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

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邮发代号：80-799国内刊号：CN11-1020/F国际刊号：ISSN0009-4498

Electronic Information Industry: Calls for Upgrade and Reform

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I. The introduction of Changhe MotorsEstablished 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 productsBy 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,

Jiangxi Changhe Motors Co.,Ltd.

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Jiangxi Changhe Automobile Co., Ltd.Add: No.208 Xinchangdong Road, Jing- dezhen, Jiangxi 333002, P.R.ChinaContact Person: Zhou ZhenguangTel: 86-798-8462884Fax: 86-798-8462987E-mail: dqzou555@gmail.comWeb Site: www.changheauto.com

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”.

LifestyleFestival Croisements 2009 Théâtre ~ Fey-deau

Beijing, Renyi Shiyan Xiao Juchang, May 20, 21, 22, 23 and 24Hangzhou, Grand Theatre, Multimedia room, June 3Shanghai, Duanjun Theatre, June 6 and 7The 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.

Shao Sifan is a young actor and director who graduated from the cours Florent and was awarded the best directing prize at the end of his studies for his directing work of “John & Mary” by Pascal Rambert. He regularly attends training workshops and has been a guest of Thomas Ostermeier’s workshop at the Beijing Uni-versity Theatre Research Institute (directed by Lin Zhao Hua) and the Commedia Dell’ arte training course directed by Luis Jaime-Cortez.

Texts: Georges FeydeauAdaptation and directing: Shao Sifan, assisted by Fabien de

ChalvronScenography: Shao Sifan, Ggislaine QuerrienWith: Fabien de Chalvron, Martin Douaire, Floriane Facchini,

Aude Ollier, Shao Sifan, Hang Yin. The performance lasts 1h35.

HOUSE NATION “Sparkling Night”Artists: Kaskade(ultra records), yummy(house nation tokyo)Time: June 5, 21:00Price: In Advance RMB 80Add: The Star Live, 3 Floor, No.79, Hepingli Xijie,

Dongcheng District, BeijingTel: 86-10-64255677

Puccini’s Opera: Madama ButterflyTime: June 4-June 7, 2009 Venue: NCPA-Opera House

Price: RMB 280/480/680/880/1080/1380Tickets are available at 86-10-64177845A Cooperative Production of Teatro La Fenice and NCPAAmong 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.

New Traditional Cross Talk Music Perfor-mance-Bragging About Home

Artists: Nan Cheng Er Ge Time: June 10, 20:30Price: On door 60rmb, In Advance 50rmb, VIP 120rmb,

Family Pack 130 rmb (3 tickets)Add: The Star Live, 3Floor, No.79, Hepingli Xijie,

Dongcheng District, BeijingTel: 86-10-64255677

Ghostface Killah China Tour at Beijing Concert

Artists: Ghostface KillahTime: June 13, 21:00Price: On door 250rmb, In Advance

180rmbAdd: The Star Live, 3 Floor, No.79,

Hepingli Xijie, Dongcheng District, BeijingTel: 86-10-64255677

German Music Night - Berlin StationArtists: Doro, Fotos, Torpedo Boyz, 1983, Wang XiaokunTime: June 14, 21:00Price: Sign up and get a free ticket. Starting on May 20th on

on stage

LifestyLewww.goethe.de/peking

Add: The Star Live, 3Floor, No.79, Hepingli Xijie, Dongcheng District, Beijing

Tel: 86-10-64255677

French Theatre Encounters - The Execution of the Monstrous Judge

Time: June 9-June 11, 2009Venue: TNT TheatrePrice: RMB 50/80/120/180Ticket Package: RMB 130/170/230Tickets are available at 86-10-64177845A creation by the young French theatre director, Sarah Op-

penheim, which fuses together for the first time popular Chinese shadow puppet theatry with the more elitist Peking opera.

Listen To Me, Please!-Melo-drama

Artists: Shakespeare’s Wild Sisters Group

Time: June 18, 19:30Price: On door 120rmb, In Advance

110rmb, VIP 220rmb (limited 80 tickets)Add: The Star Live, 3Floor, No.79, Hep-

ingli Xijie, Dongcheng District, BeijingTel: 86-10-64255677

Listen To Me, Please! - MelodramaArtists:Shakespeare’s Wild Sisters GroupTime: June 19, 19:30Price: On door 120rmb, In Advance 110rmb, VIP 220rmb

(limited 80 tickets)Add: The Star Live, 3Floor, No.79, Hepingli Xijie,

Dongcheng District, BeijingTel: 86-10-64255677

Dmitry Rachmanov Piano RecitalTime: June 19, 2009Venue: Beijing Concert Hall Price: RMB 30/50/80/120/180/280Tickets are available at 86-10-64177845Pianist 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 Center and New York’s Carnegie Hall. Hailed as an “indisputable musician” by the Brussels’ Le Soir and “suave and gifted pianist” by the New York Times, his insightful musicianship have led him to explore large plateaus of repertoire such as the Beethoven, Schubert or Scriabin sonatas cycles, as well as presenting recital series on original fortepianos. A proponent of the Russian reper-toire, Rachmanov’s all-Tchaikovsky, Rachmaninoff and Scriabin albums for Vista Vera and Master Musician's labels, along with 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 focus” he brought to each work, and he gave the US premiere of Boris Pasternak’s Piano Sonata, broadcast nationwide by the NPR.

Rachmanov’s festivals include Banff in Canada, Prussia Cove in England, Moulin d’Andé in France, Spoleto, Bard and the IKIF in the USA. His honors include the George Schick

Award for Outstanding Mu-sicianship, a Fellowship from the American Pianists As-sociation, the ArtsLink grant, and the first prize at the Frinna Awerbuch International Piano Competition.

Dr. Rachmanov began his studies at Moscow’s Gnesins School of Music, earning his BM and MM degrees from The Juilliard School and the DMA from Manhattan School of Music. His teachers include Nadia Reisenberg, Arkady Aronov and Alexander Eydel-man. A sought-after educator 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 been a chair of the piano department at California State University at Northridge.

Program (subject to change)Beethoven 6 pieces of Variations in F MajorStravinsky SonataSchubert ‘Wanderer’ Fantasy D.760

Listen To Me, Please! - MelodramaArtists: Shakespeare’s Wild Sisters GroupTime: June 20, 14:30Price: On door 120rmb, In Advance 110rmb, VIP 220rmb

(limited 80 tickets)Add: The Star Live, 3Floor, No.79, Hepingli Xijie,

Dongcheng District, BeijingTel: 86-10-64255677

Listen To Me, Please! - MelodramaArtists: Shakespeare’s Wild Sisters GroupTime: June 20, 19:30Price: On door 120r mb, In Advance 110r mb, VIP

220rmb(limited 80 tickets)Add: The Star Live, 3Floor, No.79, Hepingli Xijie,

Dongcheng District, BeijingTel: 86-10-64255677

Wang Zheng - June? Times Concert

Artists: Wang ZhengTime: June 21, 20:00Price: On door 100rmb, In Advance

80rmb, Students 80rmbAdd: The Star Live, 3Floor, No.79, Hep-

ingli Xijie, Dongcheng District, BeijingTel: 86-10-64255677

Crossroads Festival French Touch ~ Yann Tiersen

Beijing/Yugongyishan/June 19 and 20, 2009Wuhan/Yuehu/June 21, 2009Shanghai/Shanghai Concert Hall/June 23, 2009Acclaimed on his first visit to China in 2006, the multi-

Lifestyleinstrumentalist yann tiersen is back for a national tour

Yann Tiersen received a classical training from an early age at the musical academies of Rennes and Nantes. He studied the violin, the piano and the art of directing. He gradually moved towards rock and began performing on local stages and recording background music for a number of plays and short films. In 1995, he released his first album “La Valse des mon-stres” a mixture of both short films scores and accompani-ments for plays. At the “Trans-musicales” in Rennes, in 1998,

he showed his multi-instrumental skills, switching seamlessly between piano, accordion, percussions and violin. His avant-garde music cutting across musical genres with gay abandon. He rose to fame with his album “le Phare” (the Lighthouse) released the same year.

His next title “le Rue des cascades” was chosen by Eric Zonca for the end credits music of his film “la Vie rêvée des anges”. He hit the international stage in 1999 and performed in Barcelona, Japan and Singapour. A year later, in London,he went on the stage for the first part of Juliet Greco’s concert. His album “L’absente” (music and lyrics) is a singular jewel with rather in-novative tonalities which features vocals from Dominique A, Neil Hannon, Lisa Germano and Natacha Régnier.

At the same time, his soundtrack to jean-Pierre Jeunet’s film “ Amelie” garnered him new fans and much acclaim. The success of both film and soundtrack put him at the top of the charts for weeks, selling 700 000 albums.

After an extensive tour he recorded the original soundtrack of Wolfgang Becker’s “Good bye Lenin” and released a CD with Shannon Wright.

His latest album “Les Retrouvailles” features a number of High-profile guests vocalists both French and Anglophone alike: jane Birkin, Dominique A , Miossec, Elizabeth Fraser,(from the Cocteau twins) and Stuart Ashton Staples of Tindersticks.

“Tabarly” is the original soundtrack album of the documen-tary film of the same name by Pierre Marcel (2008) commemo-rating the 10th anniversary of Eric Tabarly’s death.

Verdi’s Opera: RigolettoTime: June 18-June 21, 2009

Venue: NCPA-Opera HousePrice: RMB 280/480/680

/880/1080/1380 Tickets are available at 86-

10-64177845A Cooperative Production of

Parma Royal Opera House and NCPA

Rigoletto, created in 1851, is one of Italian opera master Verdi’s classics and, together with La Traviata and Trovatore, is called Verdi’s three classics in his middle life of creation and has been famous for over one century. Verdi strengthens the

dramatic part of the play and with skillful musical techniques depicts deeply the rich mental changes and characterstics of the

characters of the play. The opera created three different musical images, that is, the irresolute and mentally changeable jester, the refined but frivolous, affectionate but easily changeable duke and the innocent, affectionate and poetically imaginative Gilda. Many selections of this opera have become world famous, of which La donna e mobile (Women are fickle), with its relaxed and lively rhythm and gorgeous tones, becomes a world popular classic song. Parma Royal Opera House

Parma Royal Opera House was established in 1829, which was the most important legacy of Duchess Maria Lulchia and also the best representation of the blend of society and culture of that period. As the Italian opera master Verdi’s hometown, the Opera House is tightly connected with Verdi’s whole life as well as his classic works. It holds Verdi Festival every autumn and is called the Holy Land in the heart of Verdi fans. Parma Royal Opera House has a long history an dpossesses a profound performing tradition, all of which makes it become Italy’s cul-tural hub. Synopsis:

It is a story that happens in the 16th century in Italy’s Matua. The protagonist Rigoletto, ugly and hunchbacked, is a jester in the palace of the Duke of Mantua. The Duke, young and hand-some, only takes pleasure from flirting with women, which evokes the courtiers’ discontentment. However, Rigoletto only mocks at the courtiers’ wives and daughters’ misfortune and offends many people and finally gets the misfortune of losing his daughter. His daughter Gilda is innocent and beautiful. The Duke disguises himself as a poor student and secretly chases her and at last gets her love. Later, Rigoletto lures the Duke to sleep in the hotel with a beauty and hires an assassin to kill him. At dawn, he finds that it is the dying Gilda who has disguised herself as the Duke. In fact, the young girl, who loves the Duke though he does not really love her, knew the assassin plan and his willing to die for the Duke because of love.

Drama: Don JuanTime: June 14-June 23, 2009Venue: TNT Theatre Price: RMB 50/80/120/180Ticket Package: RMB 130/170/230Tickets are available at 86-10-64177845Dom Juan (Dom Juan ou le Festin de pierre) is a French play

by Molière, based on the legend of Don Juan. Molière’s char-acters Dom Juan and Sganarelle are the French counterpart to the Spanish Don Juan and Sancho. This play is the last part in Molière’s hypocrisy trilogy, which also includes The School for Wives and Tartuffe. It was first performed on February 15, 1665, in the Palais-Royal, with Molière playing the role of Sganarelle.

The Integration of Ear-ly Summer Concert

A r t i s t s : M a n d a l a , R u i Band,Red Zebra Another Mys-tery Guests

Time: 20:30, June 24, Price: On door 100rmb, In

Advance 80rmb, VIP 120rmb (limited)

Add: The Star Live, 3Floor, No.79, Hepingli Xijie, Dongcheng District, Beijing

Tel: 86-10-64255677

LifestyLe

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.

The 16th Asian Games Unveils 2010 Pictograms

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.

2009 No.11/456

BI-WEEKly WATCH

8 Figure 9 Agriculture10 Energy 11 Chemical12 Steel 13 Auto 14 Light Industry 15 Textile 16 Electronics 17 Transportation 18 Science 19 Health20 Finance 21 Investment

SpECIAl rEporT

24 Electronic Information Industry: Calls for Upgrade and Reform 25 Encounters & Responses Trade Protectionism27 An Overview of the Electronic Information Industry in 200828 Countryside, Rocky Road for Home Appliances

CITy

30 Huangshan, the Magical Mountain

EConomy

34 China’s Export, Still Tough Road Ahead35 IMF: More Funding, More Reforming

InVESTmEnT InFo

38 Investment Projects in Western CHINA

rESEArCH

40 Then And Now42 Strong Renminbi Policy & the Coming of Age of China’s Outward FDI

FAIrS & ExpoS

48 China Fairs & Expos

World Expo

52 Haibao to “Tour” the World

CCpIT

53 The Chinese Products Promotion Week (Europe), also the 2nd China-EU Cooperation Forum on Economy and Trade held in Hague

Mt. Huangshan is a magical mountain, it’s like a perfect unfolded Chinese landscape painting.

Lowering the cost has been a major competition method in the development of China’s electronic information industry. However, this development mode has been not as smart as before in recent two years. Long term development of China’s industry should turn to technology innovation and opening of domestic demand.

Outbound investment is also a part of international trade. Zhang identified three main factors that will make the foreign investment environment tougher for Chinese enterprises: declining demand and price, shrinking international assets, and a lack of confidence.

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ExCHAngE

54 CHITEC, Innovation Changes the World57 Chengdu, The Next Destination for International Conferences

guIdE

59 Guide to Application,Transaction and Administration for Duty Reduction or Exemption60 Guangzhou Cuxtoms Guide to Clearance of Import/ Export Goods

TrAVElog

62 Shaanxi Impressions

rulE

64 Measures of the General Administration of Customs of the People’s Republic of China for Implementing the Regulations of the People’s Republic of China on Customs Protection of Intellectual Property Rights (Part II)

CHInESE TIpS

67 Make A Call I

Supply InFo

68 2009 China Market Suppliers List

8

China’s urban fixed-asset investment in the first four months rose 30.5 percent year on year to RMB 3.71 tril-lion (US$543.2 billion), the National Bureau of Statistics announced on May 12.

The growth rate was 1.9 percentage points higher than in the first quarter. The growth rate in the primary sector (farming, fishing, forestry and the like) remained the highest, up by 82.1 percent to RMB 58.3 billion in the first four months. The secondary sector saw investment rise by 27.8 percent to RMB 1.6 trillion and the tertiary sector by 31.6 percent to RMB 2.05 trillion.

Investment in real estate rose 4.9 percent to RMB 729 billion. The growth rate was 0.8 percentage points higher than the first quarter, the NBS said. From January to April, China carried out 86,420 new projects, up 45 percent from a year earlier, with total investment surging 90.7 percent to RMB 3.68 trillion.

The surge in fixed-asset investment was driven by the 4-trillion-yuan stimulus package and expanding bank credit, analysts said. New credit extended in the first quar-ter stood at a record RMB 4.58 trillion, but new lending cooled in April to RMB 591.8 billion.

Central government project investment rose 29.3 percent to RMB 346.6 billion from January to April, with similar investment by local governments up 30.6 percent to RMB 3.36 trillion. (NBS)

CPI: 1.5%↓ in April China’s consumer price index (CPI), the main gauge of inflation,

fell 1.5 percent year on year in April, the National Bureau of Statistics (NBS) said on May 11.

It was the third decline in a row since February, when the CPI dropped 1.6 percent, which in turn was the first fall since October 2002. The result was in line with market expectations and analyst forecasts.

Food prices, which comprise one-third of the CPI, dropped 1.3 percent, dragged down by a 28.6-percent decline in pork prices as de-mand plummeted amid a global flu outbreak thought to be connected with pigs. Non-food prices fell 1.5 percent.

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.

Lian Ping, chief economist with the Bank of Communications, said the weakening reflected the high base of comparison, since the 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.

The country pumped RMB 4.58 trillion (US$670 billion) of new loans into the economy in the first quarter to stimulate growth. Lend-ing in the early months of 2009 has already neared the RMB 5 trillion of new loans targeted for the whole year. In March alone, new loans increased by a record RMB 1.89 trillion.

The People’s Bank of China (PBOC, the central bank) said in its quarterly monetary policy report on May 5 that China would stick to its moderately easy monetary policy and ensure “ample” liquidity at banks.

The State Information Center, a government think tank, predict-ed in a report released on May 4 that the CPI would drop 1.3 percent in the second quarter. One hundred economists polled by the China Economic Monitoring & Analysis Center under the NBS at the end of March expected the figure for the whole year would range between 0 to 0.2 percent.

Deflation was unlikely, the survey found, considering the ample bank liquidity and the moderating inflation comparison base in the latter half of 2008. Premier Wen Jiabao told the annual national legis-lative meeting in the early March that the inflation target for this year would be about 4 percent.

Xu Lianzhong, official with the National Development and Re-form Commission, the top planning agency, said that the CPI would likely bottom out in the second quarter, so the possibility of further interest rate cuts could not be ruled out. (NBS)

PPI: 6.6% ↓ in April China’s producer price index (PPI), a major measure

of inflation at the wholesale level, fell 6.6 percent in April year on year, the National Bureau of Statistics (NBS) an-nounced on May 11.

The decline compared with a 6.0-percent drop in March and 4.6-percent fall in the first quarter from the same period last year. Prices of production materials fell 8.1 percent in April year on year, the NBS said in a statement.

The PPI for January-April fell 5.1 percent over the same period last year, it said. The NBS also announced the consumer price index for April was down 1.5 percent year on year and 0.2 percent month on month. (NBS)

Urban fixed-asset investment: 30.5% ↑ in first 4 months

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Warning that the global food crisis is far from over, UN Secretary-General Ban Ki-moon on May 13 urged Member States to agree on a set of decisions that will revi-talize agriculture, support small farmers and promote food security for all.

“The food crisis is not yet behind us. Indeed, it may have widened its scope,” Ban told the opening of the 17th session of the UN Commission on Sustainable Development at the UN Headquarters in New York. The two-week ses-sion of the Commission, which began last week, is expected to culminate in policy decisions in areas such as agriculture, rural development, land, drought, desertification and Africa.

Ban said that high food prices mean 100 million people in low-income countries are at risk of joining the ranks of the malnourished. As a result, the World Food Program (WFP) will need to increase its budget from US$500 mil-lion to US$750 million to maintain its operations.

At the same time, he noted that there is broad-based international support for addressing this issue. In particular, he was pleased with the Commission’s initiative to convene a ministerial roundtable on a sustainable green revolution for Africa.

“Investing in an African green revolution will serve not just food security but progress across all the Millennium Development Goals (MDGs), including environmental sus-tainability,” he said, referring to the set of anti-poverty tar-gets global leaders have pledged to try to achieve by 2015, known as the MDGs.

“To achieve a Green Revolution, African farmers, must have access to land and security of tenure. They also need access to markets, technology and improved infrastructure,” he stated, adding that this includes women farmers.

In the midst of a global recession, things can deterio-rate “frighteningly fast,” the secretary-general said, adding “it is but a short step from hunger to starvation, from dis-ease to death.”

The international community, he said, must offer short-term emergency measures to meet critical needs. But it must also make longer-term investments to promote food production and agricultural development, enhance food se-curity and maintain and accelerate momentum towards the MDGs.

“The decisions taken here must help to revitalize agri-culture and support the productivity and resilience of small farmers, in particular, to achieve food security for all,” the secretary-general added. (Xinhua)

For the second time in three years, China’s pig farmers are strug-gling to make ends meet.

The country has an overabun-dance of pigs. Combine that with fear over the A/H1N1 flu, formerly commonly referred to as “swine flu,” and farmers find themselves unable to make a profit when they go to market.

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 Lan, whose 1-hectare barn in Shanxi Province produces more than 2,000 pigs a year.

The National Development and Reform Commission (NDRC) is-sued a warning on May 15 that the sector began to lose money as the average rate between the prices of pigs and feed in 36 big cities was 0.1 point lower than the break-even point as of May 6.

Deputy director of the NDRC pricing department Zhou Wangjun also pointed out supply had surpassed demand and the gap could widen as consumption of pork usually dropped in summer. The government would decide whether to start buy large quantities of pork based on market conditions in an effort to stabilize prices, said Zhou.

