, etc. Add: No.13, Sanlihe Road, Haidian District, Beijing, labor protection equipment and supplier, analysis, Add: No.13, Sanlihe Road, Haidian District, Beijing, China, 100037 control and instrumentation devices, etc. China, 100037 Tel: 86-10-88082075 Web: www.cftp.com Tel: 86-10-88082075 Fax: 86-10-88082034 Add: Rm 605, A Building, Yangguang Business Fax: 86-10-88082034 Email: [email protected] Building, 1718 Daduhe Road, Shanghai, China, Email: [email protected] 200333 Tel: 86-21-25911355 Furniture, Household Decorations, The 14th International Construction Door, Fax: 86-21-52830921 Woodwork Floor Decorations Window, Glass Technology and Equipment Fair Email: [email protected] Date: June 18-June 20, 2009 The 14th International Furniture (Summer) Frequency: Yearly Exhibition Venue: China International Exhibition Center Date: June 5-June 8, 2009 Exhibits: automation doors, doors and windows, Frequency: Yearly construction curtain wall, construction glass, door Venue: Dalian World Expo Plaza and window processing equipment, etc. Exhibits: real wood furniture, classic furniture, of- Add: No.13, Sanlihe Road, Haidian District, Beijing, fice and business furniture, soft furniture, outdoor China, 100037 furniture, iron furniture, lighting, etc. Tel: 86-10-68317538 Web: www.sinoexhibition.com Email: [email protected] Add: 25F, World Trade Tower, No.25, Tongxing Street, Dalian, Liaoning, China, 1106001 The 14th International Construction Eco, Tel: 86-411-82538638 Building Materials & Urban Service Exhibition Fax: 86-411-82538650 Date: June 18-June 21, 2009 Email: [email protected] Frequency: Yearly Venue: China International Exhibition Center Machinery, Machine tools Exhibits: kitchen and bathroom appliances and 2009 The 3rd DRX Machinery Exhibition hardware, etc. Date: June 19-June 21, 2009 Add: No.13, Sanlihe Road, Haidian District, Beijing, Frequency: Yearly China, 100037 Venue: Shenzhen Convention and Exhibition Center Tel: 86-10-88082075 Exhibits: machine tools and accessories, moulds, Fax: 86-10-88082034 tools, measuring and cutting tools, household hard- Email: [email protected] ware, heating equipment, construction hardware Web: www.m669.com China (Beijing) International Construction Add: Rm. 2602-2603, Bldg. B, Jinyuan Mansion, Steel Structure Expo 2009 Xinwen Lu, Futian Dist., Shenzhen, Guangdong, Date: June 18-June 20, 2009 The 14th China International Woodworking China, 518000 Frequency: Yearly Machinery (Summer) Exhibition Tel: 86-755-83502097 Venue: China International Exhibition Center Date: June 5-June 8, 2009 Fax: 86-755-83502435 Web: www.icsse.cn Frequency: Yearly Email: [email protected] Exhibits: heavy-duty steel structures, light-duty steel Venue: Dalian Xinghai Convention and Exhibition structures, membrane structure of the steel frame Center Add: Fourth and Sixth Floor, China Architectural Exhibits: woodworking machinery, forestry whole- Automation Culture Center Building, No.13, Sanlihe Road, Haid- set equipment, forestry cutting equipment, wood- 2009 The 9th China (Guangzhou) ian District, Beijing, China, 100037 based panel machinery, second processing equip- International Automatic Identification and Tel: 86-10-88082104 ment, bed mattress machinery, etc. RFID Exhibition Fax: 86-10-88082136 Web: www.dlfa.cc Date: June 18- June 20, 2009 Email: [email protected] Add: 25F, World Trade Tower, No.25, Tongxing Frequency: Yearly Street, Dalian, Liaoning, China, 1106001 Venue: Guangzhou Jinhan Exhibition Center The 8th China International Urban Planning, Tel: 86-411-82538638 Exhibits: automatic identification and bar technology, Construction and Landscape Design Fair Fax: 86-411-82538650 intelligence card technology, RFID technology, etc. Date: June 18-June 20, 2009 Email: [email protected] Web: www.scan-china.com Frequency: Yearly Add: No.171, Lianxin Road, Guangzhou, Guang- Venue: China International Exhibition Center The 10TH China Qingdao Inter-National Gift, dong, China, 510033 Web: www.c-us-ld.cn Arts and Crafts and Home Decoration Expo Tel: 86-20-83558353 Exhibits: scene theme art, wood plastic, anti-cor- Date: June 5-June 7, 2009 Fax: 86-20-83549078 rosion wood and landscape construction material, Web: www.cqige.com Email: [email protected]

49 Tel: 86-574-82056665 Fax: 86-10-62186579 Environmental Protection and Fax: 86-574-87296698 Email: [email protected] Water Processing Email: [email protected] airs & Expos China International Tire Renovation and China International Software and F Recycling Application Exhibition Information Service Trade Fair Date: May 28-May 30, 2009 Electronic Intelligence Date: June 17-June 21, 2009 Frequency: Yearly The 8th East China Qingdao International Frequency: Yearly Venue: Shanghai Everbright Exhibition Center Electronic Industry Fair Venue: Dalian World Expo Plaza Exhibits: renovated tires and equipment, tools, etc. Date: June 4-June 6, 2009 Exhibits: system software, support software applica- Web: www.zonyo.cn Venue: Qingdao International Convention Center tion software, embedded software, system integration Add: 1705 Fangqun Apartment, Liujiayao, Fengtai Add: Rm 201, Huajia Building, No.52 Shandong solution, software information service, telecommuni- District, Beijing, China, 100079 Road, Qingdao, Shandong, China, 266071 cation equipment, computer manufacture, etc. Tel: 86-01-87689903 Tel: 86-532-85017077 Web: www.cisis.com Fax: 86-21-87671146 Fax: 86-532-85833615 Tel: 86-411-83628908 Email: [email protected] Fax: 86-411-83635468 2009 The 5th China (Guangzhou) Email: [email protected] International Retail Industry and Electronic Payment Exhibition Date: June 18-June 20, 2009 Sound, Musical instruments, Venue: Guangzhou Jinhan Exhibition Center Lighting Exhibits: modern store, business equipment, com- 2009 China International LED (Shenzhen) merce automation, marketing promotion technology, Exhibition commercial space design and display technology Date: June 19-June 21, 2009 and equipment, etc. Frequency: Yearly Web: www.modernshop.cn Venue: Shenzhen Convention and Exhibition Center Add: No.171, Lianxin Road, Guangzhou, Guang- Exhibits: LED products, neon light products dong, China, 510033 Web: www.e99999.com The 11th China International Environmental Tel: 86-20-83561592 Add: Rm. 2602-2603, Bldg. B, Jinyuan Mansion, Protection Exhibition and Conference Fax: 86-20-85549078 Xinwen Lu, Futian Dist., Shenzhen, Guangdong, Date: June 3-June 7, 2009 Email: [email protected] China, 518000 Frequency: Biennially Tel: 86-755-83502448 Venue: China International Exhibition Center Fax: 86-755-83502435 Exhibits: energy-saving environment protection tech- Email: [email protected] nology, products and service, energy-saving construc- tion, energy-saving automobile, industrial energy con- servation, agriculture energy conservation, commercial energy conservation, energy-saving solution design Add: China International Exhibition Center, Beisan- huan, Chaoyang, Beijing, China, 100028 Tel: 86-15810052179 Email: [email protected]

Hotel, Catering, Tourism 2009 The 17th DEX Electronic Exhibition The 10th China Qingdao International Hotel and DPX Photonics Exhibition Products and Equipment Expo Date: June 19-June 21, 2009 Date: June 5-June 7, 2009 Frequency: Yearly Web: www.cqihe.com Venue: Shenzhen Convention and Exhibition Center Venue: Qingdao International Convention Center Exhibits: electronic equipment, electronic compo- Media, Advertisement Add: Rm 712-715, Shizheng Office Building, No.17, nents, laser products, optical products and FPD and 2009 The 10th DzAX Advertising, Sign Board & Jiading Road, Qingdao, Shandong, China, 266071 accessories Light Boxes Exhibition Tel: 86-532-83755508 Web: www.e99999.com Date: June 19-June 21, 2009 Fax: 86-532-83742577 Add: Rm. 2602-2603, Bldg. B, Jinyuan Mansion, Frequency: Yearly Email: [email protected] Xinwen Lu, Futian Dist., Shenzhen, Guangdong, Venue: Shenzhen Convention and Exhibition Center China, 518000 Exhibits: ad-making system, video processing Tel: 86-755-83502448 system, e-publication, printing systems and public Fax: 86-755-83502435 ad.media Email: [email protected] Web: www.ad555.com Add: Rm. 2602-2603, Bldg. B, Jinyuan Mansion, Xinwen Lu, Futian Dist., Shenzhen, Guangdong, Information Technology, Network, China, 518000 Communication, Broadcast Tel: 86-755-83502441 International Soft China 2009 Fax: 86-755-83502435 Date: June 9-June 13, 2009 Email: [email protected] Frequency: Yearly Venue: Beijing International Center Wedding Dress, Photography Exhibits: system platform software, development Food and Additives, Beverage, Drinks, Seasonings, Dairy Products 2009 Photoics Festival in Taiwan software Date: June 11-June 13, 2009 Web: www.csva.org.cn The 6th China (Guangzhou) International Frequency: Yearly Add: Room 1401, Zhongruan Building, No.55, South Food, Beverage Processing and Packaging Venue: Taipei World Trade Center Nangang Exhibi- Xueyuan Road, Haidian, Beijing, China, 100081 Industry Exhibition tion Center Tel: 86-10-51527167 Date: June 10- June 12, 2009

50 Frequency: Yearly Exhibits: prepress equipment, printing equipment, Venue: Chinese Export Commodities Fair Pazhou post-press equipment and packaging equipment, Others, Comprehensive Complex intaglio printing equipment, accessory equipment, 2009 CDCE The 6th Guangzhou Daily Exhibits: International food processing and packaging paper and paper products Chemical Products Expo technology and equipment, international beer, beverage Web: www.p66666.com Date: June 11- June 13, 2009 and liquid food technology and equipment, manufacture, Add: Rm. 2602-2603, Bldg. B, Jinyuan Mansion, Frequency: Yearly filling, packaging, and PET technology for beer, etc. Xinwen Lu, Futian Dist., Shenzhen, Guangdong, Venue: China Guangzhou Baiyun International Con- Add: Room 1105-1106, Fulitianhe, No.4 Huating Road, China, 518000 vention Center Tianhe District, Guangzhou, Guangdong, China Tel: 86-755-83502097 Exhibits: cleansing, skin care, cosmetics, insect Tel: 86-20-38880410 Fax: 86-755-83502435 killing product, daily chemical raw materials, daily Fax: 86-20-38880408 Email: [email protected] chemical equipment and package products, etc. Email: [email protected] Add: F3, Changde Building, No.177, Changde South Road, Tianhe District, Guangzhou, Guangdong, Education, Training, Culture and Art 2009 The 6th Flavor and Fragrance China, 510665 Exhibition 2009 Shandong International Education Tel: 86-20-85837415 Date: June 11- June 13, 2009 Exhibition Fax: 86-20-61036576 Frequency: Yearly Date: June 14-June 16, 2009 Email: [email protected] Venue: China Guangzhou Baiyun International Con- Frequency: Yearly vention Center Venue: Jinan Shungeng International Convention 2009 The 2nd Wax Products and Raw Exhibits: flavor, daily fragrance, edible flavor and and Exhibition Center Materials Exhibition fragrance, etc. Add: 28 Shungeng Road, Jinan, Shandong, China, Date: June 11- June 13, 2009 Web: www.gh001.com 250014 Frequency: Yearly Add: F3, Changde Building, No.177, Changde South Tel: 86-13964138550 Venue: China Guangzhou Baiyun International Con- Road, Tianhe District, Guangzhou, Guangdong, Fax: 86-531-82910367 vention Center China, 510665 Email: [email protected] Exhibits: wax products, special wax, animal wax, Tel: 86-20-31806185 mineral wax, etc. Fax: 86-20-85635196 Web: www.gh001.com Email: [email protected] Commercial Trade, Chain operation, Add: F3, Changde Building, No.177, Changde South Agency, Import and export Road, Tianhe District, Guangzhou, Guangdong, China Kunming Import and Export China, 510665 Commodities Fair Tel: 86-20-31806185 Date: June 6-June 10, 2009 Fax: 86-20-85635196 Frequency: Yearly Email: [email protected] Venue: Kunming International Convention and Exhi- bition Center The 6th Guangzhou Daily Chemical Raw Web: www.kmfair.org Materials and Equipment Exhibition Add: 13 Floor, Foreign Trade Building, 175 Beijing Date: June 11- June 13, 2009 Road, Kunming, Yunnan, China, 650011 Frequency: Yearly Tel: 86-871-3164305 Venue: China Guangzhou Baiyun International Con- Fax: 86-871-3164304 vention Center FoodTech Taipei 2009 Email: [email protected] Exhibits: compound clean agent raw materials and Date: June 18-June 21, 2009 auxiliary clean agent, etc. Venue: Taipei World Trade Center Web: www.gh001.com Exhibits: food, processing machinery, bakery and Add: F3, Changde Building, No.177, Changde South catering equipment, food machinery, pharmaceutical Road, Tianhe District, Guangzhou, Guangdong processing machinery and package equipment, etc. Tel: 86-20-31806185 Tel: 86-10-67036499 Fax: 86-20-85635196 Fax: 86-10-67036455 Email: [email protected] Email: [email protected] 2009 Europe-Asia SME Cooperation Seminar Date: June 15-June 16, 2009 Medical Care, Health Care Venue: Xi’an Sofitel Renmin Plaza The 14th China International Dental Web: www.europe-meets-asia.com Equipment & Affiliated Facilities Exhibition Add: B 2501, Chuangye Square, No.48, Keji Road, Date: June 10-June 13, 2009 Hi-tech Zone, Xi’an Shaanxi, China, 710075 Frequency: Yearly China Harbin International Economic and Tel: 86-29-88350392 Venue: China International Exhibition Center Trade Fair Fax: 86-29-88350389 Exhibits: dental chair, foundry machinery, X-ray Date: June 15-June 19, 2009 Email: [email protected] equipment and accessories, cement, anaesthesia Frequency: Yearly and operation devices, composite resin, crown and Venue: Harbin International Convention and Exhibi- 2009 China (Guangzhou) International bridge materials, medicine, laser operation, etc. tion Center Analysis Measuring Instrument and Add: B 3, Wudong Building, No.9, Chegongzhuang Exhibits: manufacture, hi-tech, investment and Biotechnology Exhibition Street, Xicheng District, Beijing, China, 100044 cooperation projects, modern service industry, Date: June 18- June 20, 2009 Tel: 86-10-84600822 featured green food, construction material, light in- Frequency: Yearly dustry, foreign exhibition areas, Hong Kong /Taiwan Venue: Guangzhou Jinhan Exhibition Center exhibition area, electronics and machinery, furniture, Exhibits: analysis instrument, measuring and testing, etc. Packaging, Paper, Printing and large-scale machinery Web: www.chinacecia.com publication Add: No.35, Zhenshun Street, Nangang District, Add: No.171, Lianxin Road, Guangzhou, Guang- 2009 The 10th DZX Printing Exhibition Harbin, Heilongjiang, China, 150090 dong, China, 510033 Date: June 19-June 21, 2009 Tel: 86-451-82340896 Tel: 86-20-83561592 Frequency: Yearly Fax: 86-451-82340226 Fax: 86-20-83549078 Venue: Shenzhen Convention and Exhibition Center Email: [email protected] Email: [email protected]

