CHINA’S F REIGN TRADE The Export-Import Bank of China: Want to Be the Best in A Better World ? SPECIAL REPORT 2011, First Year of China’s 12th Five Year Plan ECONOMY China’s Recent Fight Against Inflation Lau Kin Tung, CEO of Jiwa Group 国内邮发代号：80-799 国际邮发代号：SM1581 国内刊号：CN11-1020/F 国际刊号：ISSN0009-4498 Established in 1958, China National Electric Apparatus Research Institute (CEI) is affi liated to China Machinery Industry Group (SINOMACH), now has over 2,000 staff , with 70% of technicians. Its three operation bases occupy over 400, 000㎡ in area. It is one of the largest state-owned enterprises with highest authority in household appliance indus- try of China and it is the authorized institute designated by Chinese government to establish the National Standard for Household Appliance. It is one and only enterprise in China to engage in providing engineering turn-key solution for household appliance. Business scope include the overall layout design for household appliance factory, design and manufacture of automatic pro- duction equipments for household appliance, testing equipments and painting equipments, household appliance R&D as well as household appliance testing and certifi cation, design and make of various dies & moulds. So far it has undertaken hundreds of turn-key projects for household appliance plants at home and aboard. Its equipments sell well in USA, Ital- ian, Turkey, India, Vietnam, Indonesia, Pakistan, Oman etc. As its professional and highly qualifi ed personnel, advanced management system, high quality products and consummate customer service, CEI has maintained a high reputation throughout China and abroad. China National Electric Apparatus Research Institute —Equipment Engineering Turn-key Solution Provider For Household Appliance Add:16 Yufeng Road, Huadu District, Guangzhou, P.R.China Tel:020-86985899 Mobile:0086-18688892801 (Mr.Zhao) 0086-18688892810(Mr.Tree) Fax:86-20-86985656 E-mail:[email protected] http://www.kinte.com.cn WHAT’S ON? China auto shares calm on end of tax incentive hina’s auto stocks, which were bruised recently by Bei- jing’s policy to limit new car registrations in the capital, were largely calm on Dec. 29, 2010, shrugging off gov- ernment confirmation of an end to tax incentives for Csmall cars. Top automaker SAIC Motor Corp. Ltd. was fl at on Wednesday morning in Shanghai after opening slightly down, while Shenzhen- listed rivals Chongqing Changan Automobile Co., Ltd. edged up 0.42 percent and smaller Tianjin FAW Xiali Automobile Co., Ltd. Govt to invest $15b in farmland was down 1.22 percent, against a 0.2 percent rise by the benchmark Shanghai Composite Index . The government plans to invest more than 100 “The market has already priced in the news that the tax incen- billion yuan ($15 billion) over the next fi ve years to tives will be scrapped,” said Yuanta Research auto analyst Johnny ensure enough farmland to guarantee China’s food Wong. security, the Ministry of Land and Resources said China has ended tax incentives on purchases of cars with 1.6 recently. litre engines or smaller on Jan. 1, 2011 — a long-anticipated step that The investment will improve about 4 million will apply the brakes to runaway expansion of the world’s largest hectares of land and replenish an additional 670,000 auto market. hectares of arable land in major grain producing areas. In Hong Kong, China’s No.2 automaker Dongfeng Motor Group These are Hebei, Jilin, Heilongjiang, Jiangsu, Anhui, Co,. Ltd. gained 0.5 percent and Brilliance China Automotive Hold- Jiangxi, Shandong and Hubei provinces, and the Inner ings Ltd., sole distributor of Bayerische Motoren Werke AG cars in Mongolia and Guangxi Zhuang autonomous regions. China, rose 1.65 percent. The plan will add 10 million tons to China’s Dongfeng and Brilliance plunged 9 percent and 7.5 percent, re- annual grain capacity, the ministry, which super- spectively on Dec.24, 2010 after Beijing unveiled measures, includ- vises land use, said. ing limiting the quota for new small passenger vehicles to 20,000 “We need to protect the arable land base for per month in 2011 to ease the city’s chronic traffi c jams and cut pol- grain security while also providing land for eco- lution. nomic development,” Minister of Land and Re- “Some funds have been cleaning their books before year- sources Xu Shaoshi said. end and switching to other high-growth sectors such as consumer “It’s a dilemma. To solve the problem, we need goods,” Wong said. to use land more economically, reduce farmland Analysts turned more cautious and forecast vehicle sales in seizures for industrial and residential use, and try China, the world’s largest auto market, to grow 10-15 percent next all means available to increase our country’s arable year. land area.” “People are more concerned about whether profi t margins will China began improving its farmland’s per- be squeezed if sales growth slows,” he added. (Reuters) unit grain production capacity by upgrading the FIGURES 5.1% to exceed $2.9 trillion this year, and the country expects its trade and internation- China’s consumer price index (CPI), al payments to be more balanced over the a major gauge of infl ation, rose to a 28- next five years, Minister of Commerce month high of 5.1 percent in November, Chen Deming said on Dec.16, 2010. 