He said he was uncertain about the planned program’s effect in stop-ping the price from falling. Following the warning, Lan decided to cut production by 1,500 head this year, equal to about RMB 15,000 in total.

“I lost RMB 260,000 in 2006 when the prices plunged drastically due to enormous supply, but sluggish demand. I just don’t want it to happen again,” said Lan, who began to raise pigs in 1994.

“The flu, which has no connection to pigs other than containing swine flu genetic sequences, was another disaster for us. People stopped buying, driving the price down further.”

In Jinzhong City, Lan’s hometown, pigs sold at about RMB 9.6 per kg before the second half of last month, when the flu broke out. The price dived to RMB 6.2 per kg during the May Day holiday.

The fortunes of China’s hog industry have fluctuated drastically since 2006. The serious price fall prompted the central government to launch stimulus policies in 2007, which prompted enthusiastic invest-ment in the sector. Production greatly expanded in the following two years, slashing prices in the second half of last year as the consumption grew weakly.

Under the stimulus policy, Lan received a subsidy of RMB 48 per year per pig breeding sow and every pig in his barn was insured for RMB 1,000. However, Pan Yun, vice president of the Academy of Social Sciences of Shanxi, said the policy focused on the temporary market situation rather than the industry’s long-term development.

The policy had been in effect for three years, much longer than necessary. It had become a channel for farmers to get money, but its original purpose of regulating the market was not well realized, Pan said. “The stimulus measures actually sharpened market fluctuation,” Pan said.

The government should work out a long-term plan based on the sector’s development, covering industrial goals, competitive capacity, production and processing chains, backup policies, and an early warn-ing mechanism covering market demand, price movement and break-even point, Pan said.

Priorities should be given to large pig farms that could withstand risks and were more adaptable to market changes than small farms, Pan added. The Kunxing Farm in Jiangsu Province employs more than 100 pig raisers, producing about 30,000 pigs every year. Cost advantages and the brand reputation allowed the farm to earn RMB 0.7 per kg more than independent producers even during this hard time, said owner Du Xiaokun. (Xinhua)

China’s State Council on May 11 published a guideline to maintain current agricultural development and promote income for farmers. It consists of 22 items in eight parts, calling for more efforts to expand domestic demand, pro-mote exports and stabilize grains’ prices.

The guideline calls for more support for spring sowing, including pest control, guarding against natural disasters and science and technology services. It also stresses the im-portance of granting subsidies to farmers and setting grain prices. (Xinhua)

Pig producers struggling amid price diving

China issues guideline on maintaining agricultural growth

UN chief urges steps to revitalize agriculture, ensure food

security for all

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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)

Report: China’s power use falls 3.63% in April

China, world’s 4th in wind power capacity

With total installed capacity of 12 million kilowatts, China has become the world’s fourth country in terms of wind power-installed capacity, an official said on May 23 in Beijing.

“Concerning wind power-installed capacity, China is next only to the United States, France and Spain,” Lu Yanchang, vice chairman of the China Science and Technology Association, made the above remarks at the fifth China Energy Strategy Forum.

Wind power has become a main force in China’s new energy development cause, said Lu, adding that the country had built more than 200 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 capacity. The country will build more wind power projects before 2010, in east coastal areas, and vast western regions, according to Lu.

North Inner Mongolia and Hebei have ex-ploited wind energy earlier than other regions on the Chinese mainland.

Inner Mongolia, covering 1.18 million square kilometers, boasts 100 million kilowatts of wind energy resources, with enormous white turbines standing high to capture the strong winds from the heartland of Mongolia and Siberia.

The region is striving to increase installed ca-pacity of wind power to more than 10 million kilo-watts in 2010, almost half of that of the country’s largest hydropower project at the Three Gorges, said Ya Saning, director of the region’s economic commission.

Hebei Province will also construct wind pow-er plants with an installed capacity of more than 10 million kilowatts as of 2020, said Zhao Weidong, an official with the provincial Commission of De-velopment and Reform. (Xinhua)

First landfill gas power generation project completed in Hainan

Approved by the National CDM Board, the National Development and Reform Commission recently agreed the landfill gas power generation project in Yanchunling, Haikou City could be built into a Clean Development Mecha-nism (CDM) project, and sell its greenhouse gas emissions, namely no more than 450,000 tons of carbon dioxide equivalent, at a price of no less than 11 euros/ton to the UK-listed EcoSecurities, Hainan News reports.

It’s understood that it is the first large-scale project to generate power from landfill gas in Hainan Province, and also the first CDM project in Hai-kou City.

Yanchunling landfill gas power generation project, when built into a CDM project, is expected to reduce carbon dioxide emissions equivalent by 41,100 tons per year on average from 2009 to 2012, said an official from Hain-an Provincial Development and Reform Commission. (China Energy Net)

China’s nuclear power capacity is expected to reach about 5 percent of the country’s total power capacity by 2020, according to National Energy Administra-tion (NEA) on June 1 at a press conference.

The target is higher than the original one set in 2007, which aimed for a nuclear power capacity of 40 million kw by 2020, taking up 4 percent of the total power capacity.

NEA deputy head Sun Qin said that with a power capacity of 800 million kw at present and an estimated 1.4 billion kw to 1.5 billion kw by 2020, it is time to adjust the goal to match China's fast energy development.

Sun said no final plan has been created yet to meet the goal as it needs more work before it is reported to the State Council.

The country would raise not only the quantity but also the quality of its nuclear power generation in revised mid-and-long term plan on nuclear power de-velopment, according to the NEA.

“We expected to realize self-design, self-construction and self-management of our nuclear power facilities by 2020,” Sun said.

At present, China’s nuclear power takes up 2 percent of the total power gen-eration, while coal-fired power covers more than 80 percent of the total. About 15 percent of the world’s power generation comes from nuclear energy. (Xinhua)

China to speed up nuclear power development

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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)

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, 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)

Petrochina secures spc stake

Sino-Russia oil pipeline serves strategic goals of both sides

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Chinese steelmakers should demand a bigger cut in iron ore prices than agreed by Japanese rivals because there is an oversupply of the raw material, the chairman of China’s fifth-biggest steel producer said.

“There are huge stockpiles at Chinese ports,” Shen Wenrong, the chair-man of Jiangsu Shagang Group Co. said May 27 in an interview. “We shouldn’t accept the Japanese steelmakers’ accord with Rio Tinto Group for a 33 percent cut,” he said. China’s steel association is discussing “counter measures” to re-spond to the agreement between Rio Tinto and Nippon Steel Corp. that set iron ore prices at the second- highest annual price on record, Shen said. Chinese mills, the world's biggest producers, have previously called for prices to be as much as halved and are yet to agree an accord.

Chinese producers “can choose” to buy more iron ore on the spot market should contract agreements with producers not be reached, Luo Bingsheng, vice chairman of the China Iron and Steel Association, said on May 22. “We are already buying some from the spot market,” said Shen, who’s Jiangsu Shagang is also China’s biggest closely held steel mill. ” The 33 percent cut is too far from our demand of 40 percent to 45 percent.” Almost 40 percent of China’s 72 biggest steel mills had losses last month, the Ministry of Industry and Information Technology said May 22. The steelmakers had a combined loss of 5.2 billion yuan in the first four months, it said. Chinese steelmak-ers are likely to follow their Japanese rivals in agreeing to the 33 percent cut, Goldman Sachs JBWere Pty analysts led by is Melbourne-based Malcolm Southwood said May 26. (Bloomberg)

The Shanxi Coal-Steel Energy Development Company began operation recently in this capital city of north China’s Shanxi Province, a senior official with the Shanxi Coking Coal Group confirmed May 30. The move is believed to be a significant measure for the province, which is located on China’s major coal belt, to cope with the global economic downturn through deepening cooperation between coal and steel industries.

According to Bai Peizhong, chairman of the Shanxi Coking Coal Group, the new company has a registered capital of RMB 500 million (US$ 73.3 million), with the coking coal supplier taking 60 percent of the stake and Taigang Group hold-ing the remaining 40 percent. The new energy company will engage in coal mining, dressing and marketing. It will ensure coal supplies for Taigang Group and share profits from coal mining with the steel maker, Bai said.

As China’s largest coking firm, the Shanxi Coking Coal Group turns out 10 percent of the country’s total product and supplies more than 20 percent of such materials needed by 18 big steel makers nationwide. Taigang Group is a world leading stainless steel manufacturer in terms of production capacity and technologies. Industry observers said the establishment of the new company would be conducive to sharpening competitive edge of both coal and steel produc-ers. (Xinhua)

Leading coal producer teams up with major

steel maker to sharpen competitive edge

Major steel producers report losses

in first 4 monthsTwenty-

nine large and medium-sized Chinese steel producers re-por ted RMB 5.18 b i l l ion ( US$762 .46 million) in ag-

gregate losses in the first four months, the China Iron and Steel Association (CISA) said here May 22. The 29 producers were among 72 surveyed by CISA, the association’s vice chairman, Luo Bingsheng, said.

The 72 companies reported RMB 575.59 bil-lion in revenue, down 18.9 percent year on year, Luo said. They paid RMB 15.42 billion in taxes, down 85.07 percent year on year, Luo said. Losses were mainly caused by slumping domestic steel prices, Luo said. Many producers have cut costs, and the production cost of steel dropped 13.75 percent in the first quarter, Luo said. (Xinhua)

China considers setting iron ore price index China will unveil its first iron ore trade platform Rizhao International

Iron Ore Trade Center on May 25 in Shandong Province, which signals that the 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 trade center, told Xinhua May 22.

Jointly invested in by five local private companies pursuing bulk com-modity transaction in Shandong Province, the center mainly provides elec-tronic commerce services for iron ore suppliers and stee lmakers. Its registered capital totals RMB 20 million (US$ 2.93 million). The trade center offers ser-vices including electronic transaction, information exchange, quality inspec-tion, storage, transportation, insurance, and settlement for the two parties in iron ore trading, according to Wang Lei, head of the preparation team for this program.

“As the biggest iron ore importer, China has not set an iron ore price in-dex to date. The iron ore trade center will promote orderly iron ore imports and standardize activities of trading parties, and gradually facilitate China to launch its own iron ore price index in the future,” said Bai. Data from China Customs shows that the country imported 443.7 million tonnes of iron ore in 2008, half of the world’s overall iron ore exports volume over the year, and the imports in January-April period in 2009 hit 188 million tonnes. (Xinhua)

China steel exports expected to keep falling in 2009

China’s steel exports is expected to keep falling in 2009, with annual export volume no more than 25 million tons, according to Liu Gang, a senior researcher from the National Development and Reform Commission. Liu pre-dicted at the Ferro-Alloys Conference that Chinese exports would deteriorate in the near term.

According to Liu, China’s steel exports will probably hit the lowest point in the third quarter. But it is still possible for steel prices to rebound in the second half year.China has spent the most part of its economic stimulus pack-age on steel-consuming industries such as building industry and auto industry. 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)

Chinese mills should demand bigger iron ore cut, Shagang says

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A n o f f i -cial with FAW Car Co., Ltd. s a i d M a y 2 6 that one of the company’s se-dans would be used in a grand m i l i t a r y p a -rade scheduled in Beijing on National Day, Oct. 1.

“I believe that the Nation-

al Day military parade will definitely use the Red Flag sedan,” which was domestically designed and developed, said Bai Yu, party chief of the company based in Jilin Province, northeast China. Bai didn’t give further details, but media reports have speculated that a new, high-end HQE model is expected to appear during the military review planned for the 60th anniversary of the founding of New China.

The 6m-long HQE, the Red Flag’s top model, is expected to go on sale this year for more than RMB 3 million (US$437,700). The Red Flag brand has been the pride of China’s car industry, said Bai. Late Chinese leader Deng Xiaoping and former President Jiang Zemin rode in Red Flag cars during National Day parades in 1984 and 1999, respectively.

FAW Car is a holding subsidiary of China’s largest car maker, FAW Group Corp., and was the first listed car producer in China. Red Flag and Benteng are two of its major models. Since the first Red Flag came off the production line in 1958, it has been used in many grand celebrations in China. (Xinhua)

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Like everybody else in his farming village, Zhan Changchun used to get around on a bicycle. This month, the 29-year-old walked into a local dealership, pulled out US$7,300 in cash from his leather satchel and drove away with the family’s first car: a seven-seat micro-minivan that’s jointly produced by China’s Wuling and General Motors.

The Zhans drained their life savings and bor-rowed from relatives, bold moves in a slowing economy. But they couldn’t resist a slew of govern-ment incentives: a 50% sales tax reduction, elimi-nation of hundreds of dollars in road maintenance fees, plus the biggest of them all, a 10% rebate for rural residents buying vehicles with engines smaller than 1.3 liters. It’s all part of Beijing’s “Send Automobiles to the Countryside” campaign, an ef-fort to speed rural development and boost domestic consumption at a time when foreign demand for China’s manufacturing exports is slumping. The government is also giving people in the country-side rebates for buying refrigerators and other ap-pliances.

“Government policy is good these days,” said Zhan, a big man with a round belly and cherubic face. He beamed as he showed off his gray van to visitors. The seats were still covered in plastic wrap. Red ribbons were tied around the side mir-rors, good-luck symbols for a new vehicle. “I never thought I could buy a car,” he said. That’s a refrain heard in many Chinese villages these days as hun-dreds of thousands of farmers join the motor age. And it’s a big reason China has overtaken the U.S. in car sales this year. While new-vehicle purchases in the U.S. plunged 37% in the first four months of this year, they jumped more than 9% in China, to 3.8 million, with record volumes in March and April.

China’s surprisingly strong car sales have given companies like GM, which is tottering at home, a much-needed boost. It’s prompted auto companies and makers of consumer goods to focus even more on China, particularly the vast, develop-ing rural regions. “Just imagine: If every farmer buys one cellphone, that would be 900 million units,” said Zhu Xinkai, an agricultural economics specialist at Renmin University of China.

Zhu doesn’t see China’s rural car culture reaching full bloom for at least another decade. But the global financial crisis appears to be pushing the trend. Among those taking advantage of the car incentives are migrant workers who have returned home after losing factory jobs; they’re breaking open piggy banks or borrowing to buy vehicles to launch delivery and other businesses.

In Chuzhou, a city of 4.5 million in Anhui province about 200 miles northwest of Shanghai, the average per capita income is only US$1,700. Many farmers get around in three-wheeled motor-cycles with a bed in the back for hauling goods. Yet people recently have been snapping up cars so fast that some dealers have run out of stock. About 3.5 million of Chuzhou’s population is considered rural. (latimes.com)

Shandong province plans auto behemoth

Three auto parts makers, including a leading engine maker and an earthmover manufacturer, will merge to create an industrial conglom-erate in Shandong province with sales projected to exceed RMB 100 billion by 2012, the latest industry consolidation move in China’s frag-mented auto sector.

Weichai Holdings Group, the biggest shareholder of the country’s major high-speed heavy-duty diesel engine maker Weichai Power, and Shandong Construction Machinery Group Co, parent of one of the na-tion’s leading earthmover makers, and Shandong Auto Industrial Group, will form a venture called Shandong Heavy Industry Group Co, accord-ing to separate exchange filings by their listed units.The three compa-nies, all based in the eastern province of Shandong, did not elaborate on the details, such as the financial terms, the timetable and the future structure, of the planned merger in their exchange statements. But they all said the positions of their controlling shareholders would remain un-changed.

Weichai Holdings owns 14.92 percent of Hong Kong and Shenzhen-listed Weichai Power and 30.59 percent of Shenzhen-listed Weichai Heavy Machinery Co. Shandong Construction Machinery has a 21.1 percent stake in Shenzhen-listed Shantui Construction, one of the coun-try’s biggest earthmover makers. The combined sales of the three listed companies amounted to more than RMB 40 billion in 2008, according to their annual reports. Shandong Auto Industrial Group has the capac-ity of producing 60,000 light trucks and RMB 1 billion of auto parts a year, according to Shandong Association of Automobile Manufacturers. (China Daily)

Red Flag car to grace National Day parade

In rural China, a bumper crop of new car owners

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The State Council, China’s Cabinet, May 18 announced that it would endeavor to create 3 million new jobs in light industry in the com-ing three years by boosting domestic demand. The State Council in February unveiled initial plans to boost light industry in a bid to buoy the economy together with the RMB 4 trillion (US$586 billion) stimulus package presented in November and nine other specific industry stim-ulus plans including petrochemicals, textiles and other sectors.

The General Office of the State Council presented the detailed light industry stimulus plans May 18 on its Chinese website www.gov-cn. The government would give financing sup-port to small and medium-sized light industry companies with good development potential in a bid to create more jobs, according to the plan.The industrial output of the light industry stood at 2.62 trillion last year, accounting for 8.7 per-cent of GDP. Total exports reached 309.2 billion U.S. dollars, accounting for 21.7 percent of the national total last year.

The production volumes of more than 100 types of Chinese light industry products, includ-ing home appliances, plastics, furniture and others were the world’s highest. The industry employed around 35 million workers by the end of 2008. Chinese light industry has felt the pinch from the global economic downturn and waning export demands. Since Feb. 1, an estimated 900 million Chinese rural residents were eligible for a rebate of 13 percent on the prices of home ap-pliances, in a move by the government to boost domestic sales of light industry products. These products include color TV sets, refrigerators, freezers, mobile phones, washing machines, com-puters, water heaters, motorcycles, air condition-ers and others.

“China will beef up efforts to bolster in-novation and industrial upgrading of the light industry, aiming to foster 10 light industry con-glomerates whose annual sales will exceed 15 billion yuan,” according to the plan. In addition, the government wants firms across the country to make existing facilities and production processes more environmentally friendly. The government ordered companies to improve the light industry’s products mix and reduce its pollutant discharge. Chemical oxygen demand (COD) must be cut by 10 percent or 255,000 tonnes by 2011 from the 2007 level. Waste water discharge will be reduced by 29 percent, or 1.95 billion tonnes by 2011 from the 2007 level, according to the May 18 plan.

“China would eliminate outdated produc-tion capacity of 30 million units of low-efficient refrigerators and freezers, 600 million units of incandescent bulbs and others,” the plans stated. The government will also step up efforts on im-proving product quality and is scheduled to for-mulate 450 new industry standards by 2011 in ar-eas including food additives, meat products, wine making, dairy products, beverages, furniture and others, according to the plan. (Xinhua)

Consumer goods industry maintains stable growth

China’s consumer goods industry kept stable development in the first four months this year, thanks to rising domestic demand that offsets falling export, said the Ministry of Industry and Information Technology (MIIT) May 22.

In the past four months, the industrial output of consumer goods grew by 8 percent. The figures were higher for March and April at 9.8 percent and 9.2 percent each. Among its major sectors, textiles, tobacco and phar-maceutical, and light industry grew by 8.1 percent, 6.6 percent, 6.1 percent and 13.8 percent in industrial output respectively. Industrial output of the four sectors accounted for 30.4 percent of the national total, statistics from MIIT showed. The light and textile industries, which had been among the ten industries supported by government’s boosting plans, reported shrink-ing decline in exports.

Exports of light industry fell by 10.9 percent and that of textile industry dropped 8.4 percent from January to April. However, the decline rates were 4.8 and 7.4 percentage points lower compared to that of the whole industrial export in the same period. (Xinhua)

China promotes consumption of green home appliances with price cutsChina is reducing prices for energy-efficient home appliances, the Na-

tional Development and Reform Commission (NDRC) said in a statement May 21. Price cuts went into effect May 21 and will last three years. The program is sponsored by the NDRC and the Ministry of Finance.

Consumers will find prices lowered between RMB 300 to RMB 850 (44 to 125 U.S. dollars) on energy-efficient air-conditioners, refrigerators, tele-vision sets, washing machines and motors.Cost reductions are expected to generate RMB 400 billion to RMB 500 billion of consumption demand and save 75 billion kwh of power. It could also have the environmental impact of cutting carbon dioxide emissions by 75 million tonnes annually, said Xie Zhenhua, NDRC vice minister.

Manufacturers of energy-efficient products are also eligible for subsi-dies although specifics were not released by the NDRC. “Energy-efficient products now occupy only 5 percent to 15 percent of the domestic market share. After the implementation of the price cuts, their market share was expected to be raised to 30 percent,” Xie said. (Xinhua)

Haier says to take 20% stake in NZ company

China’s largest home appliances maker Haier announced May 27 that it would take a 20 percent stake in New Zealand’s Fisher & Paykel Appli-ances. Haier did not reveal how much it would invest in the New Zealand’s white goods manufacturer for the stake, but Fisher & Paykel told the New Zealand Stock Exchange May 27 that Haier would invest about 80 million New Zealand dollars (nearly US$50 million) in the company.