51 Haibao to “tour” the world

ORld exp o World Expo 2010 mascot Haibao is expected to appear in every corner of the world in an online photographic contest launched May 27. Any pictures or photographs featuring w Haibao can be submitted. The pictures can be taken anywhere and photoshop programs are allowed - virtual pictures are definitely permitted. Haibao figures have reached France, Britain, Spain, Japan, the Republic of Korea, Canada and Australia since the unveiling on December 18, 2007. The cute figure has been warmly wel- comed by people in these countries. The figures are also found in the Chinese mainland as well as China’s Hong Kong, Macau and Taiwan. Zhu Yonglei, deputy director general of the Bureau of Shanghai World Expo Coordination, said the competition will take advantage of the Internet to raise Netizens’ interest in the Expo. He hopes people will follow the footsteps of Haibao all over the world and stop in Shanghai in 2010 to experience the glamor of Expo 2010. The competition is part of a series of online pro- motions planned by local officials. It will run until July 26. Anyone interested can upload their pictures or photos to the official Website of Expo 2010 (www.expo2010.cn) or qq.com, CCTV. com, chinanews.com, eastday.com, sina.com and sohu.com. Online voting and expert assessment will choose the winners who will receive travel money, Expo tickets and souvenirs. Some of the entries will be displayed at Expo Shanghai Scene of the launching ceremony. Online.C Haibao appears in middle school PR stars urged to step forward St ude nt s a nd A competition has been launched to choose 200 public relation teachers of Shang- talents for World Expo 2010 and anyone who has professional quality hai Yumin Middle and communications skills is invited to join in. Mao Jingquan, a senior School were glad to organizer of the Shanghai Public Relations Association, said contes- meet the new comer tants should be well behaved, creative, flexible and quick to reply. yesterday — World A good educational back- Expo 2010 mascot ground, capability in management Haibao. For the first and promotions as well as knowl- time, Haibao enters edge of Chinese history and culture a middle school in and world expositions are also re- Shanghai and made quired, he noted. Unlike two similar his debut in Gaoqiao events previously, the competition Students take a photo with Haibao. Town, Pudong New this year is more Expo-oriented and Area, where the campus is located. The statue of Haibao re- will cover the Chinese mainland as ceived a hearty welcome at the unveiling ceremony at the cam- well as China’s Hong Kong, Macau pus. Students could hardly wait to touch the statue and took and Taiwan. The competition will involve four stages and conclude photos with it. Some students gave Haibao a bear hug. The on October 1. The final contest will be broadcast live and online vot- students also wrote down their wishes on specially made expo ing and expert assessments will be involved. PR stars will provide cards and signed on the banner of “Expo Civilization Rules.”C quality services for the 2010 Expo.C

Expo promotion held in South Africa Venezuela Expo promotion activity was held last night in downtown Johannesburg in South Africa. The Expo 2010 will be a very important event for people around the world to enhance economic, scien- signs up for tific and cultural exchanges, tackle the global economic crisis and find a sustainable development Expo path, said Wu Youying, a senior official of Shanghai’s political advisory body. China has long lasting friendship with Africa and Africa has most countries participating in The Bolivarian Re- this event, said Wu, the deputy chairman of Shanghai Committee of the Chinese People’s Political public of Venezuela signed Consultative Conference. She also pointed out that Joint-Africa Pavilion the largest of all joint pa- a participation contract vilions. Wu also said that Expo Shanghai will be the new platform for Sino-Africa friendship and with the organizer of World cooperation. Wu also thanked for Africa’s support for Expo 2010. Expo 2010 via mail May Cao Xingzhi, executive chairman of an overseas Chinese Expo promotion committee in 27. The country will build southern Africa, said that as Africa’s largest economy, South Africa’s participation is crucial for a 3,000-square-meter pa- the success of Expo 2010. Cao also said that they have spent much effort to promote the Expo, vilion in Zone C of the Shanghai and China in southern Africa after the establishment of the committee and the results Expo site showcasing urban turned out to be very positive. equality as well as develop- About 600 people, including South African officials, entrepreneurs and overseas Chinese ing nations’ attention to attended the promotion activity. South Africa is the only African country to build its pavilion in urbanization. Expo 2010 while other African participants tend to rent pavilions from the organizer or present in The theme is “A Bet- the Joint-Africa Pavilion.In the South Africa Pavilion, more than 50 South African enterprises will ter Life, a Better City.” To show their cutting-edge technologies in mining, medicine, biological and aviation industries and date, 207 participants have seek for more cooperation with Chinese enterprises.C signed the contract.C

52 Expo fever in South Africa Poll reveals Expo intentions Expo 2010 mascot Haibao is expected to appear in downtown Johan- Chinese people say they are willing to spend an nesburg in South Africa today and will move to Cape Town, another major average of 1,522 yuan (US$222) each at the 2010 World tourist resort in South Africa, May 30. The two promotions are likely to Expo in Shanghai on food, shopping and other activities, draw the attention of more than 300,000 overseas Chinese in South Africa, according to data from an online survey released May 26. the organizer of the World Expo promotion event said. According to the survey, compiled by worldwide An overseas Chinese Expo promotion committee in southern Africa marketing services company Millward Brown-ACSR was set up in November. It has carried out a series of promotions in South and Ogilvy, 38 percent of the respondents said they Africa, which enhanced local people’s interest in Expo Shanghai. Execu- would visit the Expo. About 80 percent said they tive Chairman of the committee Cao Zhixing said that the Expo 2010 wanted to learn about foreign cultures and arts at the Shanghai is also a grand affair for overseas Chinese. The Expo 2010 needs Expo, while 72 percent said new technology would the contribution from Chinese people all over the world. be one of their main reasons for attending. A total of Its Chairman Zhang Zhengdi said that the committee would spend 13,991 people took part in the survey, held from Feb- more efforts and go extra mile to promote the Expo, Shanghai and China ruary to mid-March across the country. in southern Africa. South Africa is the only African country to build its About half of the respondents said they would pavilion in Expo 2010 while other African participants tend to rent pavil- look at Expo Shanghai Online because visiting the ions from the organizer or present in the Joint-Africa Pavilion. In the South virtual version of the Expo would raise their interest Africa Pavilion, more than 50 South African enterprises will show their in the real event.C cutting-edge technologies in mining, medicine, biological and aviation in- dustries and seek for more cooperation with Chinese enterprises.C Expo opening ceremony set The opening ceremony of the 2010 Shanghai San Marino issues Expo Shanghai stamp World Expo will be held on the night of April 30 next San Marino on May 29 issued a stamp to mark the Expo Shanghai – anoth- year, the Expo organizer said May 27. The ceremony er major event for China after Olympics. The stamp values 2.20 euros (US$3.11). will take place indoors at both the Expo Center and In the forefront is the skyline of Lujiazui area, Pudong, a district in Shanghai, in- Performance Center, as well as outdoors along the cluding the Shanghai World Financial Center, also known as the “bottle opener” Huangpu River. Meanwhile, the organizer also re- due to its unique shape, and an emblem of the Shanghai Expo 2010. To the top vealed May 27 that visitors to the Expo will be able right corner, the stamp shows the image of China Pavilion to be built in the Expo to delight in the singing of Spanish tenor Placido Do- site. Often called as the “Oriental Crown,” it is inspired by the wooden buildings mingo, be thrilled by Canada’s Cirque du Soleil and in ancient China. The stamp also has a sentence of Italian language saying “To- marvel at Shaolin and Wudang kung fu displays. wards Shanghai 2010.” About 680 performances from across the world San Marino’s Azienda Autonoma di Stato Filatelica e Numismatica, the have been selected to perform during the 2010 event, state company for Philatelic and Numismatics, said that Pudong is the mark of and some world famous performers have already con- Shanghai with skyscrapers representing Shanghai’s economic dynamics and firmed their participation, said, May 27. Visitors will China Pavilion inherits traditional Chinese architecture style. also have a chance to watch traditional African per- San Marino’s minister for tourism Fabio Berardi said that San Marino and formances like a drum show from Burundi, Hu said. China have long lasting friendship and San Marino decided to participate in The Expo will have about 1,000 performances and Expo 2010 and issuing stamps to mark the friendship. China’s ambassador to Ita- a total of more than 20,000 sessions during the 184- ly, Su Yuxi, thanked San Marino for issuing the stamp and wished San Marino’s day event. About 100 sessions will be held every day exhibition a success in Expo 2010. Since World War II, San Marino has only at- in 32 outdoor or indoor stages dotted around the Expo tended two World Expos: Brussels Expo in 1958 and Lisbon Expo in 1998.C site. Hu said Domingo is expected to sing in the Perfor- mance Center, and the Cirque du Soleil will perform in Canada Pavilion. There will be no extra charge for Mayor invites Sierra Leone President to Expo those performances unless numbers have to be re- Shanghai Mayor Han Zheng yesterday (May 29) invited visiting Presi- stricted because of demand, Hu added. Shanghai will dent of Sierra Leone Ernest Bai Koroma to visit the 2010 World Expo in provide an opera and a melodrama at the 2010 event.C Shanghai next year. Han told Koroma that for the first time, a developing country hosts the World Expo and “city” is chosen to be the theme of the event. A Joint-Africa Pavilion will stand in the Expo site in 2010. Mayor invites Singapore Koroma said that Shanghai is regarded as “the city of future” and Sierra Leone expects to set up direct business and trade ties with China. Sierra Le- MM to visit Expo one is also seeking further cooperation between the two countries, especially Shanghai Mayor Han Zheng welcomed the arrival on tourism, agriculture and mining industries. Koroma also thanked China of Singapore Minister Mentor Lee Kuan Yew yesterday for assisting those Sierra Leone’s students to study in China. and invited Lee to visit the 2010 World Expo in Shang- China’s ambassador to Sierra Leone Qiu Shaofang and Vice Mayor hai. Han congratulated Lee on the 15th anniversary of Tang Gengjie also attended the meeting.C the Suzhou Industrial Park (SIP), a Sino-Singaporean project. Han also said that Shanghai could learn a lot from the operation and development of SIP. Cambodia signs up for Expo The two exchanged on how Shanghai and Singa- Kingdom of Cambodia signed a participation contract with the orga- pore face up to the global economic down. Lee em- nizer of World Expo 2010 May 27. So far, 208 countries and international phasized the importance of education investment, as organizations have signed up for attendance in World Expo 2010. talent plays a vital role in economic recovery. Lee said The country will rent a 1,000-square-meter pavilion from the organizer he will come to Shanghai to visit the World Expo next in Zone B of the Expo site showcasing the variety of urban culture from an- year and Singapore will support and take an active cient Cambodia to the present day.C part in the Expo 2010.C