2010, the National Bureau of Statistics (Xinhua) (NBS) said on Dec.11. (Xinhua) $100b, $50b $2.9 trillion China’s actual use of foreign direct China’s foreign trade is expected investment (FDI) is expected to rise 11 2 QUOTES ecological environment for cultivation beginning in 2008. The move was made to alleviate food security concerns over China’s inflation ‘reversible’ but ‘warning signal’ shrinking arable land amid the coun- Merrill Lynch economist said on Dec. 14, 2010 that China’s infl ation is re- try’s rapid economic growth and urban- versible but clearly sending a warning signal to avoiding over-heating risk. ization. “Most infl ation so far we see in China is food, which is reversible The government has improved 4 to get better crops next season,” Ethan Harris, head of the Developed million hectares of farmland and turned AEconomics Research in Bank of America Merrill Lynch Global Research, told a press another 1.33 million hectares of reserve conference. land into arable farmland, boosting its “However, it was clearly a warning signal here that we need ongoing tighten- cultivated land productivity by about 10 ing policy even as the Fed and ECB (European Central Bank) sit here on hold,” he to 20 percent, the ministry said. added. (Xinhua) China’s grain output rose 2.9 per- cent year-on-year in 2010 to 546.41 million tons, marking the seventh con- “China’s portion of world growth in 2010 possibly secutive year of growth, preliminary 20%” fi gures released by the National Bureau Ba Shusong, noted Chinese economist and senior researcher at the Develop- of Statistics earlier this month said. ment Research Center of the State Council, told People’s Daily that a preliminary The country’s grain production area estimate has set world economic growth for 2010 at more that 4.5 percent with 60 also expanded 0.8 percent from a year percent of that coming from the emerging markets. China is expected to contribute earlier to 109.87 million hectares, the 20 percent, while the G3, namely the United States, the European Union and Japan, bureau said. will generate 25 percent. (People’s Daily) Food security remains a major gov- ernment concern as the country’s arable land continues to shrink amid rapid eco- “China to promote auto imports in next five years” nomic growth and urbanization while China will actively promote auto imports over the next fi ve years to help the its population keeps expanding. country restructure and upgrade its auto industry, a Chinese offi cial from the Minis- Provincial governments have been try of Commerce (MOC) said on Dec. 26, 2010. urged to conserve 120 million hectares Qian Jingfen, an offi cial in charge of imports at the MOC’s Industrial Depart- of arable land nationwide by 2020, be- ment, told an auto imports forum in Beijing that the auto import-promotion strate- cause farmland shrinkage is threatening gy will be implemented during the 12th Five-year Plan period (2011-2015) through grain production. corresponding fi nancial, taxation and trade policies. “Our country must hold tightly to Qian said China will encourage the imports of advanced auto equipment, the bottom line of 120 million hectares key technologies and components of energy-saving and new-energy vehicles in the of arable land,” Xu said. “This is the life- period. (Xinhua) line of food security for our 1.3 billion people.” (China Daily) FIGURES percent to some $100 billion in 2010 and totaled $216.6 billion in the 2006-2010 0.5 percentage points from October, the China’s outbound investments on the in- period, exceeding the government’s tar- China Federation of Logistics and Pur- ternational market are expected to exceed get 3.6 times, the Minister of Commerce chasing said on Dec.1, 2010. (Xinhua) $50 billion in 2010, said Chen Deming, (MOC) Chen Deming said on Dec.25, China’s minister of Commerce, on Dec.22, 2010. (Xinhua) 13.3% 2010. (People’s Daily Online) 55.2% China’s industrial value-added out- $216.6b put year on year growth quickened to 13.3 The Purchasing Managers Index percent in November from 13.1 percent in China’s outbound overseas direct in- (PMI) of China’s manufacturing sector October, the National Bureau of Statistics vestment (ODI) to non-fi nancial sectors rose to 55.2 percent in November, 2010, up (NBS) said on Dec.