Haier said in a statement that the two companies have also signed a co-operation agreement, pledging to complement each other’s technical advan-tages, share each other’s resources of market and supply chain, and enhance cooperation in after-sale services. “As part of the cooperation, Haier will franchise and distribute home appliances of Fisher & Paykel brand in the Chinese market, and Fisher & Paykel will franchise and distribute home ap-pliances of Haier brand in the Australian and New Zealand’s markets,” the statement said. Headquartered in the seaside city of Qingdao, east China’s Shandong Province, Haier is the world’s fourth largest home appliances manufacturer and employs more than 50,000 people globally. Founded in 1934, Fisher & Paykel mainly makes refrigerators, washing machines, cooking stoves and dishwashers. It enjoys the largest market share in New Zealand, but it is now debt-ridden due to falling New Zealand dollar and has been trying to reduce its overseas debt. (Xinhua)

China to create 3 mln jobs in light industry

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The just completed cotton season played havoc and spared neither the farmer nor the trader in the initial months of the new cotton crop arrivals in the market. Despite the fact that prices ruled at four year lows, there was minimal demand from the textile mills for want of liquidity. China fared no better, but was saved by the market intervention of the government which procured huge amounts of cotton from the farmers and ginners.

With the objective of a getting a clear picture in the current market situation, Fibre2fashion spoke to Ms LiLin, Director (Public Relations), China Cotton As-sociation, who said, “China is the largest cotton producer, consumer and importer in the world. In 2008, China’s cotton output reached 7,490,000 tons and imports registered 2.11 million tons; yarn production completed 21.49 million tons, giving it the number-1 rank in the world”.

She added by saying, “China’s cotton imports from India marked 610,000 tons, 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 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 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 state reserves in total, which effectively protected the interests of farmers and stabi-lized cotton prices in domestic market,” she said.

The present difficulties are temporary, in the long run, China’s textiles and clothing are still relatively competitive in international market, and China has great potential lying in domestic demand. At present China’s economy has shown signs of warming-up. Meanwhile, China has implemented a series of plans to revitalize the textile industry, it is believed that China’s textile industry will bottom out very soon”, she concluded by saying.

We next asked her, if she visualizes the market bending towards the man-made fibre industry, to which she replied, “No matter, whether at home or abroad, cotton products have occupied a stable market share both in China and other countries in the world and with the improvement of living standards, as well as enhanced aware-ness of returning to nature and environmental protection, people will always have a attachment for cotton made products”.

About the consumer demand for organic cotton, she remarked, “As regards or-ganic cotton, we have not conducted any special study or research related to organic cotton, since, China has very small production and even less consumption”. (Fibre-2fashion News Desk)

China boosts domestic wool textile salesTHE 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 machinery imports drop 61 percent

According to a report compiled by the China Chamber of Commerce for Import and Export of Textiles, based on customs statistics, the nation’s imports and exports of textile ma-chinery during January-March 2009 decreased by 56% from the year before to US$1,097 mil-lion: imports, US$866 million (down 61%) and exports, US$231 million (down 42%).

Knitting machines were the top import item with US$143 million (down 44%). Even for exports, knitting machines were the largest item with US$93.24 million (down 20%). India was the largest market with US$72.26 million (down 2%). (Asian Textile)

Baotou Apr. textile Exports up 86.72%

In April, Baotou (in Inner Mongolia Au-tonomous Region) textile makers saw their textile exports rally and rise sharply from the previous month. The statistics show that tex-tile companies in Baotou exported a total of US$10.89 million textile products in April, up 86.72% from March.

With the increase, Baotou became one of cities across China to see a growth in textile exports in April. Industry insiders revealed that textile exports in Baotou had partly re-bounded since April as exporters received more export contracts in former months. The Chinese central government US$600 billion stimulus package does have a textile focus. There are signals of Chinese exports of tex-tiles moving back to world market but they are very early signals and growth will depend on the big picture of global economy. (CTEI)

Textile sector will bottom out very soon – Ms Lilin, CCA

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99Bill launches one-stop “Personal Bill Center” service99Bill 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)

Lenovo reports loss from restructuring costs and sales

declineChina’s leading computer maker Lenovo

Group reported a second consecutive quarterly loss on restructuring costs and a drop in its world-wide computer sales, China Daily reported on May 22. The world’s fourth largest PC vendor posted a loss of US$ 264 million for its fiscal fourth quarter that ended March with its worldwide PC sales down 8.2 percent year on year due to weakening demand, dragging its whole year earnings into the red.

The company had reported a loss of 96.7 mil-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-ing time in our industry worldwide, and we took some significant steps to get our business back on the right path,”said Lenovo Chairman Liu Chuan-zhi. He reaffirmed that Lenovo “can make signifi-cant progress” against competitors a year later by focusing on emerging markets.Yang Yuanqing, chief executive of Lenovo, said China is Lenovo’s most important market to get through the current difficult period, as the company’s sales in Greater China increased 4.4 percent in the fourth quarter, and its market share increased 1.1 point to 26.7 percent.

Lenovo rearranged its business organization earlier this year to divide its regional operations into two business groups, with one serving to devel-oped markets and the other, emerging markets.The company has also set up two product groups based on its “Think” and “Idea” branded products, which mainly serve corporate customers and individual consumers, respectively. The reshuff le, together with a cut of 2,500 jobs in January, will save the company 300 million dollars in operational costs in the year to come, Lenovo said. (Xinhua)

China Mobile plans mainland market listing via CDR

China Mobile, the country’s leading mobile carrier by subscrib-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 company plans to get back to the mainland market “as early as possible” by way of issuing China Depositary Receipts (CDRs), Wang said after attending the company’s annual shareholder meeting.

The company had been listed in Hong Kong and New York for nearly 12 years and is eager to seek a listing on the mainland as early as possible so that domestic investors could have a chance to invest in the company, he said. By issuing CDRs, the company could maintain consistency with its operations in the other two markets in terms of management, supervision and information disclosure, Wang said. The H-share price of China Mobile rose 2.6 percent to 74.15 Hong Kong dol-lars on the same day. (Xinhua)

China Unicom to invest RMB 35 bln in Guangdong

China Unicom (Hong Kong) Ltd, the country’s second largest telecom operator, on Monday entered a strategic partnership with the Guangdong provincial government to pour RMB 35 billion into the province in the next five years, sources reported. According to the framework agreement, the cooperation will extend to IT infrastructure construction, e-politics, e-commerce, the IT industry, wireless develop-ment and the sharing of telecom resources.

Mobile Communications Corp, the parent company of the coun-try’s largest telecom operator, China Mobile Ltd, signed a similar co-operation framework agreement with the local government to invest a total of RMB 80 billion within five years in the province to deploy TD-SCDMA network construction and speed up the development of the IT industry.

China Unicom earlier said that it will invest RMB 26 billion in Shanghai within two years to support the city’s telecom sector and to contribute to network construction for the World Expo to be held in the city in 2010. That investment is expected to help create 10,000 new jobs by 2010, in part by expanding China Unicom’s call center employee base from 400 to 5,000 for the hotline service for the event. (China Knowledge)

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pany will be able to produce 48 A320 planes every year, according to Jean Luc Charles.

“With the final assembly line here in Tianjin, we deepen and expand our industrial relationship, which is a key pillar of the internationalization strategy of Airbus,” said Jean.

According to a report by the Tianjin Airport-based Industrial Zone, China has become the world’s second largest aviation market after the United States. The country is estimated to need 2,670 passenger planes in the next 20 years.

The Airbus company estimated in last February that the Chinese mainland would need more than 3,000 aircraft between 2006 and 2025, including 180 super jumbo passenger planes.

In addition to the Tianjin assembly line, Airbus purchased 70 million U.S. dollars worth of high quality components and materials from Chinese companies in 2007 alone. Boeing and Airbus currently dominate the world’s large airplane market, and only manufacturers in the U.S., Europe and Russia own the tech-nologies to build such planes.

China, however, is actively developing such technologies. The country set up its first ever jumbo passenger aircraft com-pany in Shanghai in May, 2008, taking a major step forward in its large jet program.

Analysts believe that China would play a bigger role in the world’s aviation industry with the Tianjin line in operation, as final assembly lines stand for a core competitiveness of aviation manufacturers. “China is an important — and increasingly im-portant — part of the global aviation family,” Jean said. (www.chinaview.cn)

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Hainan Airlines to get US$440m capital injectionHainan Airlines will get a capital injection of US$440 million from its parent company and the Hainan provincial government by

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 HKIAChina 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 successfulAfter four hours’ f light, the first

China-assembled Airbus A320 aircraft landed smoothly at Tianjin Binhai Inter-national Airport at 2:56 p.m. on May 18, a symbol of successful test flight.

The aircraft will be delivered to Dragon Aviation Leasing in June from the Airbus Delivery Center in Tianjin and will be operated by Sichuan Air-lines.

“I am confident that the plane will be delivered to Sichuan Airlines by the end of June as scheduled,” said Jean Luc Charles, General Manager of the Airbus (Tianjin) Final Assembly Line Co. Ltd (FALC), after the test flight. He also said that this A320 assembled in China unques-tionably demonstrated the same quality and performance as those assembled and delivered in Hamburg or Toulouse.

The A320 FALC, which started to work in August 2008, is a joint-venture between Airbus and a Chinese consortium compris-ing Tianjin Free Trade Zone and China Aviation Industry Corpo-ration (AVIC). Airbus China holds 51 percent of the stakes, while the Chinese Consortium holds 49 percent.

The Tianjin assembly line, the third on top of two in Tou-louse and Hamburg, is to deliver two types of aircraft of the A320 family — A319 and A320. The A320 family, which includes the A318, A319, A320 and A321, is recognized as the benchmark single-aisle aircraft family. “China has become more involved in the world’s aviation industry,” said Professor Li Yanhua from the Civil Aviation University of China, citing that the huge market potential has lured world’s aircraft giants as Boeing and Airbus.

The Tianjin-based assembly company is expected to deliver a total of 11 A320 aircraft this year. Starting from 2011, the com-

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The Science Park of Qingdao University of Science and Technology is becoming an international hub for rubber research institutes from all over the world.

Statistics show the Science Park has already attracted world’s 18 key labs and 22 scientific and technological enterprises of rubber and chemi-cal industries.

With a gross product value of nearly 200 million yuan in 2008, the park is developing into an industrial incubation base directed on re-search, development and transformation of new rubber materials.

“This Science Park will attract more high-end rubber institutes to settle down, and it will develop towards China’s Rubber Valley”, said Gao Qing, party secretary of Qingdao University of Science and Tech-nology.

Lanxess Deutschland, German leading manufacturer in plastics and rubber, established its second largest Research and Development Centre (RDC) at the park. The US$16 million project moved to its second stage on May 21, 2009.

Many other companies are also setting up their projects at the Sci-ence Park, including Polyurethane RDC and Qingdao International Sci-ence and Technology Cooperation and Communication Demonstrative Base.

The 50-thousand-square-meter park has also become a home for the National Engineering Research Center of Tyre Process and Control and a RDC of new rubber material.

As of April, 150 million yuan have been invested in the Science Park where a batch of industrial enterprises continues to develop rapidly. (China Daily)

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China’s first Mars probe, Yinghuo-1, is expected to be launched in the second half of this year, an official of the Shanghai Academy of Space flight Technology (SAST) said on May 28.

The probe had passed test of the research phase, Zhang Weiqiang, deputy secretary of SAST Committee of the Communist Party of China, told the third Shang-hai International Aerospace Technology and Equipment Exhibition.

The event runs from Thursday to Saturday and in-cludes a full-scale model of Yinghuo-1.

Yinghuo-1 will be launched by a Russian carrier rocket, accompanied by the Russian aerocraft Phobos-Grunt. The Russian aerocraft is making a sample return mission to Phobos, one of the moons of Mars, Zhang said.

Yinghuo-1 would go into Mars orbit in 2010 after a 10-month, 380-million-kilometer journey, Zhang said. But unlike the Russian craft, Yinghuo-1 won’t land but would only orbit and observe, Zhang said.

The Chinese probe is 75 centimeters long, 75 cm wide and 60 cm high. It weighs 115 kilograms and was designed for a two-year life, according to Zhang. “Yin-ghuo” means light from firefly in Chinese.

Yinghuo-1 is expected to discover why water dis-appeared from Mars and explain other environmental changes of the planet, Zhang said.

The project is China’s third major space explora-tion plan after the manned space project and the moon exploration program. It was also the first time that China would explore another planet, Zhang said. (Xinhua)

China to launch first Mars probe in second half of 2009

Microsoft unveils new Internet search engine Bing Microsoft on May 28 unveiled a new search en-

gine named Bing, renewing its efforts to challenge the dominance of Google in the Internet search market.

The company said the new service will begin to roll out over the coming days and will be fully de-ployed worldwide on June 3.

“Today, search engines do a decent job of help-ing people navigate the Web and find information, but they don’t do a very good job of enabling people to use the information they find,” Steve Ballmer, Microsoft’s chief executive officer, said in a statement.

“Bing is an important first step forward in our long-term effort to deliver innovations in search that enable people to find information quickly and use the information they’ve found to accomplish tasks and make smart decisions,” he added.

Microsoft said the Bing service, billed by the company as a Decision Engine, will initially focus on shopping, travel, local business and information, and health-related research — areas in which people want more assistance in making key decisions.

The software giant still has a long way to go to increase its share in the search market.

According to latest analysis by market research firm comScore, in April this year, Google led the U.S. search market with 64.2 percent of the searches con-ducted, followed by Yahoo of 20.4 percent, with Mi-crosoft a distant third of 8.2 percent. (Xinhua)

China considering manned lunar landing in 2025-2030

A space scientist has said that Chinese scientists are considering the feasibility of a manned lunar landing mission at an appropriate time be-tween 2025 and 2030.

China will be able to fetch samples collected by unmanned lunar probe by 2017, Ye Peijian, chief designer of the lunar probe with China’s Chang’e Project, said at a science lecture held on May 22 in Shanghai.

“Through the development of lunar probes, we have made constant progress of the ability to explore the outer space,” Ye said.

China launched its lunar mission in 2007 by successfully sending a unmanned probe Chang’e-1 to the lunar orbit. The spacecraft managed to transmit some pictures of the moon’s surface back in January last year.

Chang’e-1 ended its 16-month mission on March 1 this year by impacting the moon, bringing the first phase of the nation’s three-stage lunar mission to an end.

The second phase will lead to a landing and launch of a rover ve-hicle on the moon’s surface.

According to Ye, China will launch the second lunar probe Chang’e-2 in 2010 which will conduct research at a 100-kilometer-high moon orbit as the preparation for a soft landing by Chang’e-3.

“By 2013, China will send the landing craft and rover vehicle to the moon,” he said.

The chief designer said that Chang’e-3 will use variable thrusters to make a vertical landing on the surface near the moon’s equator area.

The lunar rover will leave Chang’e-3 and work on the moon’s sur-face for three months, Ye said, adding scientists have decided to adopt isotope technique generator to provide energy for the rover when it is in lunar nights when temperatures drop to 200 Celsius degrees below zero.

For the third phase of the mission, China will recover a spacecraft carrying samples from the moon by 2017, and according to the current design of a sample collector, two kilograms of lunar samples can be brought back, Ye said. (Xinhua)

University Science Park to become “China’s Rubber Valley”

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A pilot program in which the sick are reimbursed the majority of their medical costs has been extended in Shaanxi’s Shenmu county.

Under the program launched in March, the local gov-ernment pays for medical bills above 200 yuan (US$29) at township clinics, and 400 yuan in county-level hospitals.

It also pays for medical bills above 3,000 yuan at hos-pitals based outside the county. No more than 300,000 yuan can be repaid for medical bills annually per person.

Shenmu has a population of 380,000 but only those with a residential permit and who are covered by the coun-ty's unified medical insurance are eligible for the benefits.

The pilot program would continue as part of a 15-month investigation before its implementation.

Lei Jiangsheng, publicity department chief of Shenmu county Party committee, said that there had been difficul-ties with the pilot program but that it would continue any-way.

Local residents welcomed the program and the num-ber of hospital inpatients was 30 percent higher during March and April than the same period last year. It was lower for May.

According to the county health bureau, 2,070 inpa-tients received 9.6 million yuan in medical reimbursements in March and 12.7 million yuan in April.

He Fengying, an unemployed intestinal cancer patient who is receiving treatment at Shenmu county hospital, said the policy was saving her life. She said her family, which has an annual income of 20,000 yuan, had almost been bankrupted by more than 100,000 in medical bills last year.

However, she has spent just 1,000 yuan on medical bills at the hospital in the past 10 days.

“We are so lucky to be born in Shenmu, which is the only place in the country that has such a good policy,” she told a newspaper report.

Zhao Jie, a medical reform expert with Party School of Central Committee of CPC, said: “As a quest guided by the present nationwide medical reform that urges medical service supplier and acquirer to increase input, Shenmu's program is very positive and significant.” (China Daily)

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-ing entirely by 2011

A Chinese tobacco control organization said on May 28 that more than 20 hospitals nationwide had been certified smoke-free.

Tobacco addiction is not only a bad habit, but a serious chronic disease, Wang Chen, vice president of the Chinese Association on To-bacco Control (CATC) said on May 28.

The CATC initiated a tobacco control campaign among hospitals starting in 2001.

“We firmly support the government’s decision to ban smoking in medical institutions and will invite more hospitals to join the cam-paign,” Zhang Jing, communication officer of the CATC, said.

Ahead of World No Tobacco Day, the health authorities have asked all medical administrations, hospitals and disease control centers to impose total smoking bans by 2011.

This goal was declared by a mandate jointly issued by the Health Ministry, State Administration of Traditional Chinese Medicine and the logistics departments of the People’s Liberation Army and the People’s Armed Police Force.

At least half of medical institutions should be smoke-free by 2010, it said.

The mandate ordered all civilian and military medical organiza-tions to develop detailed plans for a ban, which would be a practical measure to fulfill the Framework Convention on Tobacco Control (FCTC).

The FCTC was initiated by the World Health Assembly and ap-proved by the WHA’s 192 members in 2003. China signed the conven-tion in 2003 and the country’s top legislature ratified it in 2005.

The health authorities asked each medical institution to establish a special work team for the implementation of the smoking ban so that a nationwide network could be formed in 2010.

All hospital doctors should ask patients about their smoking histo-ry during the first visit and make a note of that in the medical record, as well as quit smoking instructions, according to the mandate. It ordered medical institutions to impose strict non-smoking regulations.

The mandate specifically states that all military and civilian medi-cal institutions are banned from offering cigarettes to guests.

The health authorities also asked the medical institutions to or-ganize non-smoking campaigns to raise public awareness of tobacco’s danger around May 31, this year’s World No Tobacco Day.

China is the largest producer of cigarettes in the world, with most consumed domestically. (Xinhua)

County to continue free healthcare trial

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China’s central bank has asked lenders to ensure credit goes into the real economy, saying that risk control and credit expansion were equally important.

“We can’t rule out the possibility that some money has flowed into the stock market, a situation that deserves close government monitoring,” Guo Tianyong, professor at the Cen-tral University of Finance and Economics, said on May 15.

He also said that at present, money velocity in China — the rate at which money in circulation was used to buy goods and services — was slow. He said this perhaps indicated that some of the money might not have gone into the real economy, but had instead flowed from the banking system directly into the stock market.

The request was posted in a notice on the People’s Bank of China (PBOC) website. The country’s credit boom this year reflected the relatively easy monetary policy and helped reduce deflationary expectations and boost confidence to ensure stable economic growth, according to a joint meeting of the PBOC and the China Banking Regulatory Commission.

The meeting also stressed banks should better scrutinize risk and ensure that money flowed into the real economy to meet the capital demand of industrial restructuring. Banks should continue to improve credit structure and capital ad-equacy.

Chinese banks lent RMB 5.17 trillion (US$760.29 billion) in the first four months of the year, exceeding the RMB 5 tril-lion full-year target set early this year. Liu Yuhui, an economist with the Chinese Academy of Social Sciences, said that new bank loans could reach about RMB 9 trillion this year.

The PBOC said in its quarterly monetary report on May 6 that China’s economy had done “better than expected” in the first quarter and pledged to maintain “ample” liquidity in the financial system to ensure economic recovery. (Xinhua)

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)

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.

“We were worried about overheating earlier last year,” said Lu Jinyong, a professor at University of International Business and Economics in Beijing. “But the business environment has changed quite dramatically since. Year-on-year comparisons do not make as much sense now.”

In April 2008, actual FDI surged 70 percent from the same period the previous year to total US$7.6 billion. Much of it, some experts argue, was so-called hot money trying to profit from the expected appreciation of the RMB against the US dollar.

“Given the high base last year, China should neither feel too surprised nor dejected by the recent FDI figures,” said Dong Xian’an, macro-economic analyst with Southwest Securities, a major domestic securities brokerage. “There is other data show-ing that the economy is bottoming out. And that’s the big pic-ture.”