53 e xchang cun”; 2) the full-service access network & E services from TSTC; 3) the products from Huaqi, including the MP6 media player and the T1260 panorama digital camera; 4) the 57-inch and 40-inch 3D displays for naked eyes from Celvision Technologies; 5) the products from Rechsand; 6) MBRU/ CWT from Origin Water; 7) new vaccines from SINOVAC BIOTECH; 8) 3G mobile phones and G3 notebooks from TD-SCD- MA Industry Alliance; 9) facility video monitoring and detection system from China TRANSINFO; 10) FH-V088 emer- gency communication system/MDS6800 video dispatch & command system from Jiaxun Feihong; 11) new technology and material from HSbridge; and 12) the 65- CHITEC, Innovation inch laser TV from Phoebus Vision. Electronic companies also show their innovation ability. One of the highlights from Hisense company is China’s first Changes the World LED back-lit LCD TV. Hisense showcases a full range of latest products covering multimedia, home appliances, communi- cations, real estate, and intelligent trans- Yang Wei portation at this year’s CHITEC, such as various flat-panel TVs, air conditioners, refrigerators, and 3G mobile phones, but Platform to show also see some specialty systems and tech- nical solutions underpinning the everyday Pablo Molina Petrovich, general manager architect of Architectural Office Associa- life of the citizens. tion of Chile, is satisfied with what he has achieved by displaying a promotion booth for his China’s leading color TV maker newly-established China office at the 12th CHITEC. “Our Beijing office was just established Changhong, which has been participat- at the early January this year, so it’s high time to promote ourselves to be more familiar with ing in CHITEC for several years in a Chinese. China now is full of opportunities here,” he said. row, demonstrates a new plasma display, The CHITEC in Petrovich’s comments is the “China Beijing International High-tech which is the first one in China with an Expo” for short, and it is the 12th session this year, held in China International Exhibition independent IPR. The production line was Center, Beijing, from May 19 to 24, 2009. The 12th CHITEC is jointly sponsored by the launched in April this year, producing Ministry of Science and Technology, the Ministry of Commerce, the Ministry of Education, more than ten models of plasma TV. This the Ministry of Industry and Information, China Council for the Promotion of International is believed to be a major breakthrough in Trade (CCPIT), State Intellectual Property Office, and Beijing Municipal Government, aim- the development of flat-panel TV industry ing at building a platform for international communication and cooperation. in China. Led by the plasma display proj- As long as Liu Yandong, Politburo Member and State Councilor, delivered a key- note speech entitled “Leading Development with Technology Innovation” at the opening ceremony of the 12th CHITEC on May 19, in Beijing’s Great Hall of the People, a tone of innovation was enhanced to the Expo. Two Nobel prize winners, 2004 Nobel Laureate in Economics Edward Prescott, 2007 Nobel Laureate in Economics Eric Maskin, also attended the ceremony to stress the innovation’s role in our modern life. Innovation concept does have an influence to the Expo results. South Korea delegation this time brought 12 enterprises to the CHITEC, which attracted many eyeballs. To enhance the good reputation yielded, KOTRA (Korea Trade-Investment Promotion Agency) will bring another 100 plus enterprises to hold a special South Korean exhibition at June 23 to 25 at the China International Exhibition Center this year. According to incomplete statistics from the organizing side, during the 12th CHITEC, 107 contracts has been signed for investment, technology cooperation, and trade, with a total value of US$3.926 billion, 39% increasing over that of last session. The CHITEC this Close touch to Zhongguancun. year turns out to have three features. Firstly, the amount of big projects with over RMB 100 million value reached 30, taking up 28% of the total amount, a sharp increase over the last sessions. Secondly, 90% of the capital flow is from the domestic fund, pouring to the coop- eration between central and other provinces, China western and eastern regions as the main- stream. Thirdly, the industrial structure of the investment has been changed, and 32 projects are signed for new resources, recycle resources, and energy saving and environmental protection, taking up 30% of the total amount. The projects of R&D base establishment also takes up 16% of the total amount. Innovated in China Zhongguancun, China’s silicon valley, takes the leading role on China’s innovation road, as well as the CHITEC this year. Highlights of the independent innovation results from China’s first LED back-lit LCD TV by Zhongguancun in this Expo include: 1) the all-round digital video solution “e-Zhongguan- Hisense.

54 ect, Changhong is set to build China’s plasma industry chain. Regional cooperation “The Interactive Exhibition Area of Innovative Technologies from Youth in Beijing” is featured at this year’s CHITEC to show- 28 provinces and cites are participated in the CHITEC this case the capability and level of technology innovation of youth in year and 530 projects are introduced calling for technology sup- the capital region from more than 30 works selected from 150 en- port. The exhibition successfully launched 47 projects’ coopera- tries, including software & chips, electronic & mechanical devices, tion, involving the value of RMB 10.423 billion. instruments & meters, and moulds & models, involving topics of On the first day at the 12th CHITECT, the Hunan delegation, great concern to the public, such as energy efficiency & emissions from mid-south China province, announced 400 key projects, more reduction, electronic information & modern communications, bio- than 180 projects for negotiation, and 17 projects to which agree- medicine, environmental protection, new energy, and utilization of ments were to be signed valuing at RMB 3.386 billion in total, at- reusable resources. tracting more than 500 visitors attended the province’s promotion session. Going-out promotion The national Changsha Economy and Technology Develop- To help Chinese enterprises “go out”, and to increase the ment Zone, the national Zhuzhou New & High Technology Park internationalization level of Chinese enterprises, the “Overseas (Hunan European Industry Park), the Xiangtan Jiuhua Economic Investment Promotion for Chinese Enterprises” was held at this Zone, and the Chenzhou Industry Park were also promoted dur- year’s CHITEC on May 19. This was the 5th consecutive time for ing the session. It’s also the first appearance of the “Changsha- CHITEC to organize the promotion event. Zhuzhou-Xiangtan Conurbation” at the CHITEC. More than one hundred domestic companies have joined in The delegation from Chongqing, a provincial city in mid- the event. Business promotion organizations from a number of west China, also promoted 20 independently developed major countries also debuted at CHITEC, including Think London from technologies, to seek cooperation in terms of funding, technology, UK, the FrankfurtRheinMain GmbH International Marketing of and talents. Among them, there are 8 industry projects, 7 social the Region from Germany, and the Berne Economic Development development projects, and 5 agriculture projects. These projects are Agency (BEDA) from Switzerland. independently developed in Chongqing or jointly developed with It’s the first time for CHITEC to launch special promotion domestic and international partners, with an independent IPR. seminars for U.S. government procurement projects and com- Guangxi, a south-east China province, brought key projects mercial opportunities of the London Olympics, paving a new path from seven industries to the CHITEC, involving local industries of for Chinese enterprises to realize their expansions in international metallurgy, nonferrous metals, machinery, power generation, pet- markets. On the “Sharing Opportunities in London Olympic rochemical, automobile, and food processing. Games” promotion, the London Development Agency and Board of Investment gave a detailed introduction to trade and investment Links opportunities brought by the Olympic Games in London, the in- vestment rules, bidding procedures and the specific participatory The first CHITEC (once was called China Beijing High- methods so as to promote Chinese enterprises to participate in tech Industry International Week) was authorized by State the London Olympic material procurement bid, and help Beijing Council to be held in Beijing in May, 1998. It has been au- Olympics scientific and technological achievements to go to the thorized to be held regularly in Beijing in May every year international market. Promotion of U.S. Government Procurement since the third session in 2000. With the aim of forging inter- Projects, taking “entering the U.S. government procurement market national brand by the organizing committee, it was renamed to show the Chinese brands” as the theme, invited the U.S. Federal as CHITEC in the fifth conference. From the beginning of Procurement Authority to introduce the U.S. government’s pro- CHITEC’s foundation, the organizing committee established curement policies, procedures and the main channels so as to build its’ direction idea as “Beijing builds up a platform to serve all the platform for Chinese enterprises to participate in international country and the world”. competition.

Zhongrun, Heading for Advanced Bio-Energy Technology uaibei Zhongrun Bio-energy Technology Development tion process for the layout and equipment design been basically Co., Ltd. is a high-tech Sino-US joint venture, also a par- completed. Right now it is left to equipment customization, instal- ticipator of the 12th CHITEC. Its majority shareholder is lation and commissioning, and the commercial production is about Anhui Huaibei Mining Group and it is co-sponsored by to begin. HAnhui Guohua Group and US Sun Pharmaceutical Industries Ltd. “Using wood fiber as raw material to produce bio-diesel” is the The major research and development field of the company lies in re- technological breakthrough that has long been dreamed of by the fining technology of cellulosic biomass, production technology, and personnel in the field of cellulosic biomass refining. Government de- the industrialization of development and. partments in some developed countries and well-known enterprises, With the support of Anhui provincial government and Huai- such as the United States Department of Energy and the current three bei municipal government, all the staff in Huaibei Zhongrun bio- major oil companies have been actively explore the development of energy carried on scientific research day and night and has success- this technology. Huaibei Zhongrun’s invention of “bio-oil” produc- fully developed the first generation of “bio-oil” refining technology tion technology has discovered the potential profitability of refining and production process on the basis of their invention of “bio-oil” cellulosic biomass, and a way to increase their peasants’ income. technology. Besides, they have also completed the 2 liters reactor What’s more, it is also a way to solve global warming, to protect the pilot work, with the 1000 liters reactor of semi-commercial produc- earth and to ensure sustainable human development.

55 e xchang Fossil oil is converted from the organic carbon such as the E plants underground for 100-200 million years. It contains a large number of aromatic organic sulfur and organic nitrogen, which are the most important environmental pollutants in their combustion process. However, the elimination of aromatic organic sulfur and or- ganic nitrogen is very difficult. Huaibei Zhongrun’s invention of the “bio-oil” production technology can complete the conversion which the nature needs millions of years to finish. The “bio-oil” is basically with no aromatic organic sulfur and organic nitrogen, and no loss of organic carbon in the process of production. The main components of “bio-oil” are hydroxyl carboxylic acid, single-ring aromatic com- pounds, cyclopentanone alcohol, pentose fiber, amino acids, and so on. These substances are liquid fuels, raw chemical materials, food, food additives, pharmaceuticals, drug intermediates, and so on. So from extraction separation and restructuring, we can get food, medi- cine, food additives, gasoline and diesel, as well as a variety of raw Huaibei Zhongrun’s “bio-oil” production and refining technol- materials to use in the production of biodegradable plastics, resins, ogy has great potential for profit. The production of gasoline and detergents, pesticides, pharmaceuticals, and food additives , etc. diesel are about 20% of the cellulosic biomass, but their output value Huaibei Zhongrun’s invention of “bio-oil” technology opened is of less than 1%. So no matter how the international crude oil price up an entirely new industry in the world: “Biological Chemical Fi- fluctuations, it will not affect the market competitiveness of the “bio- ber”, which is also known as “cellulosic biomass refining for chemi- chemical fiber”. Using Huaibei Zhongrun’s “bio-oil” production and cals, liquid fuels’, and food”. Huaibei Zhongrun defined the new refining technology, the cellulosic biomass produced in China each industry as “the use of cellulosic biomass as raw materials; through year can provide adequate food and chemical raw materials and food the physical, chemical or biological methods, we can prepare chemi- additives, as well as output more than 200 million tons of gasoline cal raw materials, food, and refine liquid fuels.” and diesel at the same time. Kunming Fair, More than Regional Cooperation Alice China Kunming Import & Export Commodities Fair (known as ling export-oriented economic development in Southwestern Area of Kunming Fair) is a regional trade fair jointly sponsored by China’s China. seven local governments, i.e. Sichuan, Yunnan, Guizhou, Guangxi, Up to the end of this May, domestic enterprises which had ex- Tibet, Chongqing and Chengdu. Kunming Fair has been successfully pressed their willingness to participate the Fair reached over 1,200, held annually for sixteen consecutive years since 1993, and embraces covering 13 provinces and cities. Moreover, 500 overseas enterprises its 17th session from June 6 to 10, 2009. During the Kunming Fair, from 22 countries and regions also attend the Kunming Fair, includ- a special South Asia Exhibition is held at the same time, and it is its ing ASEAN countries, south Asia, South Korea, U.S., Russia, Italy, 2nd session this year. Hong Kong SAR, and so on. Both data hit the records of the Fair. After 16 years’ effort, Kunming Fair is on the way to a regional Kunming Fair covers 6 commodity professional pavilions, and fair facing South East Asia and South Asia, integrating tangible 5 theme pavilions to boost the import and export trade and technolo- goods trade, offering service trade and cross-border investment with gy, and economic and technological cooperation. There are pavilions international economic corporation. By this, Kunming Fair is play- for all sectors from Machinery & Electronics; Agricultural Products; ing a more and more important role in improving the circulation IT Industry; Chemicals & Minerals; Light Industries & Textiles; and of productive elements, upgrading of consumption structure and Pharmaceuticals & Healthcare Products. There are also theme pavil- regional economy integration, enhancing the Economic Cooperation ions, including the South Asian Pavilion, International Pavilion, For- in Greater Mekong Sub-region, also serving as a platform of propel- eign Trade Pavilion, Investment Promotion Pavilion, Green Industry Trade Pavilion. Overseas exhibitors could register with CCPIT Yunnan Sub- Council, which provides official services. Last year, Kunming Fair closed the deal of US$2.074 billion five days. Profile of the Kunming Fair Date June 6th – 10th, annually Kunming International Convention & Exhibition Venue Center, Kunming, Yunnan Province, China Organizer The People’s Government of Yunnan Province The Ministry of Commerce of the People’s Republic of China, and seven provincial governments of Sponsors Yunnan, Chongqing, Sichuan, Guizhou, Guanxi, Tibet and Chengdu

56 Chengdu, The Next Destination for International Conferences Yang Wei

his May marks the one-year anniversary of Sichuan’s earth- postal service, telecommunications, advertising, banking and insur- quake, and also one year’s efforts on their home reconstruc- ance industries. And Chengdu is gaining growing global fame by tion. Chengdu, the capital city of Sichuan province, sur- successfully hosting a series of international conferences. vived from the earthquake, now focuses its unique strength Chen Lin, chief director of the Convention and Exhibition toT build a more modern city, and prepares to join in the list of “favorite Development Office of Chengdu City introduced diverse attractive- international conference holding destination”. ness of Chengdu at the forum, to the experts and partners attended. On May 10, the Forum for Building An International Confer- In 2008, Chengdu produced an annual GDP of RMB 350 billion, ence Destination City was held in Chengdu, hosted by the Conven- and fortunately the major of the city remained undamaged in the tion and Exhibition Development Office of Chengdu City. On the earthquake last year. As long as the city’s economic strength and exact day, the forum yielded an initial fruit of 9 signed contracts, competitiveness increasing, Chengdu’s development has boosted a involving World Federation of Chinese Medicine Societies, China wide range of key industries, such as aviation industry, medical and Logistics Technology Association (CLTA), China Chief Informa- pharmacy industry. Based on the enhanced economic background, tion Officer Association (CCIOA), Jing & Kai Investments Co. Ltd., the policy support from the local government arrives in time for the Minority Supplier Development in China Organization, and other conference industry. “Chengdu is the earliest city in China to set up a professional associations and organizations. special public and governmental organization to support the confer- ence holding industry. In this way, enterprises and clients can enjoy higher quality service with a lower price, and also receive full sup- port from human resources, materials, finance, and related sectors,” Chen said. “It’s our aim to build Chengdu to be a destination place of high-end international conferences.” Completed industrial chain also lays solid foundation for the industry development. Chengdu now boasts 7 hotels with 5 stars, 15 hotels with 4 stars, 36 hotels with 3 stars. Travelers can easily discover many familiar world famous hotel names downtown here, such as Shangri-La, Sofitel, Jinjiang, and Celebrity City. Different choices of- fered can meet with the growing and varied demands from the clients. Located in the middle heart of China, Chengdu plays an im- portant role in national rail trans- portation system. Representatives from Chengdu hotel industry and public rela- Shuangliu Inter- tions companies announced their determination of full support national Airport to the further development of the city’s conference industry at in Chengdu ranks the forum. the 4th largest in China, possessing One of the cooperation partners signed at the forum, Jing the capacity of & Kai Investments Co. Ltd., a professional organization engaged over 200 national in arts investment and consultation, is based in Beijing, but has flight routes and worldwide connection with Chinese Taiwan, Singapore and New 25 international York. Its Director Yang Xinyi, an Art History Ph.D from Cornell flight routes. Chengdu boasts rich treasures. University, spoke highly of Chengdu. “Among the cities I’ve trav- Besides, as eled in China and abroad, I love Chengdu very much. My company an expanding chain of conference industry, rich tourism resources organizes many international art conferences and exhibitions each add the charm of Chengdu, which owns many world material and year, and when Mr. Wang Qingdao, Chief Editor of Meetings China, non-material heritages. Long history dating back from the Three suggested me that ‘Why don’t you think about holding conferences Kingdom period (AD 220-280) left the city with abundant cultural in Chengdu?’ I answered, ‘Yes, that is a brilliant idea!’ Today I’ve resources and historical spots. The reputation of the “hometown of already signed an agreement of intent with the Convention and Ex- panda” also releases the precious and gifted natural environment hibition Development Office of Chengdu, and our first practical co- there. operation project could be expected to launch in the next year,” Yang And don’t mention the mouth-watering Chengdu dishes! “When expressed in optimistic. I was in Canada, the most longing food for every overseas Chinese Usually, the conference industry is called the pearl of the crown I know was the Sichuan flavor food,” Westley Zhang, an overseas in the tourism industry. As an integral part of the modern service returnee expressed his strong impression to the delicious memories industry, the conference and exhibition industry has a long industrial he used to keep in his Canadian years. “The most popular Chinese chain connected to many industries. Conferences’ hosting sector restaurants welcomed in western countries are Sichuan restaurants. which involves the flow of commodities, materials, human resources, It’s an interesting opportunity to taste the typical Sichuan local style capital and information, are driving up the city’s consumption in the for foreigners when they travel to their conference destination here,” transportation, accommodation, catering, retail, tourism, real estate, said Zhang.

57 c pit C The Chinese Products Promotion Week (Europe), also the 2nd China-EU Cooperation Forum on Economy and Trade held in Hague On April 28, jointly organized by the CCPIT and the Mu- go global: the first one is the financial crisis has led to the shrinking nicipal Government of Hague, Netherlands, the Chinese Products of foreign assets; the second is all countries are actively improving Promotion Week (Europe), also the 2nd China-EU Cooperation their environment for investment attraction; the third is hardships Forum on Economy and Trade was held in Hague. As invited by the of many countries enhance their demand for Chinese products with Municipal Government of Hague, CCPIT Vice Chairman Zhang fine quality and low price. He then introduced to the 12 events or- Wei led the Chinese business delegation consisting of 150 members ganized by the CCPIT to help Chinese enterprises go through the attending the forum. Over 250 EU entrepreneurs, representatives crisis and promote their products. from governments and business associations attended the forum. Project match-makings between the east and west Chinese outbound investment in five fields As an important event for the Chinese Products Promotion Vice Chairman Zhang Wei delivered a keynote speech on the Week, project match-makings were organized. Nearly 200 Europe- forum, introducing to the measures taken by the Chinese govern- an enterprises and 70 Chinese enterprises carried out approximately ment to combat the financial crisis and their effects and calling on 500 negotiations and reached a number of cooperation intentions on China and the EU to make greater joint efforts to help enterprises trade and investment projects covering over 20 industries such as get rid of the negative influence of the financial crisis. He noted that textile, building materials, food, medical instruments, machinery, China’s quick response to the financial crisis has gained consider- tourism and mining, etc. able results so far with the economic operation data indicating a Chinese enterprises gave a good feedback to the match-mak- better recovery of China’s economy than expected. He also pointed ings, considering the member states of the EU potential markets in out five major fields in which Chinese enterprises make outbound spite of the considerable effects of the financial crisis on China-EU investment to European enterprises, including overseas resources, trade and investment. By attending the forum, Chinese enterprises scientific research and technology, bio-pharmacy manufacturing, realized they should conduct more research on the markets of the construction contracting and service industry. EU member states, especially the consuming habits and potential He emphasized the three advantages for Chinese enterprises to demand of different areas.C

On April 24, organized by On April 23, Industry Machinery on Agricultural Cooperation China-Iraq Products Purchasing the CCPIT, Dongguan Municipal Chairman Wan People’s Government, the China- Jifei met with Fair 2009 successfully held Arab Business Council and the global Vice- Sulaymaniyah Chamber of Com- president of John merce and Industry of Iraq, the China-Iraq Products Purchasing Fair 2009 was successfully held at the Deere of United Dongguan Exhibition International Hotel. Nearly 30 purchasers from Iraq and over 120 Dongguan sup- States Stamp pliers participated in the fair. and the delega- CCPIT Secretary General Xu Hubin delivered a speech at the fair, pointing out that since the tion. During the financial crisis broke out last year, responding to the call from the central government of maintaining meeting, Chair- growth and boosting export, the CCPIT has been striving to help local governments and enterprises, man Wan Jifei functioning as the platform for economic and trade exchanges and inviting foreign purchasers to come introduced to the to China; that this fair was held at the request of the Dongguan Municipal Government, aiming at aid- guests China’s ing enterprises in Dongguan overcoming the negative effects of the global financial crisis, vigorously positive mea- exploring the Middle East market meanwhile recommending premium products to the Iraqi purchasers. sures in response to the interna- More international purchasers are welcomed tional financial Deputy Secretary General Liu Xuecong appreciated CCPIT’s arrangement of the purchasing fair crisis, especially in Dongguan and welcomed the special visit of the Iraqi purchasers to Dongguan, pointing out that the aid- agricul- Dongguan possesses a strong and developed economy with a large number of enterprises, a complete ture policy in- variety of industries and fine quality products, and the municipal government is doing everything to troduced by the turn the crisis into opportunity to help enterprises explore emerging markets in the Middle East and Chinese government. Latin America, etc. He hoped the CCPIT would continue to introduce more international purchases Chairman Wan said that to Dongguan. China has stepped up the subsi- Later, the CCPIT Dongguan Sub-council and the Sulaymaniyah Chamber of Commerce and dies of purchase of agricultural Industry of Iraq signed a MOU for Cooperation with respect to the strengthening of cooperation and bi- machinery for farmers, which lateral trade promotion, agreeing on Iraqi delegations will be organized regularly to purchase in Dong- will create a good market op- guan and bring the premium products of Dongguan back to the Iraqi people. portunity for agricultural ma- chinery manufacturers includ- Successful match-makings ing the John Deere Company. It In the mean time, Chinese and Iraqi entrepreneurs had match-making talks. According to the in- is hoped that John Deere Com- dustry distribution of the Iraqi purchasers, the CCPIT Dongguan Sub-council organized 121 suppliers pany could increase investment to participate in the fair, covering seven major industries of furniture, textile, building materials, home in the Chinese market, contin- appliances, hardware, electromechanical products and light industry products (suitcases and bags, ue to support the development shoes, toys, stationery and halal food, etc). The attending Iraqi purchasers were lingering on the high of agricultural machinery in quality products manufactured by enterprises in Dongguan. China, and make new contribu- Both sides reached a number of purchasing intentions and according to preliminary statistics, the tions for the Sino-US economic purchasing amount at the fair had surpassed 20 million dollars.C and trade cooperation.C

58 G uide

uide to Application, G Transaction and Administration for Duty Reduction or Exemption

oods under duty reduction or that the Customs is unable to complete the 6. Project units (enterprises) shall ap- exemption is a tariff preference registration procedures during the specific ply to competent Customs in advance to go measure that the state gives to the time or to issue the Duty Imposition/Exemp- through the corresponding formalities in qualified enterprises and units. tion Certificate for Import/Export Goods, accordance with the relevant regulations of GWhen enjoying the right of duty reduction Customs may use discretion to prolong the Customs on condition that the ownership of or exemption, enterprises and units shall period after gaining the approval from the the goods under duty reduction or exemp- value this right and assume the responsibil- competent Customs Director or the person tion or the character of the project units ity to apply for, to use, to take care of and that is authorized. (enterprises) are changing because of amal- to deal with the goods under duty reduction gamation, division, assets recomposition, or exemption in accordance with laws and II. Administrative Regulations modification or revocation of stock rights, regulations. In order to make the enterprises 1. Application for duty reduction or dismission, bankruptcy or other reasons for and units understand the requirements for exemption granted for goods must be based termination of the units (enterprises). the application for and supervision over the upon the purpose for private use. Enterprises 7. Customs may conduct audits on goods under duty reduction or exemption, to and units shall not apply for and go through account books, account vouchers, declara- enhance the internal administration and to the formalities for duty reduction or exemp- tion forms and other relevant data as well as promote the sound relationship and win-win tion granted for goods for others in the name goods of the enterprises and units directly cooperation between Customs and enter- of themselves. related to import and export activities within prises and units, here Customs will notify 2. Goods granted with duty reduction the period of Customs supervision and con- the relevant affairs seriously as follows: or exemption belong to goods under Cus- trol over goods granted with duty reduction toms supervision and control. Throughout or exemption and three years afterwards. I. Application Procedures the period of Customs supervision and 8. The party concerned shall clear the 1. Application process: prerecord of control, no unit (enterprise) or individual Customs in advance when the goods under the project of the applying units — examina- may sell, keep transfer, transpose, refit, rent, Customs supervision and control (including tion and approval of Customs for the project mortgage, impawn, shift to other use, or the goods granted with duty reduction or — prerecord of duty reduction or exemption change the use area, the user or the use way exemption under Customs supervision and for the applying units — examination and of goods under specific duty reduction or control) will be dealt with in accordance approval of Customs for duty reduction or exemption without Customs authorization. with the judgement, decision of the people’s exemption — production of the Duty Im- Units (enterprises) or individuals shall gain court or the decision of the relevant adminis- position/Exemption Certificate for Import/ the Customs approval and go through the trative departments. Export Goods by Customs — declaration for relevant formalities to deal with such affairs 9. Project units (enterprises) shall re- importation as listed above or other affairs. port the conditions of the goods granted with 2. Time limit for application: project 3. Customs shall not accept the ap- duty reduction or exemption to the compe- units shall declare to Customs with the hold plication for duty reduction or exemption if tent Customs once a year after the release of complete and valid papers and documents the project units (enterprises) do not apply to of such goods within the period of Customs for examination and approval formalities Customs for going through formalities for supervision and control. for duty reduction or exemption granted for duty reduction or exemption before import- 10. Customs supervision and control import or export goods before importing the ing or exporting goods without any special will be terminated automatically when the goods. reason. time limit of Customs supervision and con- 3. Time limit for Customs acceptation: 4. Project units (enterprises) shall take trol over equipment granted with duty recep- Customs shall complete the procedures for the consequences of losing the Duty Im- tion or exemption is reached on condition application to put on record and to examine position/Exemption Certificate for Import/ that there is no performance violating the and approve the duty reduction or exemption Export Goods owning to their own reason. Customs regulations. Project units (enter- within 10 working days after the second day 5. Under the approval of the compe- prises) shall apply to Customs for termina- when accepting the application under the tent department for project modifications tion with the hold of the relevant papers and condition that the electronic data is doubt- (including modifications of character of the documents if the control termination certifi- less as well as all the papers and documents enterprise, transfer of stock rights, name of cate is needed. are complete and valid. When, owning to the enterprise, legal address, time limit of Periods of Customs supervision and such reasons as clearing the policies, limits cooperation, and list of equipment), project control over goods under duty reduction or of authority for examination and approval units (enterprises) that have been put on exemption are as follows: and technical index that shall ask the Cus- record for duty reduction or exemption shall 1. Vessels, aircrafts: 8 years toms General Administration for instruc- apply to Customs for modifying the record 2. Motor vehicles: 6 years tions, or because of other special conditions that has been put on before. 3. Other goods: 5 years