“The economy’s contraction is likely to relax in the second half of the year, and it is very likely that FDI inflows will recover and start to increase at the turn of the year,” Dong said.

Su Chang, a macroeconomic analyst with China Economic Business Monitor, forecast that as the global situation becomes more stable, China’s FDI performance will improve in the next few months. Lu estimated that China’s FDI will be around US$80 billion, not too drastic a drop from last year’s US$92.4 billion.

Even with an expected FDI decrease, “China will be one of the few bright spots in the world,” Lu said. According to a white paper on American business in China released last month by the American Chamber of Commerce, 22 percent of American com-panies said China was their No 1 global investment destination. Between 75 and 78 percent ranked the country as one of their top three investment destinations every year since 2004. (China Daily)

Bank of China to set up Brazilian branch

FDI decline “not cause for concern”China’s central bank stresses credit boom should go to real economy

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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.

However, the statement on the ministry website on May 14 failed to say when the cut would take effect. The move would “further implement the government’s policy of boosting domes-tic demand and push forward steady and rapid economic devel-opment,” said the statement.

The new rule will apply to investments that make intense use of land and those involving the processing of agricultural, forestry, animal husbandry and aquatic products.

The ministry set minimum prices for industrial land use in January 2007 to curb the selling of cheap land-use rights for in-dustrial use to attract investment and seek a higher GDP growth. The price ranged from RMB 60 (US$8.77) per square meter in some counties in northwestern Xinjiang Uygur Autonomous Re-gion to RMB 840 per square meter in the suburbs of Shanghai, China’s largest metropolis.

Wang Xiaoying, researcher of the Chinese Academy of Social Sciences, said that industrial investment had contracted because of the economic slowdown, which dragged down the demand for industrial land.

The national average industrial land price was RMB 721 per square meter in the first quarter, down 1.08 percent from the fourth quarter of last year, and down 1.1 percent year on year, according to the ministry.

Zou Xiaoyun, deputy chief engineer of the China Land Surveying and Planning, said the new rule would help reduce cost for enterprises, and stimulate them to expand investment, especially for new projects. (Xinhua)

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)

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)

Chinalco-Rio Tinto deal gets approval from U.S. regulator

Review into investments by SOEs China’s state-owned asset regulator will launch an in-

vestigation into investments made by centrally administered state-owned enterprises in the financial sector in a bid to help them avoid risks.

A total of 28 SOEs, including Air China, China Eastern Airlines and China COSCO Holdings Co, have invested in financial derivatives but most of them suffered losses.

The overriding concern of the SOEs, when they invest in financial derivatives, is to ensure they avoid risks and not to speculate, said Li Wei, vice director of the State-owned Asset Supervision and Administration Commission.

Air China lost RMB 7.5 billion (US$1.1 billion) on fuel-hedging contracts by the end of last year, and China Eastern’s wrong-way bets on hedging dragged its revenue down RMB 6.4 billion.

Li said SOEs which plan to invest in financial deriva-tives must meet four conditions - abiding by hedging rules, hiring financial institutions for consultation, controlling risks and getting the commission’s approval.

“SOEs are short of financial talent to deal in such in-vestments, which led to an underestimation of risks and violations, so the commission will issue suggestions after an investigation,” Li said. The SOEs have seen their first annual decline in net profit last year since 2002, diving more than 30 percent from a year ago to RMB 665.29 billion. (Shanghai Daily)

Lower industrial land prices to boost investment

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Electronic 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-

ing 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.

Yang Wei

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Electronic Information Industry: Calls for Upgrade and Reform

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After several months’ downtrend, the export market of Chinese flat-panel TV began to recover in the first quarter, with 5.815 million LCD TV sets ex-ported to overseas, increasing by 17.7% from the same time of a year ago, and 132,000 plasma TV sets exported, up by 1.5% with the same comparison.

Since the later half of 2008, export volume of color TV sets from China continued to decrease, making the exporters of such products in China really touch the influence of economic crisis. In February of this year, Buy American Act was adopted by US Con-gress, which reminded of the Smoot-Hawley Tariff Act in 1930s. To deal with the eco-nomic crisis then, the US government issued Smoot-Hawley Tariff Act, and highly lifted the tariff tax for over 2,000 types of products. Not long after the act, many countries like UK, France, Germany and so on took retaliatory measures against USA, leading a shrink of about 66% in international trade in 1934, compared with that of 1929. Though the Americans surely know that such an act of trade protectionism may cause a coun-terproductive result, they passed it, reflecting that they are in a desperate situation. As important suppliers to the USA, Chinese electronic products exporters may be affected by the new trade protection measure, Buy American Act.

The TV sets exporters in China may not forget the experiences in 2004. On May 2, 2003, three color TV set manufacturers in USA, Five Rivers, IBEW and IUE-CWA, applied to DOC (Department of Commerce) of USA for an anti-dumping investigation. The three companies complained that the selling price of Chinese 25-inch color CRT TV in USA was far below the market prices, which violated Item 731 of 1930 Tariff Tax Act, and practically harmed local industries. The US DOC and ITC had an immediate anti-dumping investigation against some types of imported color TV sets from China, and ruled that the complain was true and the dumping existed, meaning the involved Chinese TV sets were sold at a price below the normal market price, which practically harmed lo-cal industries. Soon after, DOC ordered the US Customs to add an anti-dumping tax up to 78% to the involved Chinese TV sets arrived in USA from June 3, 2004.

When received the final decision from US Department of Commerce and Interna-tional Trade Committee, the leading color TV sets exporters in China includng Chong-hong, XOCECO, TCL and KONKA appealed to United States Court of International Trade, but US DOC and ITC maintained the former ruling. Due to the anti-dumping

tax, the sale volume of influenced TV sets from the four companies in USA dived.

However, according to the official statistics from USA government, from 2001 to 2003, the period of antidumping investigation against imported Chinese TV sets, the whole color TV industry in USA was good, and the US companies in this industry showed a good compet-ing ability and maintained smooth de-velopment, against the competition from imported Chinese products, except Five Rivers, the having declined and the only local brand of USA. As to the influence to 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-ers who weigh nothing to them. However, antidumping measure is a double-edged sword, meaning the common consumers in USA are also the victims of the case, as they can no longer buy low-priced and good-quality China-made color TV sets.

Though the export market of Chi-nese flat-panel TV sets recovered a bit in April, the economic recovery in USA was slower than the expected, which may lead to new trade conflict. In last December, the USA appealed to WTO, saying that China violated the WTO rules as the govern-ment provided subsidy to textile, fridge and chemical products and other products. In early February, EU declared to add a temporary antidumping tax up to 25% to China-made steel wire rod. All these are signs of a new wave of trade protection, and more challenges may be waiting for the electronic products exporters in China.

Though realizing the spread of trade protection will severely slow down the eco-nomic recovery, even the world economy, new types of trade protection come to surface in major trade countries. Now, non-tariff trade barriers are often used to protect local companies, and new barriers are introduced, such as technical barriers, environmental protection barriers, and social responsibility barriers and so on, under the frame of WTO.

Encounters & Responses Trade Protectionism

— Export of Chinese Electronic Productscao Naicheng

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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 establish stricter technical and performance standards and qual-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 and technical certification systems, to realize the target of trade protection though technical barriers.

On the grounds of environment protection, developed coun-tries have set up environmental protection barriers, such as ad-ditional tax for environment protection, to prevent the inflow of low-priced foreign products. EU set up ISO14000 environmental management system, asking the production, sale, usage and re-cycling and so on of the imported electronic products to meet the strict standards for environmental protection. Other countries follow. USA establishes UL and Green Cross certificates, Canada carries out ECP certificate. Some countries ask manufacturers to count the fee for environmental pollution control into cost system. Otherwise, these companies will be considered to carry out eco-dumping, and will be levied environmental anti-dumping tax. These rigorous standards and certificates are headache problems for electronic products exporters in China.

Some developed countries connect the international trade with social responsibilities as labor standards and public welfare and so on, building up a barrier called social responsibility. For example, Social Accountability 8000 (SA8000 for short), a man-agement standard system mainly involved in protecting working environment, condition and labor rights. In name of strengthen-ing companies’ social responsibilities, through SA8000 certifi-cate, some countries are connecting trade with issues of human rights, to limit the inflow of low-priced products from undevel-oped countries.

The H1N1 flu that is annoying the world at present is also taken as a measure for trade protection. Still, some hidden trade protection methods are adopted by western countries intention-ally or unintentionally against China-made products, through discrediting China and Chinese products on media. This may be not a trade protection measure, but the media actually ruins the image of China-made products and indirectly protects local in-dustries. So, this method is becoming popular.

As the major developed countries are struggling against the influences of financial crisis, the electronic products exporters in China should hold on their target, positively respond to the pos-sible trade protection measures, and maintain a smooth increase in exports.

First, the exporters should upgrade their products. In re-cent years, we have made great progresses on improving products quality and grades, but in general, China is still a low-end prod-ucts supplier, wining the international market through low prices. To secure a long-term competing ability and higher profits, the exporters in China, especially those electronic products exporters should modernize their core technology, strengthen the R&D and innovation ability, and add more technical and brand and other added value to the products, in order to improve the international image of China-made products.

Second, the industrial associations and organizations should play their role of organizing and coordinating, prevent

the vicious price competition. There are many industrial associa-tions and organizations in China, and they should coordinate the companies in this industry, prevent vicious competing actions and organize the companies against the foreign trade barriers. The companies should rely on the associations, and join together for more strength.

Third, construct an export alert system. Entering WTO, China is more often encountering trade barriers, and some indus-trial and governmental organizations have begun the construc-tion of export alert system. The concerned departments of the government and industrial associations should strengthen the propaganda and training, and boost the system construction and improvement, helping exporting companies in China to respond the trade protectionism rightly and quickly and improve their self-protection.

Forth, export companies should improve the ability in responding the complaints. The export companies in China have not got familiar with the foreign trade barriers, and can’t play their roles as respondents. Once an anti-dumping case against Chinese products comes into place, the involved exporting com-panies should actively respond, with the knowledge that only responding can break the trade barriers and protect the legiti-mate rights and interests of their own. Meanwhile, we need to strengthen the training of international trade talents, and reserve professional capable of dealing with foreign trade barriers.

Fifth, we should actively participate in the drafting and ad-justments of international standards, to make and renew the related industry and product standards in China. The related departments in the governments and industrial associations and agencies should strengthen the communication and cooperation with various inter-national standard organizations and participate in the drafting and adjustments of international standards, to have a better position against the technical barriers. At the same time, we should renew the knowledge of the trend of international technical standards and technical barriers, and then lift the technical standards for China-made products, making them meet the requirements from developed countries, while help more companies gain the related international quality systems’ certificates. That the exporting com-panies try to meet the international standards can improve their competing ability in world market, and also stimulate the compa-nies in China to close to the higher product standards, boosting the development of Chinese industries, and protect domestic consum-ers’ legitimate rights and interests.

Though world economy is still under the influence of eco-nomic declines, the international environment is severe and there may be trade barriers, Chinese export companies should be con-fident, as there are chances.

(Author: MBA and Master of Engineering, a consultant of Allpku, who is engaged in international trade and inter-national management study for years, and has a unique insight of trade protection through non-tariff barriers. )

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With European, American and Japanese economies still in recession, exter-nal demand remaining weak, total revenues of China’s electronic informa-tion industry witnessed a decline in the first four months of 2009, sliding 2.2 percent year-on-year, according to statistics released by China’s Ministry

of Industry and Information Technology on May 22.Since 1978, China’s electronic information industry has been advancing at a high

speed, having far-reaching and favorable influence on other branches of the national economy. After experiencing a long term of fast development, China’s information in-dustry now is facing a unfavorable situation. This article will provide an overview of the information technology industry in 2008.

The slowing down of growth rates in all aspects Growth rate of production slows down. The production of mobile phones in China

in first ten months of 2008 reached 479.517 million sets, up 6.7% year-on-year, and the growth rate is down 18.9% year-on-year; the production of microcomputers reached 119.298 million sets, up 17.1% year-on-year, and the growth rate down 19.5% year-on-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 shrink further -- the output of fax machines is down 10.6% year-on-year; the output of VCRs is down 21.6% year-on-year.

The growth rate of information technology is lower than national industrial average growth rate. In the first half year of 2008, the growth rate of electronic manufacturing industry experienced a slight rebound, and reached its summit in June. But in the third quarter of 2008, the industry growth rate declined rapidly, and by the end of October, the main business income of manufacturing with over RMB 5 million scale was up 15.7% year-on-year, but the growth rate was down 5% over the growth rate in the first half of 2008, and that the growth rate was down 10.7% over the national industrial average growth rate.

Growth rate of export and import slows down, which is lower than the growth rate of national foreign trade. In 2008, China’s electronic information product’ import and

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-on-year, the growth rate was down 6.9% year-on-year, and down 7.4% over the growth rate of national commodities im-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 1.4% over the growth rate of national ex-port trade.

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 f irst 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 market and microcomputer market.

Growth rate of Midwest area over-took that of the East in 2008, as the Midwest area went through an industry transfer. In the first ten months of 2008, the income of electronic information manufacturing in east China reached RMB 3793.48 billion, up 14.6% year-on-year; the income of western region reached 104.74 billion Yuan, up 37.9% year-on-year. The growth rate in western region is up 23.3% over the growth rate in eastern region. The income of central region reached RMB 157.33 billion, up 29.5% year-on-year, whose growth rate is up 14.9% over eastern region.

Lose or win, it is tied up with the global economy

In the first half of 2008, enterprises suffered increasing cost pressures. The continuous increase in prices of interna-tional bulk commodities led to a global inflation as many European and American developed countries’ inf lation reached record levels in recent years. Imported in-flation pressure as well as internal factors in China’s economy led to increasing PPI, which led inflation to reach new heights in ten years in August. Rising PPI resulted in

An Overview of the Electronic Information Industry in 2008Ji Yang

Zhongguancun, the "silicon valley" of China.

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increasing cost pressures for the electronic information industry. On the other hand, average retailing prices of electronic products continued to fall. Rising costs and decreasing product price mean there is smaller room for profit, which is reflected in the net and gross profit rate of Lenovo, ZTE, BOE, and other IT enterprises.

On the export side, in the first half of 2008, export fluctuated but did not record an obvious decline, which in the second half of 2008 showed a much sharper downturn trend. The growth rate in June was 23.6%; but the growth rate in August, September and Oc-tober were respectively 22.5%, 21.7% and 20.5%. In the second half of 2008, the gradual recession in European and American economies led to the gradual decline in China’s electronic information products, which seriously the industrial development due to a large reliance on exports, as showed in the 2007 statistics that the whole electronic information industrial export dependency index was about 60%.

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 5 million Yuan). The growth rate in 2008 Q3 decreased rapidly, 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 China’s mainland electronic manufacturing has cost advan-

tage worldwide, but its operation efficiency is much behind that of Japan and China Taiwan. China’s electronic information industry should eliminate its backward capacity and improve manufactur-ing efficiency.

Generally speaking, China’s electronic information industry takes on an extensive growth, driving by export and investment. Lowering the cost has been a major competition method in the development of China’s electronic information industry. How-ever, this development mode has been not as smart as before in recent two years. Long term development of China’s industry should turn to technology innovation and opening of domestic demand.

(Author: graduated from Law School of People University)

For 10 years, the most valuable household appliance in herdsman Chao Lu’s home in north China’s In-ner Mongolia was the 14-inch TV set, purchased when he earned about RMB 4,000 (US$580) a year,

reported by Xinhua. “I could not bring myself to buy a new TV set, although the old one often failed to work properly. I had to support a family with very little money.” Now the old TV has been replaced by a 26-inch LCD color set. “The new TV set looks great. Sharp images and good sound make it worth the money,” says Chao Lu, 33, who paid RMB 1,950 (US$285) for the set in Taipusi Banner, Xilinguole League, two days before last month’s Lunar New Year holiday. He

Countryside, Rocky Road for Home Appliances

Guo liqin, li Zhen

also enjoyed a 13-percent subsidy, worth RMB 253, from the government. “With the money saved, I could buy more than 10kg of mutton. It looks as if the government has sent me a special gift for the Spring Festival.” The “Home Electrical Appliances to Rural Areas” scheme has been operating on an experimental basis for one year. Subsidies have been al-located to farmers in the provinces of Shandong, Henan and Sichuan since December 2007, and 3.5 million home appli-ance sales have been made in these provinces since the end of October 2008, according to Ministry of Finance statistics. Chao Lu was just one of the farmers who bought their TV sets under the scheme.

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However, not every one is enjoying the bonus, Gao Wan-sheng, a farmer in Linyi, Shandong Province wanted to buy a refrigerator. But on the two occasions he tried to make the pur-chase he was told the model he wanted was out of stock. This is because there is a narrow profit margin on such appliances. An-other deterrent is the complex procedure involved in obtaining the subsidy. It requires submitting the receipt for the merchan-dise, ID, purchaser’s bankbook and various other documents to the local finance department. The application must then be approved at various levels. The subsidy is eventually deposited to the farmer’s bank account. Yang Hong believes more farm-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-ers to survive the international economic downturn which had driven down their exports. The subsidized sale targeted at farm-ers cover color TV sets, refrigerators, washing machines, air conditioners, water heaters, personal computers, mobile phones, microwave ovens and induction cookers. Price caps are set for these products. The rebate to the consumers is shouldered 80 percent by the central fiscal government, and 20 percent by pro-vincial fiscal governments.

Under the new program, more than 900 million farmers are eligible for a subsidy equal to 13 percent of the prices of home appliances they bought. The four-year policy was designed to stimulate rural consumption to boost domestic demand as ex-ports weaken amid the financial crisis. Increased sales could also help home appliance manufacturers upgrade their busi-nesses and fare better in the economic downturn.

An estimate by the Ministry of Finance earlier this month showed sales of up to 600 million home appliances in rural China by 2012, or during the four-year implementation of the policy. The plan is expected to spur domestic spending by RMB 1.6 trillion (US$234 billion). Wang Bao’an, an official with the ministry, said the program was the first time the coun-try has leveraged its fiscal subsidy instrument for the consumer market. He also expected the project to help upgrade rural quality of life.

Can countryside offset the trade imbalance? China is now the world’s largest home electrical appli-

ance producer. The export volume of color TVs, refrigerators, washing machines and mobile phones in 2007 reached US$57.9 billion, and constitutes a main source of China’s large trade surplus. Export growth has made great contributions to China’s economic development in the past decades, but is dwindling under the current economic crisis. Popularizing home electri-cal appliances in rural areas, however, offsets the falling export

volume, according to Zeng Xiao’an. But this means nothing to those rural dwellers that live on income from manual works in the cities.

The huge market potential of China’s rural areas has fo-cused the attention of both domestic and overseas home electri-cal appliance companies. Haier produces wider voltage water-proof TV sets to meet the demands of rural consumers, and Siemens has also invested heavily in promoting its products in the countryside. Companies that win the rural market will be the market leaders of the future, according to vice director of China Home Electrical Appliance Association Jiang Feng.

Commercial concerns have neglected the rural market in the past owing to the sluggish countryside economy. Chen Xi-wen, deputy director of the Office of Central Rural Work Lead-ing Group, believes that whenever a crisis such as the present global financial crisis hits, the focus of Chinese business shifts to the rural market. And as President Hu Jintao stated: “We need to increase domestic demand and take diverse measures to boost the economy and counter the risks of global economy.”

The 13 percent subsidy, however, is a paltry saving for most low-income farmers. The cheapest refrigerator costs RMB 1,090, so even with the RMB 141 subsidy there is still a balance of RMB 949 to pay, which no small sum is taking into account that the average annual income of a rural family in 2007 was RMB 10,000, according to Ministry of Agriculture statistics. Also, “Few young people are willing to do farm work now be-cause they can earn more by doing manual labor in the city,” according to a publicity department official in Linyi, Shandong Province.

A large proportion of rural surplus labor force moved to cities in the 1990s. But the countryside is now regarded as a huge consumption market just waiting to be exploited. Farm-ers, however, are thrifty by nature. Shi Yunguo, for example, regards spending RMB 1,000 on a TV as a luxury, with or without the subsidy. Farmers, however, are thrifty by nature. Farmers see no great need for home electrical appliance, and would think very hard before making such a purchase. As Wang Yiguo from Hunan Province, who does manual work in Beijing to earn his daughter's tuition fee, says, “It’s good to have a sub-sidy when buying a refrigerator, but we just don’t need it.”

Globalization? A Definite road to go?A’senior expert in M&A told China’s Foreign Trade, “Country

side is not a easy way to go by ambitious home appliance enter-prises, A better way for them is to M&A in bigger platform - com-peting in global market. It is a definite road for them to go.”

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CITY

Huangshan 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

(Yellow 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.