59 uide

G having paid the payable duties and taxes shall be investigated for criminal liability III. Relevant Provisions about or producing relevant licensing docu- according to law. Punishments of the Customs Law of ment, bonded goods, goods under specific …… the People’s Republic of China duty reduction or exemption and other Article 86 …… goods, articles or inward foreign means A fine may be imposed for any of the Article 82 of transport under Customs control. following acts which violate this Law and Breach of this Law and relevant laws If any of the acts listed in the preceding the illegal proceeds obtained therefrom shall and administrative regulations, evasion of paragraph does not constitute the crime of be confiscated if there any: Customs control, defraud payable impost, smuggling, the Customs may, while con- …… elusion of national inward and outward pro- fiscating the smuggled goods, articles and 2. to open, and dismantle, collect, hibition or restriction in any of the situations illegal proceeds obtained therefrom, concur- deliver, forward, transpose, refit, mortgage, listed below shall be deemed as smuggling: rently impose a fine on the person or persons impawn, keep transfer, replace label, shift …… concerned. When any of the acts listed in the to other use or conduct other treatment on 1. to sell within the territory, with- first paragraph of this Article that constitutes goods under Customs supervision and con- out Customs permission and without a crime, the person or persons concerned trol without Customs permission.

toms shall, basing on the requirements of the enterprises, give priority to dispatching members to examine the goods in the link of combined production or loading/unloading. Guangzhou Customs 5. Urgent customs clearance Customs gives priority to auditing to the import/export goods of above-mentioned Guide to Clearance of enterprises. In the customs clearance spot with excessive import/export goods, cus- toms shall establish “to facilitate customs clearance” window to go through customs Import/Export Goods formalities in advance. These enterprises can contact with the competent customs through an appointment for customs clear- ance procedures during working hours and anagement of the Enterprises goods carried to the customs surveillance holidays. Granted for Convenient and zone. Customs shall directly examine and 6. Release with customs securities Quick Customs Clearance release the goods after arrival of the goods. Because of a temporary inability to 2. Networking declaration provide certain documents (not including MI. What is the enterprise In their offices, the enterprises shall import and export license documents) or granted for convenient and quick apply China E-Port platform and directly other information, customs are unable to customs clearance? declare to the customs at the place where identify the goods classification, assessment Customs General Administration and the goods enter the territory or the compe- of value and other customs clearance condi- the Ministry of Foreign Trade and Economic tent customs. The enterprises shall input all tions resulting in unpunctual examination Cooperation jointly issued policy measures customs data once only. Therefore, the data and release of the goods. To solve such prob- to facilitate customs clearance in 2001 to shall transmit through network among im- lems, customs shall allow above-mentioned further support the development of high- port and export management departments. enterprises to go through customs formali- tech industries. The enterprise who meets Customs examines the declaration electronic ties in advance, in the form of securities rec- the requirements, after application and ap- data and send electronic return receipt by ognized by the customs, and to add on the proval, can apply to one or more facilitative which document audit and cargo clearance document or information and pay duties or procedures for customs clearance. procedures may be made by the enterprises go through other procedures after a specified themselves or their entrusted agents in the period of time. II. What facilitative measures customs clearance spot. Some customs in III. What conditions are required to can the enterprises granted for good condition shall collect duties by nomi- apply for facilitative measures for convenient and quick customs nated bank online. Customs issues electronic customs clearance? clearance enjoy? payment notice to the enterprise, and release Customs clearance measures mainly the goods based on the electronic return re- Any type of the following enterprises include customs declarations in advance, ceipt of bank transfers. can apply to the Customs: networking declaration, rapid transit, door- 3. Rapid transit 1. The large high-tech manufacturing to-door inspection and release, urgent cus- According to the requirements of enterprises (including state-owned enterpris- toms clearance and release with customs above-mentioned enterprises, customs shall es, private enterprises and foreign-invested security. give priority to their goods imported and enterprises), registered with Guangzhou 1. Declaration in advance exported in the different domestic ports (not Customs, engaged in high-tech manufacture To shorten the operating hours of cus- including the goods that the state designate with production included in “Chinese Ex- toms clearance, these enterprises can, in the the ports to import/export), to go through ports of High-tech Products Catalog” jointly case that the description, the specifications customs formalities of rapid transit transpor- compiled by the Ministry of Science and and the quantity of the import and export tation. Technology and Ministry of Foreign Trade goods are determinate, declare to the cus- 4. Door-to-door inspection and release and Economic Cooperation, Ministry of toms in advance and submit related docu- To the import/export goods that shall Finance, State Administration of Taxation ments after import goods shipped and before be examined but be not convenient to be and Customs General Administration, with arriving or within 3 days before export examined in customs clearance spot, cus- export volume over 100 million U.S. dol-

60 lars, can apply to the competent customs for dollars and no smugglings and violations egory A and to whom the government gives nationwide facilitative measures for customs within six months. emphasis to support. clearance. b. the non-high-tech enterprises with Ⅳ 2. Enterprises with the following con- credit for category A, which registered with . How does the enterprise granted ditions may apply to the customs authori- Guangzhou Customs as well as with annual for convenient and quick customs ties in Guangzhou Customs surveillance export volume more than 50 million U.S. clearance go through customs zone applicable to one or more regional dollars (with annual export volume more formalities? measures to facilitate customs clearance than 10 million U.S. dollars in the district of Guangzhou Customs specially sets up procedures: Shaoguan, Qingyuan, Zhaoqing, Chonghua, “to facilitate customs clearance” window at a. the high-tech enterprises with Huadu, Gaoming, Sanshui, Luoding and the customs scene. The enterprise granted credit for category A, which registered with Yunfu) and no smugglings and violations for convenient and quick customs clearance Guangzhou Customs as well as with annual within six months. can go through customs formalities directly export volume more than 10 million U.S. c. the enterprises with credit for cat- in the window in advance.

Guangzhou Customs Guide to “Local Declaration & Port Clearance”

ing trade for home use and, deep-processing through relevant procedures at the compe- I. Characteristic of the supervision cargo cleared for home use; tent customs. mode of “Local Declaration & Port 4. Cargo excepted by other regulations. 3. The declarant goes through the for- Clearance” Ⅳ malities of examination and release at the This new mode means that the consign- . Procedure port customs. The customs decides whether or, consignee or agent (hereafter referred to a. Import the cargo is to be checked or not on the base as “declarant”) could choose any competent 1. After the person in charge of the of risk analysis. If not, the cargo is released customs under the jurisdiction of Guangzhou means of transport or his/her agent has fin- directly. Customs to make declaration and go through ished the customs clearance for the means Ⅴ the formalities of document-checking and of transport upon arrival of the cargo to the . Provision on submitting the form duty-paying, and then finish the cargo-exam- airport or dock, the declarant could input 1. The form-receiving counter of the ination and cargo-release at the customs of- the code of the competent customs to send competent customs takes charge of the in- fice of entry or exit. The new mode separates it an electronic declaration form. Except the spection of documents(such as the paper dec- the declaration of declarant and the examina- enterprises applicable to the facilitative mea- laration form, contract, invoice, packing list, tion of customs. Therefore, it saves the cost sures, other enterprises that need to declare licensing documents, certificate of origin, etc). on declaration and transportation and inures before the arrival of the cargo could input 2. The documents that could only be to the management of customs. the code of the competent customs and send handled at the port customs (such as bill of an electronic declaration form only when entry) should be submitted to the customs II. Definition of competent customs the data of the means of transport is sent in when going through the examination and and port customs advance and confirmed by the port customs. releasing formalities. Competent customs refers to other cus- 2. After the electronic declaration form Ⅵ toms offices beyond the customs office of is checked and released, the declarant shall . Amendment and cancellation entry or exit. submit the paper declaration form and go The amendment and cancellation of Port customs refers to the customs of- through relevant procedures at the compe- the declaration form should be applied to the fice of entry or exit. tent customs. competent customs. In the new supervision mode, the ports 3. The owner of cargo or agent goes Ⅶ of entry and exit now mainly include New through the formalities of examination and . Examination and release Baiyun International Airport and the New release at the port customs. The customs After submitting the paper document Port of Nansha. So the port customs refers decides whether the cargo is to be checked to the competent customs, if the declarant to Baiyun Airport Customs House and Pa- or not on the base of risk analysis. If not, the receives an examination notice, he/she could nyu Customs House. cargo is released directly. go through the formality of examination by himself/herself or by an agent; the cargo b. Export III. Terms of application whose owner doesn’t receive such a notice is All cargoes are applicable to this su- 1. After the cargo arrives at the port released directly at the post customs. pervision mode except the following: and gets the proof of optimum arrangement, Ⅷ 1. Reclaimable import waste materi- declarant shall input the code of competent . The issue of certified customs als, including copper scrap(tariff number customs and send it an electronic declaration declaration form 7404), aluminum scrap(tariff number form. The enterprises applicable to the facil- After the cargo is examined and 7602), steel scrap(tariff number 7204), itative measures or approved by the customs cleared, the declarant could apply to the waste plastics(tariff number 3915), waste could send the form in advance. competent customs for issuing certified cus- paper(tariff number 7602)etc; 2. After the electronic declaration form toms declaration form. 2. Transit cargo; is checked and released, the declarant shall 3. Tariff-surcharged cargo of process- submit the paper declaration form and go (Source: China Customs)

61 ravelog simple happiness here. “Why not go to the T bar street nearby, as the locals do?” Triback couldn’t wait for his fresh taste research. The area around the Drum Tower and Bell Tower, along with the streets surround- ing the Great Mosque, has long been the most popular tourist area in Xi’an city. This Shaanxi Impressions time, my first visit there was with Jonathan, an American expat from Shanghai, who traveled to Xi’an for business. It was late at night but still rather busy. I was very much impressed because even though it was his first trip here, he still recommended a spe- cial restaurant named “Red Red Sour Spicy Rice”, where he claimed to have the best sour spicy rice served. A big hill-like plate of delicious rice costs only 6 Yuan here, still relatively expensive in Xi’an, as the restau- rant has to pay rent on the busiest street in the city. “If my hotel room had a fridge, I would surely take it back for my breakfast tomorrow morning,” Jonathan looked at the unfinished plate of rice with a greedy smile, and continued his work by fetching another By A7 spoon of rice and throwing it into his mouth. The fact was that we both had a satisfying banquet at a dinner reception earlier, but we the best kind of promotion for a city. More Ancient, but longing to be modern didn’t stop eating the rice until there was people will come to visit, and it will be- none left. In most people’s eyes, Xi’an, the capi- come a more modern city, like Beijing and My farewell visit to the Mosque street tal of Shaanxi, a province in western Chi- Shanghai.” While the girl nodded her head saw the same busy night, crowded by people na, is an alias for “Ancient China”, which in agreement, I began to notice that a sudden and vehicles all around. “I’ll surely be back is also what Patricia from Arizona, U.S., shift from the ancient to the modern had se- to Xi’an again,” Westley, my venture-taking- who was sitting next to me on my Xi’an cretly happened. Xi’an is now eager to show mate this time, a Beijinger in Xi’an on a flight thought as well. “My husband and I its ancient charm, but in a modern way. business trip, smacked his lips and said, managed to spend one precious day there in You can enjoy the ancient City Wall “The brochette here is so impressively tasty our busy China trip schedule, just to have that surrounds the central part of Xi’an, the that it’s the best I have found in China! And, a look at the great Terra Cotta Warriors,” largest and most complete city wall that has guess what, I ate 69 brochettes last night! Patricia’s eyes were glimmering as we set survived in China, and at the same time you Oh, don’t open your mouth so wide. It’s no off flying towards history. The Terra Cotta will find elsewhere long temporary walls big deal when good appetite meets delicious Warriors are the masterpiece of the First with subway construction going on behind food.” Qin Emperor, whose dynasty dates back to them. “Go see how terrible the traffic jam is BC 221 - BC 207. Actually, I would prefer during the peak hours!” A local Xi’an girl Hospitality kills lonely to refer to the city as “Chang’an”, which sitting next to me on the bus nearly jumped, Since I was born lacking a sense of used to be the city’s name in the Tang when I argued that Xi’an should not build a direction, the first thing I’ll rush to do when dynasty (AD 618 - 907) when it served as subway, due to the concern that too many arriving in a new place is looking for a map, China’s capital during the most prosperous national treasures may be buried under these and clearly marking the location of my hotel, period in ancient Chinese history. historic grounds, which would be possibly as well as my scheduled visiting destina- The pride of the Tang dynasty can be damaged by digging. “It is a vital symbol tions, and other interesting spots. Without a felt just walking along the street in Xi’an, that a modern city have subway transporta- map (or a GPS) in hand, I’d probably get lost and strongly proven at the Shaanxi History tion. Look at examples like New York and in the city! Common sense tells me that each Museum, where a large percentage of exhib- Paris, or even Beijing and Shanghai,” the newspaper and magazine booth on every its are focused on displaying the history of girl’s response further confirmed the un- street corner sells a Chinese version of the the Tang dynasty. The provincial museum is doubtedly developing trend. Though there is city map, which usually costs between 3 to 6 free for anyone who brings their ID, and is still a question mark hovering over my head, Yuan, depending on print quality. However, also famous for its long queue. “You’d better “Is it really so important to label the city where could I find an English copy, I won- get up early tomorrow to visit the museum,” ‘modern’ by constructing a spider network dered. the taxi driver offered me this kind sugges- of subways?” I can tell you that for the peo- First, I asked help from an Australian, tion when I took her taxi one afternoon and ple who live in this ancient city, everyone’s Patrick, who owns a business in Xi’an, I told her I would like to go to the museum. eyes are looking to march ahead towards thought surely he must know the easiest way And here is another useful tip, you should modernization. to get an English map. To my disappoint- bring some food and water, at least enough Busy because of taste ment, “Sorry, I don’t know. I never had the for the two hours waiting in line before get- need to read a map here,” was his answer. ting a precious ticket. The closing time of “I like the city. It’s nice to find that so I had to set out on my adventure alone, the museum is 4:30 pm, however, it is highly many people are still enjoying their lives so without a map. With the guidance from a likely that by 2:00 pm today’s visitor capac- late at night.” Triback, a Moroccan reporter hospital bus-ticket selling conductor, I was ity has already been reached. A Xi’an boy said in a quiet smile, while walking along informed that the biggest bookstore in the chatted with his female friend while killing the Big Wild Goose Pagoda Square. Life is city was near the Bell Tower, and that there time in the long queue, “A free museum is hustle and bustle in harmony and there is a was a possibly that they would have one.

62 Totally blind as to where I was, I insisted on was spent on some unnecessary luxury un- Have fun in the show time! moving only by bus and on foot, though it der this or that title?” was a challenge it allowed for real explora- To call it a successful trip, a big confer- tion of the city. Expensive but have to pay ence was often in need as a ceremony. The “No, you can’t walk there. It’s too far The next day, the agenda said we hosts of the conference were very excited away. You’d better take bus number... Wait would go to a housing project built by and nervous as well, because the audience a minute...” A kind sales girl at a bakery an- another local county government, a perma- in attendance was much larger than they swered my question of where the bookstore nent residence for the peasants who used to had expected, and the meeting room lacked was while ringing up the bill for me. She live high up on Qinling Mountain. Differ- enough space and chairs to go around. (Ac- also needed to check with another colleague ent from the variety of architectural designs tually, this is a common phenomena in Chi- in the little shop, ensuring that the highest I saw earlier coming down the road, all of na, never enough.) Crowded in a room filled quality she can offer to me was not only the the houses in the project were all carved with black-haired heads, some of which cake. “Yes, bus number 26 will take you in the same style. In this building project, were grey and golden, the opening address there,” she said as sweet as the cookies in there were 4 rows of houses. Part of the was welcomed with loud applause. her hand. By asking for directions at each houses behind the first row were still under Then a dizzying storm of flashing lights intersection, I finally found the bookstore, construction, and the 4th row of houses had and spotlights followed. Photographers and which indeed had an English map of the only 4 houses, (compared with nearly 20 journalists were busy taking pictures of the ancient city, 8 Yuan. However, on my arrival houses in the first row), which seemed to VIP speakers that day. All kinds of cameras at the bookstore, I suddenly realized why a have a still unknown completion date. Most were lifted high and focused close attention map is not a necessity for Patrick, as every- of the houses were empty that day, with on the speakers. It was a physical work as one here makes an effort to help you with locks on the doors. The local receptionist “few speakers know how to cooperate with their best. explained that it was the high season for the lens. They seldom raise their eyelids, as looking for work outside, and also that it they are always concentrating on reading Luxurious, but not self-paid was a busy period for farming. Surely, his the paper draft in their hand,” explained by a After a few hours’ drive from Xi’an, explanation can’t cover the fact that some veteran. with constant bumped up and down along of the finished houses which nobody moved Video-takers were luckier as they the Qinling Mountain roads, a reporters’ in. “And the removal work (from Qinling didn’t have to seize the precious few chances team and I came to a developing county in Mountain) is still moving along,” he added. of capturing the VIPs’ smiles, instead the re- southern Shaanxi, according to the schedule, An accidentally at home family, con- cord made by two or three video cameras at and we finally stopped in front of a brand sisting of a young couple and their 2 year-old different angles would do the job for them. new, and very luxurious, villa-style hotel daughter, became the stars of the afternoon, “Leave the work to the machines,” they said. where we would stay for the night. The being surrounded by a group of talkative Speeches at the conference were usu- vast hotel is a part of a chain restaurant and media servants. The young mother sup- ally not attractive enough to capture the non- hotel group, the owner of which also oper- plied some data: the government subsidy stop 2 to 4 hours of the audience’s attention ates businesses in downtown Xi’an, and is for moving in, RMB 2,000 per capita; the (some kind conferences may have a teatime closely connected with local governments. commercial price of the house, RMB 1,500 break in the middle of half day schedule). From the hotel’s unique view (built per square meter; and the maximum sal- Also, some speakers just didn’t know when upon the Qinling Mountain), lavish decora- ary of her husband if he works on a stone- to stop. Their lectures in a monotone voice tion (a separated shower and bathtub in each explosives team during the busy season (what turned into cradlesongs for the ears of some standard room), expensive price (double that is locally the most popular career), around tired audience members, who forgot where of hotels in downtown Xi’an, yet still so far RMB 2,000 per month. I began to calculate they were and fell into sleep. away), we all concluded that it was definitely how long they would have to pay off all the But the most interesting sight came a shinny 6 star hotel, before the official es- money that they had borrowed for these 70 near the end. As usual, a kind of agreement timation had been made. It’s a reflection of square meters. or contract signing ceremony would be or- human brilliance and intelligence to build The family is not used to applying for ganized as a symbol of a successful closing. such a castle as this in the half-air (actually loans from a bank, but feels it is more easy Red velvet tablecloth, documents in duplicate, half mountain), but who will really come and reliable to turn to their relatives and signatures exchanged, handshakes with bright to stay here, as few tourism resources are friends. After obtaining friendly financial smiles, champagne celebration with toasts, nearby, I can’t stop wondering. The answer aid with zero or little interest, they seemed and of course, another round of even more seemed obvious that it won’t be common to be able to live like normal urban citizens: fierce camera light flooding the room. A hu- tourists. paying for the commercial residential build- man wall formed very close to the front desk, However, when we were told that 26 ing by square meter, paying for electricity consisting of a large journalist group from officials from the local county were also according to the meter, paying for running known and unknown media organizations, staying in the hotel in order to offer a more water, but they still keep raising their favor- the friends, colleagues or relatives of anyone convenient channel for us to get information, ite hens and cocks in their small backyard. who was standing on the stage, and a handful a sudden stroke of wisdom struck my head. Compared with the average local purchas- of secret fans of any of those VIPs in front. “Yes, it is they that would pay the bill. They ing ability and generally low incomes, I It could have been a cheerful perfor- are the target clients of this luxurious hotel,” assumed that it would be much cheaper to mance, but one without an actual audi- a little voice in my heart pondered. The scale build a house by themselves, rather than ence. All that the patiently waiting and of the local officials’ group was so large that buying cement square meters from the local energetically-awake audience could see was the arrangement of special 1-on-1 interviews government and real estate companies. “But the shape of the back of that airtight human for the entire team of reporters could be we don’t have any land possessions here. wall. Either that they didn’t care at all, and achieved, but of course no one would bother What we have is up on the mountain, and were already dreaming about something else to knock the door of their hotel rooms and now that area is completely wild. Some of far far away. raise questions to these unknown officials. the residents still live there, since they are Maybe we just need an excuse to relax our- used to that lifestyle and it costs less, despite (The views expressed here are selves without feeling guilty, but I still can’t of taking the risk of mudslides,” the young those of the author and do not neces- stop thinking, “Do the taxpaying citizens woman argued. To move or not to move, that sarily reflect those of CFT or any other really know that a part of their money paid really is a question. organization.)

63 RULE 64 of infringement, the Customs shall give give shall Customs the infringement, of suspected goods the of detainment from Customs. ofproval the ap upon Customs the by detained goods Customs. the by detainment of date the export, or port im of declaration of date the consigners, or consignees the of name the goods, the in of value and amount holders name, the of IPR writing the notify shall it ment, infringe of suspected goods the detains its/his application and notify the IPR IPR the notify and writing. in holder application its/his down turn shall Customs the 15, Article of provisions the with accordance in tee guaran provide the to fails or it/he herein 14 Article of provisions the with pliance com in not is that application an submits Customs. by the prescribed limit time the within Customs to goods the value of the to equivalent guarantee a vide pro shall it/he of infringement, suspected goods the detain to Customs the requests upon 3Detainment Chapter Article 18 Article the inspect may holders IPR The Article 17Article 16 Article Article 15 Article of the People’s Republic of the for China Implementing Protection II) ofRights (Part Intellectual Property Regulations of the People’s Republic of on Customs China Decree of the GAC on May 25, 2004 shall be repealed simultaneously. repealed be shall theGAC2004 of May on 25, Decree 114 No. by promulgated Rights Property Intellectual of Protection Customs on China of People’sRepublic the of Regulations the Implementing for China of Republic People’s the of Customs of Gen Administration the eral of Measures The 2009. 1, July on effects take which promulgated, hereby is 17,2009 Feb. on (GAC) Customs of Administration General the of meeting executive the at passed and discussed Rights Property Intellectual of Protection Customs on China of People’sRepublic the of Regulations the menting The Measures of the General Administration of Customs of the People’s Republic of China for Imple for China of People’sRepublic the of Customs of Administration General the of Measures The Application

Within 20 working days days working 20 Within Where an IPR holder holder IPR an Where Where an IPR holder holder IPR an Where Where the Customsthe Where easures of the General Administration ofof Administration Customs theGeneral ------compliance with the provisions of the the of paragraph. provisions preceding the with in writing compliance in holder IPR the notify and goods the release shall Customs the right, patent any infringing of suspected their goods release to Customs the request ors the goods to the Customs. Customs. the to goods the of value the to equivalent pro deposit a and vide application written a file they shall Regulations, the of 19 Article with accordance in Customs by detained right and patent any infringing of suspected goods their of release request consignors Customs. of the consent upon Customs the by detained goods the spect infringement to the consignees or con or signors. consignees the to of infringement suspected that goods detained the of voucher detainment the send it shall ment, infringe of suspected goods the detains it to release the relevant goods, it shall shall it goods. said the release goods, relevant the release to it request holder IPR the the of or notice Court People’s assistance detainment the receive not does it if Court; People’s the by goods relevant detain to assistance on notice written the receives it if assistance Where the consignees or consign or consignees the Where 20 Article The consignees or consignors may in may consignors or consignees The Article 19 Article

Where consignees or or consignees Where Where the Customs Customs the Where - - - - - Customs has reasons to believe the said said the believe to reasons has the Customs or paragraph, preceding the of sions provi the with accordance in documents certification relevant submit and goods their of IPR of conditions the declare to pre the period. scribed within documents certification relevant submit and goods conditions their of IPR of the declare to consignees or consigners the require may GAC,it the at filed been not has manufacturer or porter ex or importer the of IPR relevant of use the and GAC the at filed IPR any involve goods or exported imported any it If finds goods. exported and supervi imported the on sion and administration implement 4 Chapter paragraph. preceding ofthe provisions the to ac cording Customs the of receipt notice of written date the of the from days working 30 within Customs the to People’sCourt the of notice acceptance case the of copy the submit shall Court People’s the dispute with infringement patent concerning If the consignees or consignors fail Article 21 Article lawsuit a files that holder IPR The and Investigation Functions and Powers and Functions to according Treatment