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

the Magical Mountain

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exuberance of plant life covers the valleys and peaks with a green blanket. The green trees and ivy mingle to form natural pavilions where you can sit and refresh yourself while enjoying the beautiful scenery with a cooling breeze to sooth you.

Dawn in summer is most splendid as the rising sun lights the sky and the peaks and the plants and the whole world takes on a brilliant glow. After a storm, Mt. Huangshan becomes a world of water. Numerous streams and waterfalls compose an excit i ng and v igorous symphony.

The Sea of Clouds during this season is not as vast as during autumn or winter but it revels in its brightness. If you are really lucky you will see a vivid rainbow flying over two peaks. Sunset is no less enchanting than sunrise. Mt. Huangshan in summer is the best resort in which to escape high temperatures of southern China.

● Best times and locations from which to see the sunrise on Mt. Huangshan

The best east-facing viewing areas are Dawn Pavilion, Refreshing Platform, Lion Peak, Rosy Clouds Peak, Bright Peak Summit, Jade Screen Peak, Lotus Blossom Peak and Heavenly Capital Peak;

Best times to view a sunrise:Spring — 05:30-06:00Summer — 04:40-05:10Fall — 04:50-05:20Winter — 05:30-06:00

● Beihai Scenic AreaWhen 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 cl imb to the top of Peak Sleeping Cloud or Peak Start-to-Believe for a breathtaking outlook, you surely take a picture of Bamboo-Shoot

Peak. If the top of Peak Sleeping Cloud or Peak Start-to-Believe is too crowded or dangerous for you, you have a perfect alternate: keep walking a few minutes down to Shisungang where you can enjoy a quite and wide spectacle: deep valleys, a cluster of slim peaks, a stone resembling a person with a cap and in a backpack, Peak Goddess of Mercy and Peak Buddha’s Palm.

At Dawn-Light Pavilion, you can see a g roup of interest ing rock. On Refreshing Terrace you can view a fan-shaped pine cling to the cliff beneath the terrace, a nice crowd of pines, a column of stone looking like a person with a pig head, Peak Rooster and Peak Rise surrounding you. Before you reach the top, there is Millennium Bell everyone can hit it for fun, but every hit will cost you RMB 2.

On the top of Lion Peak, you can see a rock resembling monkey on the flat top of another hill, that’s very famous rock: A Monkey gazing at the sea when there is a sea of cloud, or A Monkey gazing Taiping County when there is no cloud and mist.

● Hot springsTo be able to refresh yourself in the

hot springs on Mt. Huangshan must be one of the best ways of enjoyment and relaxation. Running out of the Purple Peak of 850 meters (2, 789 feet), the hot spring in Mt. Huangshan is the first stop following the entrance. Legend has it that Huang Di, the ancestor of the Chinese nat ion , bathed here 49 days before he ascended to heaven and became immortal.

Tips: ◙ July and August are among the

peak seasons therefore reservation is a must.

◙ It is wise to bring a rainproof jacket with you as the strong wind on the mountain renders an umbrella all but useless and even dangerous.

◙ Do not cl imb the mountain during thunderstorm.

Tips◙ Hot spring is not suitable for

everyone. If you suffer from high blood pressure or heart diseases, it would be wise to consult your doctor first.

◙ Do not bathe in the hot spring if you do not feel very well or when you are hungry.

◙ Leave the hot spring whenever you feel uncomfortable.

In addition to the spectacles we have mentioned there are three large waterfalls that are well worth a visit. These are Renzi (like the Chinese character for human being) Waterfall, the Baizhang (100 zhang, over 1,093feet) Spring and the Nine-dragon Waterfall.

Also, Mt. Huangshan is an ideal environment for wild animals and plants. The distribution of the animals and plants changes with elevation. Flowers bloom as though in all the four seasons due to the change in climatic conditions as you proceed up the mountain. So if you are fond of animals and plants, be prepared to encounter some precious ones here.

Huizhou CultureHuangshan City is not only noted

for its charming natural landscapes but also celebrated for its ancient history and culture. In fact, Huangshan City is a national park and a museum where you can enjoy natural beauty and explore its centuries-old history and glorious culture.

Hangshan City has a h istory of over 2,200 years. Its two oldest counties, Shexian and Yixian, were established during Qing Dynasty when the system of prefecture and county took shape. Huangshan City was formerly called Xin’an Prefecture, and later Huizhou Prefecture until it got current name in 1987.

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Situated in a remote and picturesque mountainous area, Huizhou escaped many wars and battles throughout history. Refugees from the Central Plains came into this area and brought with them the Han culture starting from the Sui and Tang Dynasties. Many refugees were famous for their achievements in art, medicine, architecture and craftsmanship. Under their inf luences, Huizhou has become known as a remarkable place for producing great scholars, painters, artists and merchants.

The contributions of these talented and industrious people, together with the 2200-year history, have brought about the glorious and magnificent Huizhou Culture (also known as Xin’an Culture) which can be represented by Xin’an Philosophy, Xin’an Medicine School, Xin’an Painting School, Huizhou School of Woodblock, Huizhou Seal School, Huizhou Commerce, Huizhou Opera, Huizhou Cuisine, Huizhou Sculpture and Huizhou Style Architecture.

This culture, or iginated mainly from the Central Plains (an area which comprises the middle and lower reaches of the Huanghe River) and integrated

with traces of Shan’yue Culture, is an important part of Chinese Civilization. As a matter of fact, Huizhou Culture has become one of the three main fields of the Chinese Culture (Han) Study, the other two being Dunhuang and Tibetan Cultures. This is why more and more scholars form home and abroad turn their attention to Huizhou Culture, and many visitors have come to this area to examine the historical sites and relics.

So far, more than 4,900 sites and relics were found, among which, 57 sites are listed as key units under the state or provincial protection. The best known sites are the Qiankou Ancient Residence (in Huizhou District), Xugou Memorial Archway and Tangyue Archway Group (in Shexian County), Xidi Village and Hongcun Village (in Yixian County), and etc. The classic, elegant design of the buildings and the ingenious, magnificent layout of the landscapes are outstanding in its own way.

● Tunxi Ancient Street Tunxi Ancient Street is situated in

the center of Tunxi District, the location of Huangshan City Government.

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The street with centuries-old history dates back to the Song Dynasty (960-1279). Emperor Huizong (1082-1135) moved his seat of government to Lin’an (now is Hangzhou), when many architects and work men were conscr ipted to construct the new capital. After returning to their hometown, they imitated the structural style to build architecture along the street, so Tunxi Ancient Street was formed.

The street is paved with maroon f lagstones with a total length of 1,273 meters , of which 895meters is the pedestrian commercial street. Shops standing on both sides are generally of two or three f loors, which feature the local Anhui style of stone base, brick construction and tile roof.

There are two well-known museums in the street. One is the Tunxi Museum with a display of furniture from the Ming and Qing dynasties on the first f loor and an exhibition of calligraphy, paintings and china upstairs. The other is Wancuilou, a four-storey structure which is the first private museum of ancient architectural style. Famous ink stones and the four treasures of study, writing

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 r ich in Chinese culture with comparatively lower prices.

● Xidi and Hongcun, the ancient villages

Located in Yixian County, Xidi and Hongcun Ancient Villages were listed as World Heritage Sites by UNESCO in 2000. These two villages are the most representative local-style residences in southern Anhui Province.

Construction of Xidi Village began during the Northern Song Dynasty (960-1127). So far, it has a history of over 900 years. The village is famed as being the “Ming and Qing Dynasty Local Residence Museum”. It has about 124 ancient residences and three ancestral halls, including an archway, Linyun Pavilion, Eastern and Western Gardens, Ruiyu Courtyard, Taoli Garden, Da Fu Grand House and Lvfu Hall.

The three carving styles including those on stones, bricks and wood are the most renowned. Tourists can appreciate these exquisite carvings on door frames, lattice walls, columns and beams in the halls. The birds, flowers, grass and figures on them are vividly presented. Both the Ming and Qing Dynasty carvings display poise and refinement.

Encircled by green hills, two streams flow through the village from north and east converging at Huiyuan Bridge. The village has two main streets and about 99 lanes. All the streets and lanes are paved

with cobbles or black stones. Lying about 10 kilometers (6 miles)

northeast of Yixian County, Hongcun Village enjoys the reputation of “a village in the beautiful Chinese picture” because of its location at high altitude and being shrouded by clouds and mist. It has about 137 Ming and Qing style residences.

Built with pink walls and black tiles, all the residences are better arranged. Among them, the Chengzhi Hall is the most representative and is praised as the “Folk Imperial Palace”. Numerous varieties of f igures and pat terns are carved on the columns, beams and door frames and are gilded with gold. It is said that about five kilograms (11 pounds) gold had been used in gilding the wood carvings during the construction of the house.

Hui cuisine Hui cuisine with more than a hundred

year’s history is one of the Eight Major Cuisines of China. Hui, unlike other cuisines, features wild game. Cooking methods feature braising in soy sauce, stewing and steaming. Originating in Shexian County, Huangshan City, Hui Cuisine is strict about choosing materials, and ma k i ng su re of f re sh ness and tenderness. C

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When Premier Wen Jiabao set the annual economic growth at 8 percent for 2009 in his government report early this March, three driving forces be-hind the national economy took the corresponding task of achieving this growth onto their shoulders. In March, at a regularly held conference for

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

China’s Export, Still Tough Road Ahead

Yang Wei

However, after watching the con-stantly shrinking trade volume in year-on-year data for the first four months this year (See Table 1 & Chart 1), the earlier conservative goal of a 1.2 percentage points contribution from exports seems to be overly optimistic. As a matter of fact, Zhang himself secretly changed his distribution chart just one month later. By the end of April, Zhang told the press that, the contribution made from foreign trade to national GDP growth would have to be adjusted to 0.8 percentage point, a figure which would still be a tough mark to meet.

“3.2 percentage points relies on con-sumption, (which remains unchanged). For investment, a full 4 percentage points will be expected. Exports will be respon-sible for a 0.8 percentage point contribu-tion to annual economic growth, which means China plans to see net growth of about 30 billion dollars over 2008 by the end of this year.” Zhang said.

According to Zhang’s explanation, the consumption ability of a country is the showcase of its national economy. Under the context of the world economic recession, China’s central government has undertaken a series of large actions to stimulate consumption and ensure a stable increase, which is already an achievement in itself, if can be realized.

Investment is what all levels of Chi-nese governments are encouraged to do, all of which are expected to perform better than initial expectations. Up until April 1 of this year, the Central govern-ment already invested 44 percent of the amount in its original plan. Total invest-ment will actually be more than the RMB 4 trillion stimulus that was announced last November. Loan amounts from banks increased sharply this year, stimulated by the proactive fiscal policy and moderately easy monetary policy.

“We can see that in March alone the national loans from banks were over RMB 4 trillion. History also tells that after the Asia financial crisis, there was a period during which investment played a major role in economic growth, causing it to leap forward.” Zhang argued.

In this way, “exports are still under great pressure, shouldering the task of 0.8 percentage point growth, and that is what our government, including CCPIT, is making a great effort to do at this mo-ment.” Zhang said.

Before, the traditional key export markets for China were mainly North America and Europe, however, these big mature markets with high consumption are also the ones that suffered the most in the financial crisis. “Now, we are exploring more markets in Africa, the Middle-East, South America, South Asia, and Eastern Europe. Those emerging markets have a lot of potential, and it’s CCPIT’s goal to bring over 1,000 Chinese enterprises there,

Month Item Absolute Value Increase ±%

Jan.Total Import and Export Value 141.79 -29.1

Total Export Value 90.39 -17.5Total Import Value 51.41 -43.1

Feb.Total Import and Export Value 124.93 -25.0

Total Export Value 64.86 -25.7Total Import Value 60.07 -24.1

Mar.Total Import and Export Value 162.02 -20.9

Total Export Value 90.29 -17.1Total Import Value 71.73 -25.1

Apr.Total Import and Export Value 170.73 -22.8

Total Export Value 91.94 -22.6Total Import Value 78.80 -23.0

Table 1 Brief on China’s import and export from Jan. to Apr. 2009Unit: Billion USD

(Data source: China Customs)

(Data source: China Customs)

Chart 1 Monthly comparison of China’s export value between 2008 & 2009Unit: Billion USD

Zhang Wei, vice president of CCPIT.

Expor t value in 2008

Expor t value in 2009

140

120

100

80

60

40

20

10Jan. Feb. Mar. Apr.

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to promote the concept of Chinese brands, and also develop a mutual relationship and understanding for both sides.”

According to its annual plan, this year CCPIT has an appetite for more frequent promotion abroad. (See Table 2) The busy schedule proves that Zhang’s more opti-mistic of fulfilling China’s export target in another way.

“However, we can look at the current financial crisis as a chance for China to rest and adjust its industrial frame and structure,” expressed Zhang. “It also teaches us a lesson that China can’t repeat the way of walking by relying on just one leg.” According to Zhang, the industrial revitalization plan from the State Council also shows the trends and determination of industrial construction adjustment from the government side. “In my view, the chemical industry will grow from the revitalization plan, but it will have little effect on textiles and electronics… those areas that are already export-oriented sec-tors.” Zhang explained.

Outbound investment is also a part of international trade. Zhang identified three main factors that will make the for-eign investment environment tougher for Chinese enterprises: declining demand and price, shrinking international as-sets, and a lack of confidence. The global financial crisis has brought great suffer-ing to China’s real economy, as well as a round of cleansing.

Time Place Event

April Hangzhou, Zheji-ang Province The 3rd China-Arab Business Conference

April Holland, Spain, Belgium The China-Europe Trade Fair

May Turkey, Syria and Iran The China-Middle East Trade Fair

May Dalian, Liaoning Province The China International Trade Fair

June United States and CanadaThe China-U.S. Trade and Investment Co-operation Forum and the China-Canada Trade and Investment Cooperation Forum

June Xinjiang ProvinceThe 2nd Conference of Economic and Business Cooperation between Chi-na and Middle Asian Countries

June Kunming, Yun-nan Province

The 4th Conference of Economic and Business Co-operation between China and South Asian Countries

August BrazilThe 5th Conference of Economic and Business Cooperation between China and Portuguese-speaking Countries

October Nanning Guangxi Province

The 6th China-ASEAN Trade and In-vestment Cooperation Summit

October Nanjing, Jiangsu Province The China International Trade Fair

October Egypt The 3rd China-Africa Business Conference

November Columbia The 3rd China-Latin American Business Summit

Table 2 “China Products Promotion Programs” Agenda by CCPIT in 2009

“We encourage strong enterprises to go to abroad, not only to sell products but also to invest in other countries, especially those in the mining and natural resources sectors. Through M&A and foreign investment, China will learn more about advanced manage-ment technology, and also upgrade its own national industries in return,” Zhang said. “But I don’t agree with the practice of ‘bottom feeding’, despite the current crisis. Any time you go abroad to invest, there is risk of failure: you have to face all kinds of problems of an unfamiliar environment, laws, policies, the language, customs, or business style. Do full research before moving. There is always much to learn and cooperate,” he added. C

The pain of a decade agoWhat a history! When the Asian Finan-

cial Crisis broke out in July 1997, many Asia countries suffered heavily from the financial and economic meltdown. Some Asia coun-tries, such as South Korea, Malaysia and In-donesia, resorted to IMF for help and carried out a series of rescue packages featured by tough fiscal and monetary policies under the guidance of IMF whose kernel principles are neo-liberal economic principles and whose reasoning was that these tightening steps would restore confidence in the fiscal solven-cy, penalize insolvent companies, and protect currency values. They are market-oriented!

Luo Yang

However, when these countr ies cut back on government spending to reduce deficits, allowed in-solvent banks and financial institutions to fail, and aggressively raised interest rates as IMF said, they found out that the economies hadn’t recovered as IMF suggested. Even the presi-dent of Indonesia, Suharto, who was in power for 30 years, was forced to step down in the wake of widespread rioting that followed economic crisis in May 1998. What a shame! The Asia countries suffered not only the pain of economic crisis, but also the pain of IMF.

After the Asian Financial Crisis, IMF was under fire for its principles and policies. As country after country fell into crisis, many scholars argued that when the country was in a recession, the traditional Keynesian response was to increase government spending, prop up major companies, and lower interest rates. The reason was that by stimulating the economy and staving off recession, governments could restore confidence while prevent-ing economic and financial loss. So, for most of the countries involved, IMF intervention

IMF: More Funding, More Reforming

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has been on the wrong road. The role of the IMF was so controversial during the crisis that many scholars called the Asian finan-cial crisis the IMF crisis.

Put aside the pain of Asian financial crisis, and many commentators also criti-cized the IMF for encouraging the emerging economies down the path of fast capitalism, that was fast liberalization of the financial sector; maintenance of high domestic inter-est rates to attract portfolio investment and bank capital; and pegging of the national currency to the dollar to reassure foreign investors against currency risk.

As we know, the primary mission of the IMF is to provide financial assistance to countries that experience serious financial and economic difficulties. But, during the periods before the sub-prime crisis broke out in the July 2007, IMF hadn’t much to do without the trust of emerging economies because of the pain of Asian Financial Crisis and hadn’t resource to fulfill the re-sponsibility of promoting the global finan-cial stability without the trust of developed economies who contempt the role and ca-pacity of IMF in their own problems. And with the evolution of the sub-prime crisis and many countries fell into dire straits in 2008, people found that IMF could not help those countries as it did in the history and seemed to be sliding towards irrelevance in the current crisis.

The IMF is backActually, IMF, faced with a shortfall in

revenue, was forced to sell part of the gold reserves in 2008. On April 27, 2008, the board of IMF decided to close a projected US$400 million budget deficit over the next few years. The budget proposal includes sharp spending cuts of US$100 million until 2011 that will include up to 380 staff dismissals. IMF needed a new niche in the new ear. Then the current crisis maybe a chance to change!

When the leaders of G20 met in Washington last No-vember, they decided that IMF would play a more important role in the financial crisis and would talk about it in details in the future. So, when the G20 leaders in London Summit this April decided that the IMF should both have more resources and play a broader role in the world economy than in the past. Dominique Strauss-Kahn, the managing director of IMF, could barely contain his delight after the communiqué of G20. Yes, IMF needs much more resources and these bosses agreed to do that! As we know, some countries, especially the Eastern Europe countries, such as Iceland, Romania, Tur-key and Poland, need more resources than IMF’s quota. So, when the leaders of G20 reached a consensus that they would increase the fund’s resources by US$500 billion to US$750 billion and allow IMF to issue US$250 billion-worth of its own quasi-currency to ease liquidity crisis in emerging and developing economies, Dominique Strauss-Kahn said it was a great success of IMF in the G20 London Summit. The G20 leaders also expect IMF to ensure candid, even-handed, and independent surveillance of big economies and their banks, of the impact of their policies on others and of risks facing the global economy. In the new era, the IMF’s role in helping to combat the global economic crisis and reinforce the finan-

cial system had been reaffirmed in a variety of ways. The main ways include economic forecaster, policy advisor, economic surveillance, global lender, provider of help to low-income countries and boosting world liquidity. The crisis gave IMF opportunity of re-birth. Yes, the IMF is back!

More reforming: mission impossible?Now, after the leaders agreed to give more resources to IMF, and what else? It isn’t the

whole story! As we know, the balance of power in the IMF is reflected in the votes of its member countries. But the governance and quota of IMF was created fifty years ago and reflected the structure of economic and political powers fifty years ago. The most impor-tant and distinct thing in the past fifty years is that the developing and emerging countries play an increasing part in the world and should have more voice in international affairs. However, these developments haven’t reflected the governance of IMF. That’s the serious and difficult problem faced by IMF and the developing economies. The more resource to IMF from developing economies, the bigger voice of developing economies should have in IMF. So, it is an urgent task of reforming of IMF to reflect changing global realities, espe-cially in a time of crisis.

Before the leaders of G20 gathered in London in April, Zhou Xiaochuan, governor of People’s Bank of China, published the paper named Reform the International Monetary System. These are the first big proposals for international monetary reform from China. In his paper, Mr. Zhou thought that the outbreak of the current crisis and its spillover to the entire world reflected the inherent vulnerabilities and systemic risks in the existing inter-national monetary system. So, reforming of IMF is a must if we want to get out of the crisis and keep the financial stability in the future! What the ways ahead? Zhou put forward the holistic approach to reform IMF and create a new international reserve currency that is disconnected from individual nations and is controlled by IMF. And in this way, the inher-ent deficiencies caused by using credit-based national currencies will be removed forever. And IMF will play a much more important role to enhance the international community’s ability to address the crisis and maintain the stability of the international monetary and financial system. The views of Zhou reflected the thoughts of many developing and emerg-ing countries which have little voice in IMF and the international financial affairs. Several other Asian countries, Brazil and Russia have expressed support for Zhou’s ideas. But, the US and several other governments have been quick to reject them. Ben S. Bernanke, the governor of Federal Reserve, reaffirmed their confidence in the central global role of the dollar in the Federal Reserve Bank of Atlanta 2009 Financial Markets Conference in May 11, 2009.

Yes, let anyone to loose his hand is difficult. A more ambitious quota reform, to bring about a significant change in power, will involve arduous negotiations: larger shares of the votes for big emerging economies will mean smaller shares for rich ones. Though difficult, we should go forward if IMF wants to fulfill its missions and the lesser part of USA and Europe and the larger of China and Russia and so on is the only right way ahead. If the totally revamping of IMF is not possible now, in my opinion, the gradualism reforming should on the top agenda.

(The views expressed here are those of the author. Author: from Haikou central branch, People’s Bank of China)

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I. Project NameWulidun Coal Chemical Industry Project of Fugu CountyII. Project Implementation Agency Shaaxi Coal Industry Group and Jinliyua GroupIII. Project DescriptionFugu County has rich coal resources and the storage area is 1359 km2 and the veri-fied reserve is 20 billion tons. In recent years, Fugu County focuses on the deep processing of raw coal in coal resource. The project is planned to build 1.5 million t/y carbinol, 600,000 t/y MTP in Wuli-dun, Fugu County. Industry methanol is a basic organic chemical industry raw material and it is used widely. Except for using as a good solvent, it mainly is used in synthetic fibre, formaldehyde, plastics, medicine, dyestuff, synthetic protein etc. Propylene is the second raw material for petrochemical industry and it has long product chain. The application field is wide and it has rich byproducts. IV. Total Investment and Coopera-tion FormTotal investment of the project is RMB 2 billion. Cooperation form is joint venture or cooperation. The investment ratio shall be negotiated by both parties. V. Anticipation of Market and Anal-ysis of Investment ReturnOlefin category products have broad mar-ket demand and great economic benefit potential. In 2010, the methanol con-sumption is estimated to be 39 million tons in 2010, ethylene demand is about 9.2 million tons, and propylene demand is 10.54 million tons. The resource alloca-tion is good and gasoline, liquefied gas, fuel gas and other by products can be the supplement of related products of Fugu County. Developing this core technology is an important measure for Shaanxi to develop new-type coal chemical industry

Projects in Western CHINA nvestmentI

Energy Sources and Chemical Industry Sector

and build Shanbei energy source chemical industry; on the other hand it has active meaning to overcome poverty and speed up Fugu County economic development. Contact Person: Zhang YinbinTelephone: 0912-8713729Fax: 0912-8712810E-mail: fgzsj@sina.comAddress: Room 409, Government Building, Fugu County Committee I. Project Name60000 t/y1, 4 Butanediol Project in Shen-mu CountyII. Project Implementation Agency Shaanxi Delin Chemical Industry Co., Ltd. III. Project Description 1,4 butanediol is an important basic chemical organic raw material for chemi-cal industry and it can derive a series of fine chemical industry products with high extra-value. The main products are tetra-hydrofuran, γ- butyrolactone, engineering plastics, polyurethane. In addition, it can be used as additive in pharmaceutical in-dustry and chemical industry concerned with products for daily use. The project is planned to build a 1, 4 Butanediol produc-tion line. The methanol, calcium carbide and other raw material can obtain in local area, therefore, the cost is low and its de-velopment prospect is great. IV. Total Investment and Coopera-tion FormTotal investment of the project is RMB 1.77 billion. Cooperation form: joint ven-ture or cooperation.V. Anticipation of Market and Anal-ysis of Investment Return1, 4 butanediol in world and home mar-ket is very bright. It is estimated that 1, 4 butanediol demand in 2010 is 440,000 tons and the market gap is great.. After the project is completed, the average sales

income is RMB 1.21 billion, investment profit rate is 16.85% and the investment recovery period is 7 years. Contact Person: Wang ShipingTelephone: 0912-8331271 8684001Fax: 0912-8332487Postal Code: 719300

I. Project Name60,000 t/y Polyformaldehyde Project in Shenfu Economic Development ZoneII. Project Implementation Agency Shenfu Economic Development ZoneIII. Project Description Polyformaldehyde, featuring low propor-tion, high strength, anti-erosion and ex-cellent lubricate and power performance, is an important thermal plasticity. It can be widely used in such industry of auto-mobile, machinery, chemical industry, electrical appliance, instrument, daily use chemical industrial products. The project mainly uses methanol as raw material to produce polyformaldehyde. The project is planned to produce 60,000 tons poly-formaldehyde resin a year. The construc-tion period is 2 years. IV. Total Investment and Coopera-tion FormTotal investment of the project is RMB 1 billion. Cooperation form: sole invest-ment, joint venture or cooperation.V. Anticipation of Market and Anal-ysis of Investment ReturnPolyformaldehyde resin consumption of China mainly distributes in electronics, electric appliance, and daily use product fields. In future 10 years, polyformalde-hyde resin demand of our country still increasing at a high speed. It is estimated to be 450,000 tons in 2015 years. After completion of the project, annual sales income is RMB 520 million, profit and tax RMB 206.5 million, total profit RMB 158.7 million, investment profit

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rate is 32.49% and profit and tax rate of investment is 24.97%. Contact Person: Li XiaoweiTelephone: 0912-8493881Fax: 0912-8493881Address: Shenmu County Jinjie Indus-try Park, Shaanxi ProvincePostal Code: 719319E-mail: gwhxmb@sohu.com I. Project Name20,000 t/y Polyformaldehyde Project in Yulin Economic Development ZoneII. Project Implementing AgencyYulin Economic Development Zone Con-struction Co., Ltd.III. Project DescriptionPolyformaldehyde is engineering plastics with high crystalline and its strength, hardness are similar to metal. It can be widely used in such industry of electron-ics, electric appliance, machinery, au-tomobile, building material, agriculture and etc. It has broad market prospect. The project is planned to adopt polyformalde-hyde technology and build a production line with annual capacity of 20,000 tons. The feasibility study report of the project is completed. At present, the environmen-tal appraisal, safety appraisal and report for approval are under way. IV. Total Investment and Coopera-tion FormTotal investment of the project is RMB 608 million. Cooperation form: joint ven-ture, cooperation or financing.V. Anticipation of Market and Anal-ysis of Investment ReturnAfter the project is completed and put into production, the estimated annual sales income is RMB 290 million, annual cost is RMB 160 million, annual profit and tax is RMB 14.19 million. The investment recovery period (after tax) is 6.75 years. Contact Person: Gao ShengyanTelephone: 0912-3899509Fax: 0912-3899509Address: Administration Committee of Yulin Economic Development Zone, Shaanxi ProvincePostal Code: 719000 I. Project Name 20,000 t/y Paraformaldehyde Project in Shenfu Economic Development ZoneII. Project Implementing Agency Shenfu Economic Development ZoneIII. Project DescriptionParaformaldehyde is white burnable crystal powder and it is mainly used in production of formaldehyde resin, dope of automobile industry, raw material of pharmaceutical industry and sanitize in ward, clothes, beddings etc. it also can be used as raw material of fumigant, insecti-cide, antiseptic and herbicide. The project is planned to build paraformaldehyde production line with annual capacity of 20,000 tons and the construction period is

2 years. IV. Total Investment and Coopera-tion FormTotal investment of the project is RMB 185.61 million. Cooperation form: sole investment, joint venture or cooperationV. Anticipation of Market and Anal-ysis of Investment ReturnIn China, paraformaldehyde is mainly used in production of glyphosate, bu-tachlor and other herbicide. It also can be used in dope, medicine, synthetic resin and paper making. Paraformaldehyde de-mand in pesticide, medicine and automo-bile dope field is estimated to be 150,000 tons in 2010. After the project is complet-ed and put into production, the profit rate of investment is 13.1%, internal rate of return is 13.1% (after tax), the investment recovery period is 7.8 years (including construction period).Contact Person: Li XiaoweiTelephone: 0912-8493881Fax: 0912-8493881Address: Shenmu County Jinjie Indus-try Park, Shaanxi ProvincePostal Code: 719319E-mail: gwhxmb@sohu.comPostal Code: 719319 I. Project Name12,000 t/y Methyl Carbonate Project in Yulin Economic Development ZoneII. Project Implementation AgencyYulin Economic Development Zone Con-struction Co., Ltd.III. Project Description Methyl Carbonate is widely used in medi-cine, herbicide, composite material, dye, lubricate additive, foodstuff enhancer, electronic chemicals and other f ields and it is called new foundation stone of modern organic compound. As a gasoline additive, methyl carbonate can improve octane number and oxygen content and enhance its antiknock property. Methyl Carbonate also can be used as additive of cleanser, surface active agent and soften-ing agent. The project is planned build methyl carbonate production line with annual output of 120,000 tons in Yulin Economic Development Zone. Now the prophase project is carrying outIV. Total Investment and Coopera-tion FormTotal investment of the project is RMB 96.3 million. Cooperation form: joint ven-ture, cooperation or financingV. Anticipation of Market and Anal-ysis of Investment ReturnIn 2010, the apparent consumption of methyl carbonate of our country is esti-mated to exceed 82,000 tons, net export volume will reach 28000 tons. The mar-ket prospect is good. After the project is completed and put into production, the es-timated sales income is RMB 105 million and annual profit and tax is RMB 52.28 million, annual profit RMB 27.08 million,

profit rate of investment is 28.37%. The internal rate of return of the whole invest-ment (after tax) is 20.7%.Contact Person: Gao ShengyanTelephone: 0912-3899509Fax: 0912-3899509E-mail: ylgsy0312@163.com Address: Administration Committee of Yulin Economic Development Zone, Shaanxi ProvincePostal Code: 719000 I. Project Name 50,000 t/y Granular Calcium Cyanamide and 5000 t/y Dicyandiamide Project in Shenmu CountyII. Project Implementation AgencyShenmu County Economic Development BureauIII. Project Description Calcium cyanamide is a kind of new envi-ronmental protection medicine which has such functions of insect disinfestations, sterilization, herbicide, soil improvement, etc. Granular calcium cyanamide is a kind of multi-functional high-grade agricultural fertilizer. Dicyandiamide is separated into common dicyandiamide and electric dicy-andiamide and it can be used I medicine, pesticide, resin and new-typed electric chemicals. The project is planned to build granular calcium cyanamide and dicyan-diamide production line. It can produce 50,000 tons of granular calcium cyana-mide and 5000 tons of dicyandiamide a year with over one million tons of calcium carbide produced by 32 calcium carbide manufacturers as raw materials. IV. Total Investment and Coopera-tion FormTotal investment of the project is RMB 79.461 million including fixed asset in-vestment of RMB 69.4981 million and fluid capital of RMB 9.963 million. Coop-eration form: sole investment.V. Anticipation of Market and Anal-ysis of Investment ReturnWith the increase of calcium cyanamide and dicyandiamide consumption in en-vironmental products, the market space becomes larger and larger. The total global output of calcium cyanamide is not more than 500,000 ton, while the total market demand is over 600,000 tons. The global dicyandiamide demand per year is about 80,000 tons-100,000 tons and it is estimated to be 120,000-140,000 tons in 2010. But the world dicyandiamide pro-duction capacity is not more than 80,000 tons. After the project is completed, it can realize annual average sales income of RMB 268.308 million, profit and tax of RMB 52.85 million. The profit rate of investment is 21.9% and the investment recovery period is 3.5 years. Contact Person: Wang ShipingTelephone: 0912-8331271 8684001Fax: 0912-8332487Postal Code: 719300

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I. The future of outbound M&A for Chinese enterprises

The backgroundAs we read in the press lately, Chi-

na’s trade surplus and foreign-exchange reserves have fuelled its growing over-seas M&A activities over the last sev-eral years. Most commentators believe that this outbound activity will continue to increase. Some recent reports sug-gest, however, that since the current financial crisis began, there has been a slow down in China outbound M&A activities, with a 68% decrease in deal volume YTD 2008-9. Although total deal value has stayed roughly the same, 67% of this year’s outbound deals have been focused on Asia.

It is likely that this decrease in ac-tivity is due primarily to concerns over the health of the global economy and the impact that will have on the future value of today’s investment opportuni-ties rather than diff iculty raising f i-nancing as has been the case for other buyers. Concerns regarding the health of the global economy have increased the economic risk in any investment t ransact ion and prompted concerns over a return to an era of economically and politically motivated protection-ism.

Despite these concerns, outbound resource-d r iven commercial act iv-ity overseas appears to remain a high priority in China as evidenced by the recent announcement of several new deals. This activity is motivated in part by a desire to secure access to required resources but also by the opportunities presented by the financial state of glob-al resources companies that are over leveraged in a bad economy. Also, Chi-nese economic policy has recently in-volved an increased economic engage-

Then And Now

Mark Uhrynuk

ment with less developed countr ies, particularly those rich in resources and commodities, and this trend is likely to continue.

But, there remain challenges. In the recent past, Chinese investors paid premiums to win deals which now look like bad deals in today’s markets. There is increased investors’ wariness and, when layered onto the current global economic malaise, enhanced concerns regarding valuation and funding risks, economic protectionism and potential political opposition.

So what does this mean?If the financial crisis worsens there

is a real chance that domest ic pres-sures in certain countries will lead to an increase in protectionism. This has already been seen in the United States in the current financial crisis with bail-outs favouring domestic companies and products, in particularly in the automo-tive and steel industries.

Smaller acquisitions or small mi-nority stakes are less likely to be met with fierce opposition; however, any ac-quisition where the Chinese state owns a stake could be met with opposition or challenges in certain jurisdictions, such as the United States. In the near term, Chinese overseas acquisitions are likely to be small minority stakes in large businesses, or acquisitions below US$500 million. This is largely due to economic risk and uncertainty regard-ing regulatory and political barriers, especially for State Owned Enterprises (SOEs).

Although the recently announced revisions to China’s approval process for overseas investments may streamline and speed the process for smaller deals (particularly investments of less than US$10 million by Small and Medium Sized Enterprises (SMEs), there also

will be strategic investments by SOEs to defend Chinese interests, particularly in resources and commodities sectors. Expect an increase in activity by Chi-nese companies that have a large share of what will be the largest market in the world but that are late into the global game and competing (or expected to compete) with large established multi-national corporations.

In the medium to longer term, as China grows further and Chinese busi-nesses becomes more established and confident on the world stage, more of the larger Chinese companies are likely to attempt larger overseas acquisitions.

II. Target sectors and countries for Chinese outbound investment

What and where?The desire to secure access to natu-

ral resources and commodities and Chi-na’s policy towards less developed coun-tries has helped (and is likely to contin-ue to help) drive activity towards those developing nations that have ownership or control over their natural resources - in regions such as Africa, Central Asia, South America. A st rong RMB will make investments appear even cheaper in certain resource rich countries such as Canada and Australia. Depending on the reaction of the Australian regulators to pending investments by Chinese en-terprises, Canada may be a better short term play: resource r ich, more open government and a devalued Canadian dollar. Outside of the resource sector, Chinese companies with dominance at home will look for new markets and for opportunities to acquire new brands and technologies. Again, a strong RMB will make certain business appear more af-fordable in the branded goods and tech-nology sectors in certain countries such as the UK.

— How The Global Financial Crisis Will Affect Chinese Outbound Investment

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China’s f i r s t s top for outbound investment is likely to be other Asian countries, but Europe remains an op-portunity. Although, in the past, there has been concern expressed about Eu-ropean protectionism (which may have put certain Chinese companies off from invest ing in Europe - but may have saved them money), Europe appears to be more welcoming now.

The United States also remains the key market for many Chinese enterprises with “global” ambitions. There still remain, however, regulatory and political barriers to making acquisitions in the US, particu-larly by SOEs. While recent changes to the U.S. foreign investment regime have sought to increase transparency and pro-vide guidance to non-U.S. investors, there is a strong foreign investment review pro-cess in place and uncertainty surrounding the economic crisis and a new administra-tion. On top of that, many in China still have not forgotten the Unocal experience of 2005. In any event, the State may have to dilute or divest its stakes in SOEs if sig-nificant acquisitions in the United States by SOEs are to succeed.

A brief look at the U.S. foreign investment rules

One of the reasons for the lack of U.S.-focused M&A activities by Chi-nese companies recently is the risk as-sociated with the regulatory approval by the Committee on Foreign Investment in the United States (“CFIUS”), an inter-agency committee authorized to review foreign acquisitions that could result in control of a U.S. business by a foreign person on the grounds of “national se-curity”. Such regulatory hurdles were cited as the pr imary reasons for the withdrawal by the China National Off-shore Oil Corporation of its takeover bid for Unocal Corporation in 2005 and the failed attempt by Huawei Technolo-gies and its U.S. partner, Bain Capital, to acquire 3Com Corporation in 2008. The CFIUS review process has been criticized for its lack of predictability (e.g., the term “national security” is not defined in the statutes and regulations) and the potential for abuse rooted in economic protectionism by U.S. compa-nies and their congressional allies.

In conducting its analysis of wheth-er a transaction poses national security risk, CFIUS conducts a two-pronged test: (i) whether the nature of the U.S. business being acquired creates suscep-tibility to impairment of U.S. national security (i.e., whether there is a “vulner-ability”); and (ii) whether the foreign acquirer has the capability or intention to exploit or cause harm (i.e., whether there is a “threat”). “National security risk” is a function of the interaction be-tween threat and vulnerability.

Some practical considerations regarding CFIUS

W hile a de t a i led rev iew of t he CFIUS process is beyond the scope of this discussion, Chinese investors who are interested in making acquisitions in the U.S. may consider the following practical tips:

targets that are in the sensitive indus-tries, such as defence, national security, energy and natural resources, aerospace, transportation and advanced technology, are more likely to present U.S. national security considerations; targets that have contracts with governmental agencies or conduct activities subject to U.S. export controls are also more likely to present U.S. national security considerations; demonstrate, if the Chinese acquirer is controlled by, or otherwise connected with, the Chinese government, that it is independent from the government in terms of management and invest-ment decisions; consult with CFIUS as early as possible regarding the proposed transaction and be prepared to adjust the structure of the transaction based on such consultations; engage U.S. legal ad-visors to develop a comprehensive legal and political strategy to address potential CFIUS concerns, to anticipate and ad-dress potential opposition at federal or state levels, and to identify and nurture potential allies; and particularly if the transaction is likely to be controversial, engage public relations advisors and make full disclosures as early as possible to the relevant audience in the U.S. of the purpose of the acquisition, the acquirer’s investment objectives, institutional and financing arrangements, relevant finan-cial information, intentions and plans af-ter the completion of the acquisition, etc.

III. Getting a deal done: observations in the current environment

Valuation issuesSeller valuation expectations have

not yet adjusted (and will take time to adjust) to the current economic climate. At the same time, acquirers will be very disciplined in their approach and down-side analysis will be robust, with a focus on traditional and outlying risks. A key challenge will be finding creative ways to bridge this valuation gap. This may lead to structures in which risk and reward can be shared over time - joint ventures, minority interest or staged investments, carefully crafted earn outs and structures employing non-cash consideration.

The future is uncertain and parties to a deal will have to understand (and build into models and plans) the pos-sible impact of stimulus measures on the business to be acquired.

Dealing with riskThis will be a heightened concern

for both buyers and sellers. Investors will need to consider both execution risk (that transaction may never close despite a signif icant investment of management time and other resources) and investment risk (the deal does not generate the expected returns or deliver the intended strategic goals). Concerns over these risks will force both buyers and sellers to be better prepared and to pursue fewer initiatives more carefully. Deals are likely to take more time to complete.

Understanding the politicsDepending on the nature of the tar-

get business and the jurisdiction, politi-cal landscaping may be key and early planning will be necessary. As indicated earlier, with respect to U.S. acquisitions, Chinese buyers should seek advice early concerning potential CFIUS and other regulatory issues to help identify and address potential opposition and allies. Understanding the political and regula-tory landscape will help manage deal execution risk.

Due diligenceThis is a key tool in helping address

investment risk. Lack of forward visibility in markets will put pressure on the struc-turing and investigatory stages of transac-tions. Sellers should expect due diligence investigations to become more onerous. Buyers should identify early on what areas are most critical for investigation. With proper organisation and planning, a buyer can be thorough and efficient, but buyers and sellers should expect due diligence to take longer to conclude.

Management and integrationManagement expertise and risk ap-

preciation are critical to the successful completion of any M&A transaction, and these attributes will be even more impor-tant in cross-border deals in the current economic climate. In addition, cross-bor-der deals often fail due to integration is-sues; particular challenges and concerns include cultural differences, defection of key talent, language barriers and market knowledge. To help address these issues, integration planning should begin early and involve those with responsibility for managing the business, considering the impact on existing operations and future growth plans.

(Author : Par tner in the Hong Kong office of Mayer Brown LLP, has over 20 years of experience in advis-ing clients on international invest-ment transactions from New York, London and Hong Kong.)