The Customs shall shall Customs The ------goods are suspected of infringing the IPR were less than RMB 200,000 in the previ- ors may request the Customs to release filed at the GAC, it shall suspend release ous year, the amount of the overall guar- the goods after providing a guarantee of the said goods and notify the IPR hold- antee shall be RMB 200,000. equivalent to the value of the goods. If the er in writing. The IPR holders that request the Customs agrees to release the said goods, Article 22 IPR holders shall give Customs to detain the imported or ex- it shall handle the issue according to the a reply in accordance with the following ported goods suspected of infringing provisions of Paragraph 2 and 3 of Article provisions within 3 working days upon their special use right of trademarks filed 20 herein. receipt of the written notice of the Cus- at the GAC according to Article 16 of the Article 29 Where the Customs fails toms prescribed in Article 21 herein: Regulations from the date of use of their to confirm whether the relevant goods in- (1) If believing the relevant goods overall guarantee approved by the GAC fringe the IPR of the IPR holder, the IPR infringe their IPR filed at the GAC and to Dec. 31 of the year do not need to pro- holder may apply to the People’s Court for requesting the Customs to detain the said vide any guarantee separately, unless the taking measures for ordered termination goods, they shall submit the written ap- IPR holders fail to pay relevant expenses of infringement or property preservation plication for detaining the goods suspect- according to Article 25 of the Regulations according to Article 23 of the Regulations. ed of infringement and provide guarantee or bear liability of compensation accord- The Customs that has received the according to Article 23 or 24 herein; or ing to Article 29 of the Regulations and written notice of the People’s Court on (2) If believing that the relevant goods the GAC issues the notice on performance assistance in detaining the relevant goods have not infringed their IPR filed at the of guarantee liability to the guarantors. within 50 working days upon detainment GAC, or not requesting the Customs to Article 25 Where an IPR holder of the goods suspected of infringement detain the goods suspected of infringe- submits an application according to Item (1) shall give assistance. If the Customs has ment, they shall give a written statement of Paragraph 1 of Article 22 herein and pro- not received the notice of the People’s of the reasons thereof to the Customs. vides the guarantee according to Article 23 Court on assistance to detainment or the The IPR holders may inspect the rele- and 24 herein, the Customs shall detain the IPR holder request the Customs to release vant goods upon consent of the Customs. goods suspected of infringement and notify the relevant goods, the Customs shall re- Article 23 The IPR holders that the IPR of the same in writing. If the IPR lease the said goods. request the Customs to detain the goods holder has not filed any application or pro- Article 30 Where the Customs has suspected of infringement in accordance vide the guarantee, the Customs shall release made the decision on confiscating the with Item 1 of Paragraph 1 of Article 22 the goods. infringing goods, it shall notify the IPR herein shall provide guarantee to the Cus- Article 26 The Customs that has holder of the following information that is toms according to the following provi- detained the goods suspected of infringe- known in writing: sions: ment shall send the detainment voucher (1) The name and amount of the in- (1) If the value of the goods is less for the detained goods suspected of in- fringing goods; than RMB 20,000, a guarantee equivalent fringement to the consignees or consign- (2) The name of the consignees or to value of the goods shall be provided; ors. consignors; (2) If the value of the goods is be- The consignees or consignors may in- (3) The declared import or export tween RMB 20,000 and RMB 200,000, spect the goods detained by the Customs date of the infringing goods, the date of a guarantee at the value of 50% of the upon consent of the Customs. the detainment by Customs and the date goods shall be provided and the amount Article 27 The Customs shall, when the punishment becomes effective; of the guarantee shall be no less than after detaining the goods suspected of in- (4) The leaving and arrival places of RMB 20,000; or fringement, conduct investigation on the the infringing goods; and (3) If the value of the goods exceeds said goods and other relevant situations. (5) Other information concerning the RMB 200,000, a guarantee of RMB The consignees or consignors and IPR infringing goods that the Customs may 100,000 shall be provided. holders shall give assistance in Customs provide. The IPR holders that request the investigation and provide relevant infor- If the People’s Court or the competent Customs to detain the goods suspect of mation and evidences truthfully. IPR department need the assistance of the infringing the special use right of their The Customs that conducts investiga- Customs in obtaining any evidences rel- trademarks in accordance with Item 1 tion on the goods suspected of infringe- evant to the imported or exported goods of Paragraph 1 of Article 22 herein shall ment may request the competent IPR de- when handling the infringement disputes provide an overall guarantee to the GAC partment to provide consulting opinions. of the parties concerned, the Customs according to Article 24 herein. Where the IPR holder and the con- shall give assistance. Article 24 The IPR holders with signees or consignors reach an agreement Article 31 In case the Customs their special use right of trademarks filed on the goods suspected of infringement, finds any articles carried or mailed in or at the GAC may submit to the GAC the provide a written application with the out the border by an individual are sus- letter of guarantee issued by a bank or a relevant agreement attached and request pected of infringing the IPR as prescribed non-bank financial institution upon ap- the Customs to release the said goods, in Article 2 of the Regulations and be- proval of the GAC to provide an overall the Customs may terminate its investiga- yond the personal use and the reasonable guarantee for their application for Cus- tion unless it holds there is any suspected amount, it shall detain such articles, un- toms protection measures for their special crime. less the passenger or receiver or sender use right of trademarks. Article 28 Where the Customs announces abandonment to the Customs The amount of the overall guarantee conducts an investigation on the goods with consent by the Customs. shall be equivalent to the sum of expenses suspected of infringement while failing The IPR holder shall give assistance of warehousing, safekeeping and disposal to confirm whether the goods infringe the when the Customs is conducting investiga- of the goods suspected of infringement relevant IPR or not, it shall notify the IPR tion on the infringing articles. If the in- that the IPR holders applied to the Cus- holder and the consignees or consignors ward/outward passengers or the receivers toms for detainment in the previous year. in writing within 30 working days upon or senders of posts believe their articles de- If the IPR holders have not applied to the detainment of the said goods. tained by the Customs do not infringe the Customs for detaining any goods sus- Where the Customs fails to confirm relevant IPR or are for personal use, they pected of infringement or the expenses of whether the goods infringe the relevant may give a written statement thereof to the warehousing, safekeeping and disposal IPR or not, the consignees or consign- Customs and provide relevant evidences.

65 RULE 66 sion on confiscation of the goods to the the to goods the of confiscation on sion within 3 months upon sending of its deci goods infringing the Cus dispose to fails the toms If Customs. the by detainment after goods said of the time storage actual the to according goods of the disposal and safekeeping of warehousing, expenses the pay shall holder IPR the goods, infringing goods Customs. the the at of detainment their during disposal and safekeeping warehousing, of expenses the pay shall holder IPR the goods, re detained or the lease infringement of suspected the goods detaining in Court People’s the sists supervision. necessary duct con shall Customs the goods, infringing the receives the destroy to Customs of the entrustment holder IPR the under or welfare takings public for Customs the by confiscated goods the use institutions welfare public relevant the Where goods. infringing the destroying in Customs the to IPR assistance The necessary give goods. shall holder infringing the of tion auc before holder IPR relevant the from destroyed. be shall they two paragraphs, preceding the to according handled or treasury; the to submitted be shall from goods such of auction proceeds The features. infringing the of elimination after law to according auctioned features be shall they removed, be may infringement their and graph para preceding the to according handled compensation; with holder IPR the to or undertakings welfare public to for institutions welfare public transferred relevant the be shall goods the them, purchase to holder IPR intends orthe ings undertak welfare public for used rectly ing to the following provisions dispose confiscated: goods dispose infringing the with provisions following the to ing authority. security public the to case the transfer shall Customs the crime, any of suspected are practices fringement 5 Chapter from the date of announcement by the the by Customs. announcement of date the from months 3 articles or goods said the fiscate the con may out Customs the concerned, find parties to impossible is it if while Regulations, ofthe 28 Article and 27 ticle Ar of 1 Paragraph of provisions the with be accordance in Customs the by shall confiscated articles or goods such tigation, as IPR inves any through Customs the by confirmed infringed have exist or articles ing entering or goods exported or Where the Customs confiscates the the confiscates Customs the Where 34 Article opinions solicit shall Customs The be cannot goods relevant the If (3) be cannot goods relevant the If (2) (1) If the relevant goods may be di be may goods relevant the If (1) The Customs shall accord shall Customs 33 The Article in export and import the Where 32 Article Expenses Thereof Expenses and Goods of Disposal

Where the Customs as Customs the Where Where the imported imported the Where ------fails to receive the execution assistance assistance execution the receive to fails Customs the If preservation. property for Court People’s the to con apply or may signors consignees the Customs, the to holder IPR the by provided guarantee the to respect With consignors. or consignees the by submitted deposit the return shall Customs the People’s the Court, of notice acceptance case of copy the the provide to fails holder IPR the If People’s Court. the of decision the with accordance in signors con or consignees the of deposit dispose the with shall Customs the the of 19 Regulations, Article of provisions the with accordance in right patent any ofinfringing suspected are that goods detained the released has Customs the after 20 of Article 3 Paragraph with accordance in Cus toms the to Court People’s the of notice acceptance case the of copy the submits Customs shall give assistance. give shall Customs the People’sCourt, the of notice sistance as execution the receiving When antor. or holder guar ofthe liability IPR guarantee the the release to shall deposit the Customs return the goods, the or released infringement of suspected goods the detaining in Court People’s the assisted Customs the after days working 20 within holder IPR the by provided against guarantee the measures preservation property adopting on Court People’s the of notice assistance execution the receive to fails Customs the Where guarantee IPR. the by the provided of preservation for property Court People’s the to apply may ors consign or consignees the Regulations, the of 24 with Article of (4) and (1),(2) Items accordance in release goods or detained the infringement, of goods the suspected detaining in Court People’s es. expens relevant of settlement and goods of disposal after guarantor the of liability guarantee the release or holder IPR the to deposit the return shall it goods, fringing its/his liability of guarantee. liability its/his IPR the by perform to guarantor the require or holder provided deposit the expenses from relevant the deduct may toms Cus the herein, 34 Article ac with in cordance expenses relevant the pay to fails according to the relevant provisions. relevant the to according handled be shall auction for herein, expenses the 33 Article of 1 Paragraph Item of (2) with accordance in goods fringing expenses 3 months later. later. 3months expenses relevant the pay to required not is holder IPR the goods, of disposal of respect the in reasons special other or consignors, or consignees the by proceedings istrative trativeadminis reconsiderationof application or the filing to of admin due not is failure such and consignors or consignees Article 36 Article the assists Customs the Where If the Customs confiscates the in the confiscates Customs the If Article 35 Article Where the Customs auctions the in the auctions Customs the Where

Where the IPR holder holder IPR the Where Where an IPR holder holder IPR an Where ------notice, it shall give assistance. give it shall notice, assistance execution the receives Customs the If guarantor. the the of liability release guarantee or the holder IPR the return to deposit consignors, and the consignees by submitted deposit the of the disposal since days working 20 after shall, it holder, IPR the by provided against guarantee the measures preservation property adopting on Court People’s the of notice pealed simultaneously. pealed re be shall 2004 25, May on GAC the ofDecree 114 No. by promulgated Rights Property Intellectual of Protection toms of People’s the Republic on of Cus China Regulations the Implementing for of China Republic People’s the of Customs of The Administration 2009. 1, General the ofJuly on Measures force into enter on them. on sign and copies the on original” the with the with “identical of term copies the add and originals, said the check herein shall provisions the with accordance in documents relevant submit the of copies that the consignors or consignees due. date the on Customs of the hour the working the of end the be guarantee, shall or deadline documents submits and due, date 24:00 be the on shall deadline the bank, or office post through Customs the to guarantee or documents provisions: following the to according determined be shall limit time the of deadline no The tice. written Customs’ of service of date the of day following the from calculated be shall herein 22 Article of 1 Paragraph and 20 Article of 3 Paragraph in scribed 6 Chapter giving, mail, fax or other means. other or fax mail, giving, direct by served be may herein 28 21and 17, Articles in prescribed as Customs the ac Customs the law. to cording by estimated be shall goods the of value the determined, be not can price strike the If goods. the of price strike the of basis the on Customs the by determined and checked be shall herein tions. institu financial non-bank or of banks tee - refers of to deposits andthe letter guaran in. here provisions the to reference by Expo World and Olympics of symbols the tect Article 43 Article 42 Article directly holder IPR the Where (2) submits holder IPR the Where (1) Article 41 Article 40 Article 39 Article 38 Article 37 Article The General Administration Administration General The Provisions Supplementary Supplementary

The Customs shall pro shall Customs The The “guarantee” herein herein “guarantee” The The value of the goods goods the of value The These Measures shall shall Measures These The written notice of of notice written The IPR holders and the the and holders IPR The time limit pre limit time The March 3, 2009 3, March of Customs ------

C HINESE tIPS

打电话（一）Make A Call Ⅰ

对话 Dialogue 王经理：你好！请问大卫在么？ Manager Wang: Hello! May I speak to David? 办公室内，王经理正在拨电话，可是对方的电话一直 占线。 丽丽： 他现在不在。您哪里？ In the office, Manager Wang is dialing the telephone, but Lily: He is not here now. Who’s calling? the line is always busy. 王经理：我是浙江工厂的王新。我有急事找他，怎么能联 系到他？ 对方：喂？ Speaker A at the other end: Hello! Manager Wang: It is Wang Xin calling from Zhejiang factory. I’ve got something urgent to tell him, so how 王经理：喂！你好！请问是中美贸易公司吗？ could I find him? Manager Wang: Hello, is that China-US Trade Company? 丽丽：您可以打他的手机，号码是138-1234-5678。 对方：打错了。 Lily: You could call him and his mobile phone number is 138- Speaker A at the other end: Sorry, you dialed the wrong number. 1234-5678. 王经理：哦，对不起。 王经理：我重复一遍：138-1234-5678，对吗？ Manager Wang: Oh, I am sorry. Manager Wang: I repeat it now, 138-1234-5678. Is this right? （挂电话，重新拨） 丽丽：对。 (Wang hung off and redialed.) Lily: Yes, it is. 丽丽：中美贸易公司，您好！ 王经理: 谢谢！ Lily: Hello, China-US Trade Company. Manager Wang: Thanks.