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Strong Renminbi Policy & the

This, we believe, will be the year of Beijing’s st rong renminbi policy. Despite concerns about exports, we believe Beijing will

keep the CNY pegged against a strong dollar. Combined with cheaper commod-ity prices and the pressing need of many overseas commodity firms to deleverage, this will create the perfect opportunity for China’s firms to significantly ramp up their outward foreign direct investment

in these deals. However, China Invest-ment Corporation (CIC), the sovereign wealth fund which until now has focussed on the financial sector, is shaping up to be a backer of strategic deals. Moreover, the China Development Bank is also a clear backer of large strategic transactions. The bigger deals are being orchestrated by China’s own resource companies, as well as by government foreign-affairs officials. Recently, there has been talk of the Na-tional Energy Administration establishing a special fund to support state-owned enterprises (SOEs), which may entail low interest loans and direct capital injections. The ‘Going Out’ policy to encourage more of China’s firms to invest overseas has been in place for a number of years. We believe that 2009 will be the year when it really gains some scale. Let us flesh out the three main reasons for this.

Important disclosures can be found in the Chart 1 & 2.

1. Strong CNY According to our estimates, as of

January 2009, the CNY’s real effective exchange rate (REER) had appreciated 8.6% y/y and 17.5% since the mid-2005 currency regime change. This is a consid-erable appreciation and gives any China-based company much more buying power on the international market. Moreover, the CNY’s stability against the USD has meant massive CNY appreciations against the world’s commodity currencies in re-

cent months. Chart 1 shows CAD-CNY and AUD-CNY, which have depreciated 34% and 37%, respectively, from their peaks. In other words, commodity as-sets in Canada and Australia have gotten massively cheaper for any China-based company. We expect a return of some dol-lar weakness in H2, but we do not expect much movement against the major com-modity currencies.

2.Cheaper commodities – and the desire to keep them cheaper

The second plank is that commod-ity prices themselves have crashed. The

۞ Beijing’s strong renminbi policy will likely give China’s com-modity firms enormous buying powers in 2009.

۞ Cheap commodities and high leverage at overseas commodity firms provide further support to China’s outward FDI.

۞ We forecast USD 150-180bn of resource-focused Chinese FDI overseas in 2009, vs. USD 80-100bn of FDI into China.

(FDI). China’s outward FDI flows are fo-cussed on three sectors: energy, raw mate-rials, and agricultural land. The beginning of 2009 has seen a flurry of deals in which Chinese investors have secured owner-ship or long-term supply contracts to such things. In February alone, we count USD 65bn worth of deals, roughly equal to Chi-na’s entire FDI outflow in 2008 (on which more below). So far, it seems, the official FX reserves have not been formally used

Coming of Age of China’s Outward FDI

complex is 56% down from its 2008 peak, according to the CRB index. Spot iron ore from India can now be bought for CNY 400-500 a tonne, some 60% off its peaks, as we show in Chart 2. The 2009 iron ore negotiations (which should be completed by April) could see contract prices down by 20% or so from 2008 levels. Chart 3 shows what has happened to the CNY price of WTI crude oil. From its peak of CNY 995 per barrel in July 2008, it has tumbled to around CNY 280 per barrel in January 2009, a 72% drop. (At the same time, retail prices of processed products

Chart 1: CNY appreciates massively Chart 2: Cheaper iron ore

stephen green, Jinny yan, David Barclay

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Chart 3: Oil cheaper in CNY Chart 4: China FDI to boom

onshore fell by only some 20%, making gasoline some 60% more expensive in China than in the US and giving the Chi-nese refiners nice thick margins, which will help them recoup some of their 2008 losses.)

Beyond the short-term desire to capi-talise on low prices, China’s commodi-ties investment should also play a role in smoothing the cycle. At present, many long-term natural resources projects are being shelved due to low prices and prob-lems with credit availability. This will inevitably cause a sharp increase in prices whenever demand returns. If China’s capi-tal can be invested in supply-side capacity now, this should help prevent some of the volatility in prices. (We outlined this risk in our recent Commodity Focus, 4 March 2009, ‘Riding out the storm’.) These deals also give a security-conscious Beijing a stronger toehold on future supply, an important objective should tighter fun-damentals return to global markets and bring China into competition with other large resource-consuming nations.

It is also worth distinguishing be-tween China’s strategic outward FDI and its tactical, short-term, state-led purchases of commodities. The latter is often more targeted at buoying production to protect employment in certain sectors or to pro-tect farmers’ incomes, and the commodity involved is not always of strategic impor-tance. Aluminium is a good example, as China has ample production capabilities and significant inventories. Where China is making outright strategic purchases (of commodities themselves, as opposed to FDI), the intent is the same but the ra-tionale usually differs. For example, the State Reserve Bureau is reportedly buying copper, but the focus here is on building stockpiles for future use as opposed to supporting local smelters. Other strategic

purchases may extend to minor metals like uranium, which is needed to fuel Chi-na’s next wave of nuclear power plants.

3.Liquidity, liquidity, liquidity The third plank supporting China’s

strong FDI outflows this year is simple: liquidity. China’s corporates and banks are (generally) liquid and not highly leveraged. In contrast, potential targets are often pretty highly leveraged. China’s firms are almost uniquely well-placed to take advan-tage of the distress faced by overseas firms that need to refinance. (See Chart 3 & 4)

On the other side of the equation, ex-ports are still falling off a cliff (see OTG, 11 February 2009, ‘At the bottom of the first cliff’). This is leading to concern in the market that Beijing might engineer a competitive devaluation. We do not think this will happen, for four reasons:

1. In a world of contracting global de-mand, a cheaper currency would win few orders.

2. It would more than likely trigger a sell-off of other Asian currencies, leaving China back where it started.

3. It would be a political bombshell in a world looking for stability from China. It would risk triggering retaliations from Washington and Brussels at a time when protectionist sentiment is running high.

Given that the exchange rate is still (probably) undervalued, it would only trigger more speculative capital inflows into China when the financial sector stabi-lises later in the year.

Three types of deals We briefly describe the three types

of deals announced in February 2009, of which we expect to see much more.

1.State-to-state loans-for-oil deals, in which Beijing and an oil-exporting nation sign a long-term supply contract.

These contract deals are usually not

released publicly. The biggest such deal in recent weeks was the USD 25bn deal with Russia, which entails loans to Ros-neft and Transneft in return for interest and the right to buy 300,000bpd of oil for 20 years. There are reports that this oil will be sold at market prices, which hardly seems beneficial to China from a purely economic perspective. As we noted above, though, Beijing appears to be mo-tivated by strategic concerns as well. For our purposes, we assume that the entire loan leaves China via the capital account. Sinopec has also signed a deal with Saudi Arabia’s Aramco under which Sinopec has committed to purchasing future Saudi supply in return for shares in China’s new refineries. This might help deal with over-capacity in Saudi production and Chinese refining. China has also signed similar deals with Venezuela and Brazil.

2.Large state-owned corporations taking stakes in overseas commodities firms.

The USD 19.5bn Chinalco offer for a stake in Rio Tinto’s operations is probably the most significant example yet of this type. If approved by the Australian authori-ties, the deal would give Chinalco signifi-cant stakes in some operations, not just an equity stake in the firm. It would also likely impact the structure of the global iron ore market. Longer-term, some analysts believe that due to the unprecedented structure and depth of the proposed deal, Chinalco could end up acquiring Rio. There have been news reports that China Development Bank is providing the financing. If agreed, the dollars could leave China in return for ownership in 2009.

3.Below-the-radar deals. These are small in scale but many in

number, and their targets are varied. Table 1 at the bottom of this note shows a num-ber of them.

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We expect FDI outflows to exceed FDI inflows in 2009

Where does this leave us in terms of FDI f lows? As Chart 4 shows, China’s outward FDI has been gradually increas-ing in recent years, but the much-forecast boom has not materialised. (That said, many under-the-radar deals probably find their way out of China without appear-ing in the statistics, so these numbers are probably underestimated.) In H1-2008, China’s outward FDI amounted to USD 33bn, and we guess the annual total was in the region of USD 60bn given the seized-up state of the global economy in H2. (The Minister of Commerce recently

said the figure was USD 52bn, but the ministry often seems to under-count such deals.) Based on the f lurry of deals we have already seen this year, it seems like-ly that we will see a significant increase in outflows in 2009. We think USD 140bn is possible.

In H1-2008, China attracted USD 74bn of foreign investment, and we think the FDI figure for 2008 as a whole was in the region of USD 125bn. In 2009, we think FDI will likely decline by 30-40%, to around USD 80-100bn. In other words, we are sticking our necks out and forecast-ing that 2009 will be the first year in which outward FDI exceeds inward FDI. This will likely have a big impact on the capital

China-based investor Acquisi-tion target

Value (USD bn) Details

5-Feb

Shenzhen Chongjin Longman Nonempty, China’s third-largest zinc producer

Perilya Mining 0.02889

Chongjin received approval from Australia’s Foreign Investment Review Board for its USD 28.9 offer to buy a 50.1% stake in Perilya, the company said in a statement published in China Securities Journal.

12-Feb Chinalco (Aluminium Corp. of China) Rio Tinto 19.5

Aluminum Corp of China (Chinalco) agreed on 12-Feb-09 to buy USD 7.2bn of convertible bonds and spend USD 12.3bn on stakes in Rio Tinto’s mines. Groups affected by the USD 19.5bn investment in Rio have until 05-Mar-09 to make submissions to the Australian Consumer and Competition Commission (AC&C).

16-Feb China Minmetals OZ Minerals 1.7

China Minmetals, the nation’s biggest metals trader, agreed to buy OZ Minerals to secure supplies of cop-per, zinc, and gold. Findings on the proposal will be an-nounced on 01-Apr-09, according to the AC&C website.

17-Feb Chinese government Venezuelan government 8

China and Venezuela agreed to double their joint development fund to USD 12bn from USD 6bn. China has contributed USD 8bn.

17-Feb Chinese government Russian government 25 China agreed to lend Russia USD 25bn

under a loan-for-oil agreement.

20-Feb Chinese government Brazilian government 10

China agreed to lend Petrobras USD 10bn to help finance deepwater oil exploration in conjunction with Sinopec. On top of the partnership element, Petrobras agreed to supply 60-100k bpd this year.

20-Feb Hunan Va-lin Iron & Steel

Fortescue Met-als Group Ltd. 0.323

On 20--09Valin confirmed that it is in talks with Fortescue. Valin is reportedly backed by CIC. Media reported that Valin plans to invest USD 323mn in Fortescue in a share placement.

23-Feb China Weichai France’s Mo-teurs Baudouin 0.00236

Weichai said it had agreed to pay USD 2.36mn for assets of Moteurs Baudouin, a maker of marine diesel engines, gearboxes, propellers shafts, etc.

27-Feb CNPCCanada’s Verenex

Energy Inc. 0.357

China National Petroleum Corp. has agreed to buy Canada’s Verenex Energy Inc., including its Libyan oil assets, in a deal worth around USD 357 mn.

account for 2009, bringing it basically into balance (see OTG, 10 March 2009, ‘How hungry is the dragon?’). It will also mark China’s emergence out of the rank and file of developing countries in terms of FDI. In 2007, developing economies, excluding China, invested a combined USD 231bn offshore, according to UNCTAD. Based on current trends, China could very soon exceed that. China’s outward FDI now has scale. (See Table 1) c

(Analysts: Stephen Green, Stan-dard Chartered Bank (China) Limited Head of Research, China; Jinny Yan, Economist; David Barclay, Commodi-ties Analyst )

Table 1: China’s outward FDI (actual and proposed) in February 2009

Sources: Media reports, SCB Global Research

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Energy and resources, Mining industry, Metallurgy, Welding, Electric power2009 The 3rd Western China (Chengdu) Petroleum, Gas and Petrochemical Technology and Exhibition ExpoDate: June 4-June 6, 2009 Frequency: YearlyVenue: Chengdu Century Town New International Convention and Exhibition CenterExhibits: petroleum. Petrochemical technology and equipment, gas pipeline construction, storage and transportation technology, etc.Add: Block A, 7F, Qunyi Building, No.181, Fuqin West Road, Chengdu, Sichuan, ChinaTel: 86-28-68168941Fax: 86-28-68168911Email: 68168911@vip.163.com

2009 China Xinjiang International Petroleum & Chemical Expo and Xinjiang International Energy ExhibitionDate: June 6-June 8, 2009 Frequency: YearlyVenue: Xinjiang International Expo CenterExhibits: petroleum, etc.Add: No.43, Youhao North Road, Urumqi, Xinjiang, China, 830011Tel: 86-991-3855921Fax: 86-991-3855813Email: xinjiangyashi@126.com

2009 The Fourth Shanghai International Energy Saving and Emission Reduction ExpoDate: June 6-June 10, 2009 Frequency: YearlyVenue: Shanghai Everbright Convention and Exhibi-tion CenterExhibits: energy, water, land, materials saving, comprehensive utilization of resources, new energy and renewable energy, environmental protection projects, etc.Web: www.iese-china.comAdd: 1905 Shanghai Information Technology Building, 1555 Kongjiang Road, Shanghai, China, 200090Tel: 86-21-65040153Fax: 86-21-65623340Email: Jacky.ge@iese-china.com

2009 The 15th Shanghai International Metallurgical Industry Expo Date: June 11-June 13, 2009 Frequency: YearlyVenue: Shanghai International Exhibition CenterExhibits: metallurgical products, metallurgy equip-ment, environmental protection and new energy-saving technology, etc.Web: www.metal1986.comAdd: Rm 605, A Building, Yangguang Business Building, 1718 Daduhe Road, Shanghai, China, 200333Tel: 86-21-52830922Fax: 86-21-52830917Email: worldsteel@21expo.net

The 5th China (Beijing) International Exhibition of Solar-Energy Products and Photovoltaic Engineer Date: June 18-June 20, 2009 Frequency: YearlyVenue: China International Exhibition CenterExhibits: PV modules and subassemblies, etc.Add: No.13, Sanlihe Road, Haidian District, Beijing, China, 100037Tel: 86-10-68311370Fax: 86-10-88082061Email: ztj407@126.com

China Military Optical Communications Technology Exchange FairDate: June 17-June 19, 2009 Venue: Beijing Haidian Exhibition CenterExhibits: optical communications system equip-ment, optical fiber and cables, inertial navigation system, optical communication components, etc.Web: www.jygtx.comAdd: No.5, Dachenglichun Garden, Fengtai, Beijing, China, 100039Tel: 86-10-68673374Fax: 86-10-68673374Email: jiangwei1888@126.com

2009 The 5th China Ningxia International Coal and Energy Industry ExpoDate: June 18-June 20, 2009Venue: Yinchuan International Convention and Ex-hibition Center

Exhibits: image show of big energy enterprises, energy projects promotion, investment and financing projects promotion, coal industry technology and product exhibition, etc.Web: www.xbny.cn/newviewAdd: No.9, Lixin Lane, Wenhua West Street, Xingq-ing District, Yinchuan, Ningxia, China, 7150054Tel: 86-951-5055836Fax: 86-951-5055838Email: nxzhh@163.com

The 14th International Construction Energy-Saving, Heat-preserving and Waterproof Products Fair Date: June 18-June 20, 2009 Frequency: YearlyVenue: China International Exhibition CenterExhibits: construct ion energy-saving, heat-preserving and waterproof products, heating and air conditioning products and technology, etc.Add: No.13, Sanlihe Road, Haidian District, Beijing, China, 100037Tel: 86-10-88082075Fax: 86-10-88082034Email: chenhai1688@sohu.com

Construction, City planning, Decorations2009 China Chengdu The 3rd Construction Decoration Materials Expo and The 3rd Floor Laying Materials, Technology and Equipment Exhibition Date: June 5-June 7, 2009 Frequency: YearlyVenue: Chengdu Century Town New International Convention and Exhibition CenterExhibits: flooring, carpet, floor tile, plastic flooring materials, accessories, consumables and laying technology, etc.Add: Room 508, Gaosheng Center, No.2, Gaosh-engqiao East Rd, Chengdu, Sichuan, ChinaTel: 86-28-86080319Fax: 86-28-86080309Email: chengtian@126.com

2009 The 4th China Chengdu Construction Science and Technology ExpoDate: June 5-June 7, 2009 Frequency: Yearly

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Venue: Chengdu Century Town New International Convention and Exhibition CenterExhibits: new type wall body, temperature keeping materials, etc.Add: Room 508, Gaosheng Center, No.2, Gaosh-engqiao East Rd, Chengdu, Sichuan, ChinaTel: 86-28-86080319Fax: 86-28-86080309Email: chengtian@126.com

The 14th Beijing International Construction Coating Fair Date: June 18-June 20, 2009 Frequency: YearlyVenue: China International Exhibition CenterExhibits: interior wall coating, exterior wall coating, fireproof coating, etc.Add: No.13, Sanlihe Road, Haidian District, Beijing, China, 100037Tel: 86-10-88082075Fax: 86-10-88082034Email: chenhai1688@sohu.com

The 14th International Construction Door, Window, Glass Technology and Equipment Fair Date: June 18-June 20, 2009 Frequency: YearlyVenue: China International Exhibition CenterExhibits: automation doors, doors and windows, construction curtain wall, construction glass, door and window processing equipment, etc.Add: No.13, Sanlihe Road, Haidian District, Beijing, China, 100037Tel: 86-10-68317538Email: sunny.99@163.com

The 14th International Construction Eco, Building Materials & Urban Service Exhibition Date: June 18-June 21, 2009 Frequency: YearlyVenue: China International Exhibition CenterExhibits: kitchen and bathroom appliances and hardware, etc.Add: No.13, Sanlihe Road, Haidian District, Beijing, China, 100037Tel: 86-10-88082075Fax: 86-10-88082034Email: yantao8688@yahoo.com.cn

China (Beijing) International Construction Steel Structure Expo 2009 Date: June 18-June 20, 2009 Frequency: YearlyVenue: China International Exhibition CenterWeb: www.icsse.cnExhibits: heavy-duty steel structures, light-duty steel structures, membrane structure of the steel frameAdd: Fourth and Sixth Floor, China Architectural Culture Center Building, No.13, Sanlihe Road, Haid-ian District, Beijing, China, 100037Tel: 86-10-88082104Fax: 86-10-88082136Email: caccd@263.net

The 8th China International Urban Planning, Construction and Landscape Design Fair Date: June 18-June 20, 2009 Frequency: YearlyVenue: China International Exhibition CenterWeb: www.c-us-ld.cnExhibits: scene theme art, wood plastic, anti-cor-rosion wood and landscape construction material,

outdoor furniture and leisure products, gardening products, and other relevant technology and equip-ment, etc.Add: Fourth and Sixth Floor, China Architectural Cultural Center Building, No.13, Sanlihe Road, Haid-ian District, Beijing, China, 100037Tel: 86-10-88082075Fax: 86-10-88082034Email: yantao8688@yahoo.com.cn

The 8th China International Garden Landscape Building and Supporting Equipment Fair Date: June 18-June 20, 2009 Frequency: YearlyVenue: China International Exhibition CenterWeb: www.c-us-ld.cnAdd: No.13, Sanlihe Road, Haidian District, Beijing, China, 100037Tel: 86-10-88082075Fax: 86-10-88082034Email: yantao8688@yahoo.com.cn

Furniture, Household Decorations, Woodwork Floor DecorationsThe 14th International Furniture (Summer) ExhibitionDate: June 5-June 8, 2009 Frequency: YearlyVenue: Dalian World Expo PlazaExhibits: real wood furniture, classic furniture, of-fice and business furniture, soft furniture, outdoor furniture, iron furniture, lighting, etc.Web: www.sinoexhibition.comAdd: 25F, World Trade Tower, No.25, Tongxing Street, Dalian, Liaoning, China, 1106001Tel: 86-411-82538638Fax: 86-411-82538650Email: my12336@126.com

The 14th China International Woodworking Machinery (Summer) ExhibitionDate: June 5-June 8, 2009 Frequency: YearlyVenue: Dalian Xinghai Convention and Exhibition CenterExhibits: woodworking machinery, forestry whole-set equipment, forestry cutting equipment, wood-based panel machinery, second processing equip-ment, bed mattress machinery, etc.Web: www.dlfa.ccAdd: 25F, World Trade Tower, No.25, Tongxing Street, Dalian, Liaoning, China, 1106001Tel: 86-411-82538638Fax: 86-411-82538650Email: my12336@126.com

The 10TH China Qingdao Inter-National Gift, Arts and Crafts and Home Decoration ExpoDate: June 5-June 7, 2009 Web: www.cqige.com

Venue: Qingdao International Convention CenterAdd: Rm 712-715, Shizheng Office Building, No.17, Jiading Road, Qingdao, Shandong, China, 266071Tel: 86-532-83755508Fax: 86-532-83742577Email: qdbln@126.com