生词 Vocabulary 短语 Phrases 对方 duìfāng N speaker A at the other end 打电话 make a call 喂 wèi Int. hello 拨电话 dial the phone number 打 dǎ V dial 回电话 answer the phone 错 cuò Adj. wrong 打手机 call one’s mobile phone 重新 chóngxīn Adv. again 挂断电话 hang off the phone 打错电话 拨 bó V dial call the wrong number 占线 the line is busy 急 jí Adj. urgent 打不通 unable to get through 手机 shǒujī N mobile phone 号码 hàomǎ N number 重复 chóngfù V repeat 小贴士 Tips: 关于打电话 Making phone calls 在中国，接到电话的人一般不主动介绍自己是谁。一般公 选择填空 务电话，接听的人会先报出本单位或本公司的名称：“这 里是……”。 Fill in the blanks with appropriate phrases. In China, the people that answer the phone usually would not speak out his/her own name, but business calls would be answered with 1. A: 喂，你好，是长安商场 (Chang’an Mall) 吗？ the name of a firm or unit, starting with“这里是……” . B: 不是，______了。 接电话的人如果想知道对方的名字和身份，会用“您是哪 2. A: 喂，请问李明在吗？ 位”或“您哪里”来礼貌的询问，一般不用“你是谁”这 样的表达方式。 B: 不在，_____了。 If the people answering the phone want to know who he/she is 3. A: 你怎么不给我打电话？ speaking to, polite expressions such as “您是哪位”or“您哪

里” “你是谁”

B: 我打了好几次，可是一直____。 could be used, instead of .

挂断电话 5 打手机

4. 王新想和大卫说件急事，可是找不到他。后来，丽丽 4

占线/打不通 3 打错（电话） 2 打错（电话） 1

告诉他可以______，并给了他电话号码。 answer Reference 参考答案

5. 丽丽拨错电话号码了，她______，重新打。

67 upply info List

terprise Reform & Development Society 2009 China Market Suppliers and “Fujian Famous Brand “by Fujian Company Name: Jinjiang Lianxing Provincial government, P.R.China. Stone Carving & Materials Co., Ltd Our products are bestsellers not only Company Name: Anhui Arts & Crafts Company Profile: Jinjiang Lianxing in many European countries and Ameri- imports & Export Co., Ltd Stone Carving & Materials Co., Ltd, with ca but in the Middle East and south East Company Profile: Business scope: more than ten years of history, is one of the Asia as well. In addition, the stone ma- Glassware, Ceramics, Aertex, Textiles largest manufacturers and exporters own- terials for the construction of Jinggang and Garments, Gifts, Special arts and ing the right of handling import and export, mountain cadre institute provided by us crafts, Daily-use items, toy, Footwear and It is also one of the granites production have been rewarded as “Hua biao Cup” Headwear, Furniture, Electrical applianc- bases in Fujian province. The company is in the first nation high quality stone ma- es, IT product, Starsports good, General equipped with skilled staff and advanced terial engineering. We have won decent Merchandise, Plastics, Hair Ornament, facilities insisting on the management of reputation owing to the excellent quality flooring. Market Orientation, Customer Satisfaction, and service. Contact Person: Zhang Hong and taking lead in passing the ISO9001 Contact Person: Aaron Lin Tel: 0086-551-2826133 (2000) Certification and getting the strictest Tel: 0086-592-5107919 Fax: 0086-551-2823345 Certificate of Compliance in this field. Fax: 0086-592-5107976 Post Code: 230061 Company owns four quarries of Post Code: 361000 Email: [email protected] G3533 (G633), G3503 (G603), LX-338 Email: [email protected] (lianxing white) and LX-801 (tiger skin Website: www.green-sino.com Company Name: Xiamen Further Stone white) etc. Also G603 and G633 are the Co., Ltd national outstanding products tested ac- Company Name: Xinyu Bamboo Indus- Company Profile: XiaMen Further cording to the Standard of JC518-93 by try Co., Ltd Stone Company is located in XiaMen City the Stone Materials Test & Inspection Company Profile: Chishui Xinyu Bam- FuJian Province-China Granite Home Center of State Building Material Indus- boo Industrial Co., Ltd is located in the his- Town. It has been build since year 1990. try Bureau. toric beauty-chishui City, Guizhou province The Import and Export business line was We have three factories, specializ- China. And take up an area of 36800 square on the center of XiaMen City. It is only ing in a variety of natural granites, such meters; we have 600 employees includ- 5km far from XiaMen GaoQi International as engineering slabs, wall & floor stones, ing 98 technical staff. We are professional Airport. In our Office have more than 15 ultra-thin granites plates, tombstones, maunfacturer of bamboo products. Mainly peoples speak difference Language, Eng- fences and other series of stone products, covers bamboo flooring, bamboo chopping lish, French, German, and Spanish to do the and one office specializing in the busi- board, bamboo furniture, bamboo door, imported and exported work. ness of export and import, named as Xi- bamboo panel, bamboo veneer, bamboo We have two own factories for stone amen Green trade Co., Ltd (www.green- handicraft, bamboo chopsticks etc. products. The older and bigger one is sino.com). We, as well, own the right for We obtained the certificate of located in HuiAn Town. It had more than importing and exporting granite blocks ISO9001:2000 quality control system in 200 workers there. It is in specialize pro- and slabs, and some other kinds of prod- October 2005 and our products have been ducing Stone carving and Tombstones, ucts. A chain of production, technology, exported to Europe, America, Japan, Like Fireplace, garden furniture, Sinks sales, and service has been formed. southeast Asia etc, over about 18 coun- and Europe style tombstones. The stone We emphasize in promoting the tries. Our management tenet is: quality materials can be Granite, Marble, Sand- modern management pattern, and ex- foremost, reputation foremost, time and stone, and Slate Onyx. tending our international and domestic service foremost, and we will do our best Another one is located in NanAn markets, Relying on the good reputation to serve our customers. town. It is for making building materials. and enlarged scale, our products sell well Contact Person: Frank Li It has more than 100 workers there. They in cities and metropolis. What’s more, Tel: 0086-023-67876228 are in specializing making the granite our products are adopted by national em- Fax: 0086-023-67725205 and marble slabs, countertops, tiles and phasis engineering. In the year of 2001, Post Code: 400020 Paving. we were in the first list of becoming one Email: [email protected] We have 20 professional technol- of the hundreds of strongest stone enter- Website: www.xinyubamboo.com ogy People, they manage and control the prises in the local area. In 2002, we were quality strictly. Let our products are fin- rewarded as “China Accredit able ex- Company Name: Quanzhou Huayan ished. More and more perfect! Let them porter of building products” by CCPIT. Stone Co., Ltd sell well in all over the world. Our com- In 2003, we won Credit Example Company Profile: Guangyan Group is pany had high prestige during the stone Certificate by the P.R.C Ministry of a professional organization who have been business line. Credit and first quality is Commerce. In 2006, we won “China engaged on stone manufacture and export our first way to put our goods stand on Famous Brand “by China Enterprise Re- for more than ten years, we are specializing the world. Favorable manage is made our form & Development Society and “Fujian in countertops, vanity tops, kitchen tops, price keep very competitive. Famous Brand “by Fujian Provincial tile, slabs, stairs, sinks, tubs, paving stones, Contact Person: Michelle government, P.R.China. tombstones, Fireplace mantels and mosaic. Tel: 0086-592-5107518 Our products are bestsellers not Our group has total seven affili- Fax: 0086-592-5107528 only in many European countries and ated branches in home and abroad. They Post Code: 361000 America but in the Middle East and are Quanzhou Huayan Stone Co., Ltd, Email: [email protected] south East Asia as well. In 2006, we won Quanzhou Guangyan Slabstone Craft Website: www.xdstone.com “China Famous Brand “by China En- Co., Ltd, Quanzhou Guangyan Hongda

68 Stone Industry Co., Ltd, Hongkong New After 50 years development, as the automatic sanitary’s technology. Guangyan Ltd, Singapore Guangyan Pte earliest state-level comprehensive engi- Our products are Automatic Faucets, Ltd, NGY Handels Gmbh in Germany neering corporation, CUC has expanded Automatic Urinal Flusher, Automatic and NGY Stones Enterprise Inc. service field into machinery industry, Toilet Flusher, Automatic Hand Dryer, Our group headquarter and our power industry, civil architecture indus- Automatic Soap Dispenser, Hair Dryer plants are located in the “Hometown of try, environment industry, urban utilities etc. Zilong Corporation has obtained Chinese Stone” - Quanzhou City, where industry, light industry, textile industry, dozens of national patents and some not only you can find all Chinese Stones, petrochemical industry, electronic in- of its single products are the first to be but also many famous stones from all dustry, military industry, building mate- recognized as water-saving products by over the world, and is about 100 kilo- rial industry, etc. International Business China mark CNAB or as green products meters far from Xiamen port who can Department (IBD) is the department by GBM. Otherwise, the products have sail to the worldwide main ports. This that deals with international business of passed ISO, FCC, CE and ROHS testing. excellent geographical location provides CUC, mainly does the job of overseas The development, produce and sale us the most convenient transport to any project marketing and import & export of 15 years experience, and spread all places in the world. Our group’s plants products used in different engineering over the after-sales service network of the are combined by Quanzhou Huayan projects. Depending on the powerful tech- whole country, provided a safe usage a Stone Co., Ltd, Fujian Quanzhou Guang- nical capacity and perfect procurement guarantee for the customer. The product yan Slabstone Craft Co., Ltd, Quanzhou network & price-information system of sells Europe, the United States, and Mid- Guangyan Hongda Stone Industry Co., CUC, the department has distinct trading dle East and Southeast Asia region etc. Ltd., which have the advanced produc- preponderance in the products correlating Contact Person: Sam Lin tion equipments and scientific manage- to engineering projects, especially in the Tel: 0086-591-83820666 ment system in manufacturing various field of electromechanical products. Fax: 0086-591-83855399 architectural stones, tombstone and Contact Person: He Yuwen Post Code: 350008 sculptures. All products are exported to Tel: 0086-571-88151991 Email: [email protected] Southeast Asia, Europe, and America Fax: 0086-571-88153199 Website: www.zilong.com.cn and Middle East countries for more than Post Code: 310022 40,000 square meters monthly. We have Email: [email protected] Company Name: Yantai Lijing Stone established our branches in Singapore, Website: www.chinacuc.com Import & Export Co., Ltd Germany, the United States, Hong Kong Company Profile: Yantai Lijing Stone and other countries or regions. Our out- Company Name: Hoyon Stone Co., Ltd Import & Export Co., Ltd is one of the lead- standing marketing networks provide our Company Profile: Hoyon Stone Co., ing producers in the field of stone products; customers around the world with quality Ltd. is located in Congwu, Huian, Fujian the company consists of mining, develop- products and convenient services. Province, which is traditionally well-known ing designing, processing of many kinds of Guangyan group has built up the as the “Hometown of Stone Carving” in limestone, sandstone, granite products. The quality management system in accor- China. And it’s also the earliest area involv- main products includes: stones and stone dance with the ISO 9001 quality man- ing in stone production and international carvings for in and out room building. The agement system standard and has been business in China. products ranging from kerbs, pavers, bol- qualified by the IMS International. We Hoyon Stone have engaged in the lards, step s to cubes etc. The finishing of will continue to provide our customers stone production and trade for more them are sawn, chiseled, flamed etc. We can our satisfactory products and considerate than ten years. We always stick to offer make sculpture for square, garden, road etc. services by advanced equipments, scien- our customers with our quality products And we also can process products accord- tific management and honest services. and excellent credit. We have two fac- ing to customer’s request, such as polishing, Contact Person: Charlie Guo tories, one is specialized in gravestone charmfering, digging holes, lettering etc. Tel: 0086-595-22652222 production, and another is specialized in We have two factories. One locates Fax: 0086-595-22653333 all kinds of structure stone and various in Yantai Shandong Province China, Post Code: 362011 sculpture products. With our abundant the other locates in Jiaxiang, Shandong Email: [email protected] experiences and skillful workers, and our Province China. We have advanced Website: www.granite-supplier.com own designers, we are able to offer you equipment in our factories. We can make all kinds of excellent stone products sta- about 100000 square meters of slabs and Company Name: China United Engi- bly and extendedly. about 20000T of kerbstone, pavers, and neering Corporation You are warmly welcomed to visit uncommon products every year. We can Company Profile: China United Engi- our company. Any of your inquiries are export about 800 containers of all kinds neering Corporation (CUC) is one of the welcome and would be deal with in a of stone products every year. Meanwhile, best engineering corporations in China; short time. We are expecting to offer you the company has yellow granite mine it has high comprehensive strength with our excellent products and services! and several different colors sandstones science and technology as the vanguard, Contact Person: Mr. Simon Lin mines, including red, yellow, green, gray, engineering service as the main busi- Tel: 0086-592-5073291 purple, purple wood, coffee, etc. ness. CUC was founded in Shanghai in Fax: 0086-592-5073290 With high quality standard and com- 1953, and now the headquarters of CUC Post Code: 362131 petitive price, its products have a ready is located in the famous scenery city- Email: [email protected] market in Europe, North America, Japan Hangzhou. CUC currently has more than Website: www.hoyonstone.com and Southeast Asia etc. 2300 employees, among which over 80% Contact Person: Bing Leng are technical personnel, including 1 mem- Company Name: Fuzhou Zilong Induc- Tel: 0086-535-6091855 ber of Chinese Academy of Engineering, tion Equipment Co., Ltd Fax: 0086-535-6084301 4 state design masters, 2 state exploration Company Profile: ZILONG is one of Post Code: 264000 masters, 95 experts enjoying special allow- the Chinese pioneers in making automatic Email: [email protected] ance of the State Council, over 900 senior sanitary. Since 1992, Zilong Corporation has Website: http://www.lijing-stone.com engineers (including 191 engineering pro- always been occupying the leading place and fessors). engaged in the research and development of (Source:www.chinamarket.com.cn)

69