Glass, Ceramics, plastic, rubber The Fifth Shanghai International Casting Industrial FairDate: June 11-June 13, 2009 Frequency: YearlyVenue: Shanghai Everbright Convention & Exhibi-tion CenterExhibits: casting, casting environmental protection, labor protection equipment and supplier, analysis, control and instrumentation devices, etc.Web: www.cftp.comAdd: Rm 605, A Building, Yangguang Business Building, 1718 Daduhe Road, Shanghai, China, 200333Tel: 86-21-25911355Fax: 86-21-52830921Email: lins135@126.com

Machinery, Machine tools2009 The 3rd DRX Machinery ExhibitionDate: June 19-June 21, 2009 Frequency: YearlyVenue: Shenzhen Convention and Exhibition CenterExhibits: machine tools and accessories, moulds, tools, measuring and cutting tools, household hard-ware, heating equipment, construction hardwareWeb: www.m669.comAdd: Rm. 2602-2603, Bldg. B, Jinyuan Mansion, Xinwen Lu, Futian Dist., Shenzhen, Guangdong, China, 518000Tel: 86-755-83502097Fax: 86-755-83502435Email: judy17123@sina.com

automation2009 The 9th China (Guangzhou) International Automatic Identification and RFID ExhibitionDate: June 18- June 20, 2009 Frequency: YearlyVenue: Guangzhou Jinhan Exhibition CenterExhibits: automatic identification and bar technology, intelligence card technology, RFID technology, etc.Web: www.scan-china.comAdd: No.171, Lianxin Road, Guangzhou, Guang-dong, China, 510033Tel: 86-20-83558353Fax: 86-20-83549078Email: scan@ste.cn

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Environmental protection and Water processing China International Tire Renovation and Recycling Application ExhibitionDate: May 28-May 30, 2009 Frequency: YearlyVenue: Shanghai Everbright Exhibition CenterExhibits: renovated tires and equipment, tools, etc.Web: www.zonyo.cnAdd: 1705 Fangqun Apartment, Liujiayao, Fengtai District, Beijing, China, 100079Tel: 86-01-87689903Fax: 86-21-87671146Email: 87689923@163.com

The 11th China International Environmental Protection Exhibition and ConferenceDate: June 3-June 7, 2009 Frequency: BienniallyVenue: China International Exhibition CenterExhibits: energy-saving environment protection tech-nology, products and service, energy-saving construc-tion, energy-saving automobile, industrial energy con-servation, agriculture energy conservation, commercial energy conservation, energy-saving solution designAdd: China International Exhibition Center, Beisan-huan, Chaoyang, Beijing, China, 100028Tel: 86-15810052179Email: china-expo2009@163.com

Hotel, Catering, TourismThe 10th China Qingdao International Hotel Products and Equipment ExpoDate: June 5-June 7, 2009 Web: www.cqihe.comVenue: Qingdao International Convention CenterAdd: Rm 712-715, Shizheng Office Building, No.17, Jiading Road, Qingdao, Shandong, China, 266071Tel: 86-532-83755508Fax: 86-532-83742577Email: qdbln@126.com

Wedding Dress, photography2009 Photoics Festival in TaiwanDate: June 11-June 13, 2009 Frequency: YearlyVenue: Taipei World Trade Center Nangang Exhibi-tion Center

Tel: 86-574-82056665Fax: 86-574-87296698Email: candy_d@126.com

Electronic intelligenceThe 8th East China Qingdao International Electronic Industry FairDate: June 4-June 6, 2009 Venue: Qingdao International Convention CenterAdd: Rm 201, Huajia Building, No.52 Shandong Road, Qingdao, Shandong, China, 266071Tel: 86-532-85017077Fax: 86-532-85833615

2009 The 5th China (Guangzhou) International Retail Industry and Electronic Payment ExhibitionDate: June 18-June 20, 2009Venue: Guangzhou Jinhan Exhibition CenterExhibits: modern store, business equipment, com-merce automation, marketing promotion technology, commercial space design and display technology and equipment, etc.Web: www.modernshop.cnAdd: No.171, Lianxin Road, Guangzhou, Guang-dong, China, 510033Tel: 86-20-83561592Fax: 86-20-85549078Email: cecia@ste.cn

2009 The 17th DEX Electronic Exhibition and DPX Photonics ExhibitionDate: June 19-June 21, 2009 Frequency: YearlyVenue: Shenzhen Convention and Exhibition CenterExhibits: electronic equipment, electronic compo-nents, laser products, optical products and FPD and accessoriesWeb: www.e99999.comAdd: Rm. 2602-2603, Bldg. B, Jinyuan Mansion, Xinwen Lu, Futian Dist., Shenzhen, Guangdong, China, 518000Tel: 86-755-83502448Fax: 86-755-83502435Email: zjw@e99999.com

information Technology, Network, Communication, BroadcastInternational Soft China 2009Date: June 9-June 13, 2009 Frequency: YearlyVenue: Beijing International CenterExhibits: system platform software, development softwareWeb: www.csva.org.cnAdd: Room 1401, Zhongruan Building, No.55, South Xueyuan Road, Haidian, Beijing, China, 100081Tel: 86-10-51527167

Fax: 86-10-62186579Email: gucj@css.com.cn

China International Software and Information Service Trade Fair Date: June 17-June 21, 2009 Frequency: YearlyVenue: Dalian World Expo PlazaExhibits: system software, support software applica-tion software, embedded software, system integration solution, software information service, telecommuni-cation equipment, computer manufacture, etc.Web: www.cisis.comTel: 86-411-83628908Fax: 86-411-83635468Email: wangjl@dlbli.gov.cn

sound, Musical instruments, Lighting2009 China International LED (Shenzhen) ExhibitionDate: June 19-June 21, 2009 Frequency: YearlyVenue: Shenzhen Convention and Exhibition CenterExhibits: LED products, neon light productsWeb: www.e99999.comAdd: Rm. 2602-2603, Bldg. B, Jinyuan Mansion, Xinwen Lu, Futian Dist., Shenzhen, Guangdong, China, 518000Tel: 86-755-83502448Fax: 86-755-83502435Email: dex@e99999.com

Media, advertisement2009 The 10th DzAX Advertising, Sign Board & Light Boxes Exhibition Date: June 19-June 21, 2009 Frequency: YearlyVenue: Shenzhen Convention and Exhibition CenterExhibits: ad-making system, video processing system, e-publication, printing systems and public ad.mediaWeb: www.ad555.comAdd: Rm. 2602-2603, Bldg. B, Jinyuan Mansion, Xinwen Lu, Futian Dist., Shenzhen, Guangdong, China, 518000Tel: 86-755-83502441Fax: 86-755-83502435Email: cqq@e99999.com

Food and additives, Beverage, Drinks, seasonings, Dairy productsThe 6th China (Guangzhou) International Food, Beverage Processing and Packaging Industry ExhibitionDate: June 10- June 12, 2009

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Frequency: YearlyVenue: Chinese Export Commodities Fair Pazhou ComplexExhibits: International food processing and packaging technology and equipment, international beer, beverage and liquid food technology and equipment, manufacture, filling, packaging, and PET technology for beer, etc.Add: Room 1105-1106, Fulitianhe, No.4 Huating Road, Tianhe District, Guangzhou, Guangdong, ChinaTel: 86-20-38880410Fax: 86-20-38880408Email: bobo@bmc-zhenwei.com

2009 The 6th Flavor and Fragrance ExhibitionDate: June 11- June 13, 2009 Frequency: YearlyVenue: China Guangzhou Baiyun International Con-vention CenterExhibits: flavor, daily fragrance, edible flavor and fragrance, etc.Web: www.gh001.comAdd: F3, Changde Building, No.177, Changde South Road, Tianhe District, Guangzhou, Guangdong, China, 510665Tel: 86-20-31806185Fax: 86-20-85635196Email: wei88518@163.com

FoodTech Taipei 2009 Date: June 18-June 21, 2009 Venue: Taipei World Trade CenterExhibits: food, processing machinery, bakery and catering equipment, food machinery, pharmaceutical processing machinery and package equipment, etc.Tel: 86-10-67036499Fax: 86-10-67036455Email: lianganxinglxw@126.com

Medical Care, Health CareThe 14th China International Dental Equipment & Affiliated Facilities Exhibition Date: June 10-June 13, 2009 Frequency: YearlyVenue: China International Exhibition CenterExhibits: dental chair, foundry machinery, X-ray equipment and accessories, cement, anaesthesia and operation devices, composite resin, crown and bridge materials, medicine, laser operation, etc.Add: B 3, Wudong Building, No.9, Chegongzhuang Street, Xicheng District, Beijing, China, 100044Tel: 86-10-84600822

packaging, paper, printing and publication2009 The 10th DZX Printing ExhibitionDate: June 19-June 21, 2009 Frequency: YearlyVenue: Shenzhen Convention and Exhibition Center

Exhibits: prepress equipment, printing equipment, post-press equipment and packaging equipment, intaglio printing equipment, accessory equipment, paper and paper productsWeb: www.p66666.comAdd: Rm. 2602-2603, Bldg. B, Jinyuan Mansion, Xinwen Lu, Futian Dist., Shenzhen, Guangdong, China, 518000Tel: 86-755-83502097Fax: 86-755-83502435Email: zhy@e99999.com

Education, Training, Culture and art2009 Shandong International Education ExhibitionDate: June 14-June 16, 2009 Frequency: YearlyVenue: Jinan Shungeng International Convention and Exhibition CenterAdd: 28 Shungeng Road, Jinan, Shandong, China, 250014Tel: 86-13964138550Fax: 86-531-82910367Email: modern_2005@163.com

Commercial Trade, Chain operation, agency, import and exportChina Kunming Import and Export Commodities FairDate: June 6-June 10, 2009 Frequency: YearlyVenue: Kunming International Convention and Exhi-bition CenterWeb: www.kmfair.orgAdd: 13 Floor, Foreign Trade Building, 175 Beijing Road, Kunming, Yunnan, China, 650011Tel: 86-871-3164305Fax: 86-871-3164304Email: kmfair@kmfair.org

China Harbin International Economic and Trade FairDate: June 15-June 19, 2009 Frequency: YearlyVenue: Harbin International Convention and Exhibi-tion CenterExhibits: manufacture, hi-tech, investment and cooperation projects, modern service industry, featured green food, construction material, light in-dustry, foreign exhibition areas, Hong Kong /Taiwan exhibition area, electronics and machinery, furniture, large-scale machineryAdd: No.35, Zhenshun Street, Nangang District, Harbin, Heilongjiang, China, 150090Tel: 86-451-82340896Fax: 86-451-82340226Email: eng@ichtf.com

others, Comprehensive2009 CDCE The 6th Guangzhou Daily Chemical Products ExpoDate: June 11- June 13, 2009 Frequency: YearlyVenue: China Guangzhou Baiyun International Con-vention Center Exhibits: cleansing, skin care, cosmetics, insect killing product, daily chemical raw materials, daily chemical equipment and package products, etc.Add: F3, Changde Building, No.177, Changde South Road, Tianhe District, Guangzhou, Guangdong, China, 510665Tel: 86-20-85837415Fax: 86-20-61036576Email: F518-518@163.com

2009 The 2nd Wax Products and Raw Materials ExhibitionDate: June 11- June 13, 2009 Frequency: YearlyVenue: China Guangzhou Baiyun International Con-vention CenterExhibits: wax products, special wax, animal wax, mineral wax, etc.Web: www.gh001.comAdd: F3, Changde Building, No.177, Changde South Road, Tianhe District, Guangzhou, Guangdong, China, 510665Tel: 86-20-31806185Fax: 86-20-85635196Email: wei88518@163.com

The 6th Guangzhou Daily Chemical Raw Materials and Equipment ExhibitionDate: June 11- June 13, 2009 Frequency: YearlyVenue: China Guangzhou Baiyun International Con-vention CenterExhibits: compound clean agent raw materials and auxiliary clean agent, etc.Web: www.gh001.comAdd: F3, Changde Building, No.177, Changde South Road, Tianhe District, Guangzhou, GuangdongTel: 86-20-31806185Fax: 86-20-85635196Email: wei88518@163.com

2009 Europe-Asia SME Cooperation SeminarDate: June 15-June 16, 2009 Venue: Xi’an Sofitel Renmin PlazaWeb: www.europe-meets-asia.comAdd: B 2501, Chuangye Square, No.48, Keji Road, Hi-tech Zone, Xi’an Shaanxi, China, 710075Tel: 86-29-88350392Fax: 86-29-88350389Email: tinazhang516@126.com

2009 China (Guangzhou) International Analysis Measuring Instrument and Biotechnology ExhibitionDate: June 18- June 20, 2009 Frequency: YearlyVenue: Guangzhou Jinhan Exhibition CenterExhibits: analysis instrument, measuring and testing, etc.Web: www.chinacecia.comAdd: No.171, Lianxin Road, Guangzhou, Guang-dong, China, 510033Tel: 86-20-83561592Fax: 86-20-83549078Email: cecia@ste.cn

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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 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 Online.C

St udent s a nd teachers of Shang-hai Yumin Middle School were glad to meet the new comer yesterday — World Expo 2010 mascot Haibao. For the first time, Haibao enters a middle school in Shanghai and made his debut in Gaoqiao Town, Pudong New

Area, where the campus is located. The statue of Haibao re-ceived a hearty welcome at the unveiling ceremony at the cam-pus. Students could hardly wait to touch the statue and took photos with it. Some students gave Haibao a bear hug. The students also wrote down their wishes on specially made expo cards and signed on the banner of “Expo Civilization Rules.”C

A competition has been launched to choose 200 public relation talents for World Expo 2010 and anyone who has professional quality and communications skills is invited to join in. Mao Jingquan, a senior organizer of the Shanghai Public Relations Association, said contes-tants should be well behaved, creative, flexible and quick to reply.

A good educat ional back-ground, capability in management and promotions as well as knowl-edge of Chinese history and culture and world expositions are also re-quired, he noted. Unlike two similar events previously, the competition this year is more Expo-oriented and will cover the Chinese mainland as well as China’s Hong Kong, Macau

and Taiwan. The competition will involve four stages and conclude on October 1. The final contest will be broadcast live and online vot-ing and expert assessments will be involved. PR stars will provide quality services for the 2010 Expo.C

PR stars urged to step forward

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-tific and cultural exchanges, tackle the global economic crisis and find a sustainable development 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 this event, said Wu, the deputy chairman of Shanghai Committee of the Chinese People’s Political Consultative Conference. She also pointed out that Joint-Africa Pavilion the largest of all joint pa-vilions. Wu also said that Expo Shanghai will be the new platform for Sino-Africa friendship and cooperation. Wu also thanked for Africa’s support for Expo 2010.

Cao Xingzhi, executive chairman of an overseas Chinese Expo promotion committee in southern Africa, said that as Africa’s largest economy, South Africa’s participation is crucial for the success of Expo 2010. Cao also said that they have spent much effort to promote the Expo, Shanghai and China in southern Africa after the establishment of the committee and the results turned out to be very positive.

About 600 people, including South African officials, entrepreneurs and overseas Chinese attended the promotion activity. South Africa is the only African country to build its pavilion in Expo 2010 while other African participants tend to rent pavilions from the organizer or present in the Joint-Africa Pavilion.In the South Africa Pavilion, more than 50 South African enterprises will show their cutting-edge technologies in mining, medicine, biological and aviation industries and seek for more cooperation with Chinese enterprises.C

Expo promotion held in South Africa

Haibao to “tour” the world

Students take a photo with Haibao.

Haibao appears in middle school

The Bolivar ian Re -public of Venezuela signed a par t icipat ion cont ract with the organizer of World Expo 2010 via mail May 27. The country will build a 3,000-square-meter pa-vil ion in Zone C of the Expo site showcasing urban equality as well as develop-ing nations’ at tention to urbanization.

The theme is “A Bet-ter Life, a Better City.” To date, 207 participants have signed the contract.C

Venezuela signs up for Expo

Scene of the launching ceremony.

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Chinese people say they are willing to spend an average of 1,522 yuan (US$222) each at the 2010 World Expo in Shanghai on food, shopping and other activities, according to data from an online survey released May 26.

According to the survey, compiled by worldwide marketing services company Millward Brown-ACSR and Ogilvy, 38 percent of the respondents said they would visit the Expo. About 80 percent said they wanted to learn about foreign cultures and arts at the Expo, while 72 percent said new technology would be one of their main reasons for attending. A total of 13,991 people took part in the survey, held from Feb-ruary to mid-March across the country.

About half of the respondents said they would look at Expo Shanghai Online because visiting the virtual version of the Expo would raise their interest in the real event.C

Expo 2010 mascot Haibao is expected to appear in downtown Johan-nesburg in South Africa today and will move to Cape Town, another major tourist resort in South Africa, May 30. The two promotions are likely to draw the attention of more than 300,000 overseas Chinese in South Africa, the organizer of the World Expo promotion event said.

An overseas Chinese Expo promotion committee in southern Africa was set up in November. It has carried out a series of promotions in South Africa, which enhanced local people’s interest in Expo Shanghai. Execu-tive Chairman of the committee Cao Zhixing said that the Expo 2010 Shanghai is also a grand affair for overseas Chinese. The Expo 2010 needs the contribution from Chinese people all over the world.

Its Chairman Zhang Zhengdi said that the committee would spend more efforts and go extra mile to promote the Expo, Shanghai and China in southern Africa. South Africa is the only African country to build its pavilion in Expo 2010 while other African participants tend to rent pavil-ions from the organizer or present in the Joint-Africa Pavilion. In the South Africa Pavilion, more than 50 South African enterprises will show their cutting-edge technologies in mining, medicine, biological and aviation in-dustries and seek for more cooperation with Chinese enterprises.C

San Marino on May 29 issued a stamp to mark the Expo Shanghai – anoth-er major event for China after Olympics. The stamp values 2.20 euros (US$3.11). In the forefront is the skyline of Lujiazui area, Pudong, a district in Shanghai, in-cluding the Shanghai World Financial Center, also known as the “bottle opener” due to its unique shape, and an emblem of the Shanghai Expo 2010. To the top right corner, the stamp shows the image of China Pavilion to be built in the Expo site. Often called as the “Oriental Crown,” it is inspired by the wooden buildings in ancient China. The stamp also has a sentence of Italian language saying “To-wards Shanghai 2010.”

San Marino’s Azienda Autonoma di Stato Filatelica e Numismatica, the state company for Philatelic and Numismatics, said that Pudong is the mark of Shanghai with skyscrapers representing Shanghai’s economic dynamics and China Pavilion inherits traditional Chinese architecture style.

San Marino’s minister for tourism Fabio Berardi said that San Marino and China have long lasting friendship and San Marino decided to participate in Expo 2010 and issuing stamps to mark the friendship. China’s ambassador to Ita-ly, Su Yuxi, thanked San Marino for issuing the stamp and wished San Marino’s exhibition a success in Expo 2010. Since World War II, San Marino has only at-tended two World Expos: Brussels Expo in 1958 and Lisbon Expo in 1998.C

Shanghai Mayor Han Zheng yesterday (May 29) invited visiting Presi-dent of Sierra Leone Ernest Bai Koroma to visit the 2010 World Expo in 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.

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-one is also seeking further cooperation between the two countries, especially on tourism, agriculture and mining industries. Koroma also thanked China for assisting those Sierra Leone’s students to study in China.

China’s ambassador to Sierra Leone Qiu Shaofang and Vice Mayor Tang Gengjie also attended the meeting.C

Kingdom of Cambodia signed a participation contract with the orga-nizer of World Expo 2010 May 27. So far, 208 countries and international organizations have signed up for attendance in World Expo 2010.

The country will rent a 1,000-square-meter pavilion from the organizer in Zone B of the Expo site showcasing the variety of urban culture from an-cient Cambodia to the present day.C

The opening ceremony of the 2010 Shanghai World Expo will be held on the night of April 30 next year, the Expo organizer said May 27. The ceremony will take place indoors at both the Expo Center and Performance Center, as well as outdoors along the Huangpu River. Meanwhile, the organizer also re-vealed May 27 that visitors to the Expo will be able to delight in the singing of Spanish tenor Placido Do-mingo, be thrilled by Canada’s Cirque du Soleil and marvel at Shaolin and Wudang kung fu displays.

About 680 performances from across the world have been selected to perform during the 2010 event, and some world famous performers have already con-firmed their participation, said, May 27. Visitors will also have a chance to watch traditional African per-formances like a drum show from Burundi, Hu said.

The Expo will have about 1,000 performances and a total of more than 20,000 sessions during the 184-day event. About 100 sessions will be held every day in 32 outdoor or indoor stages dotted around the Expo 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 those performances unless numbers have to be re-stricted because of demand, Hu added. Shanghai will provide an opera and a melodrama at the 2010 event.C

Expo opening ceremony set

Poll reveals Expo intentionsExpo fever in South Africa

San Marino issues Expo Shanghai stamp

Mayor invites Sierra Leone President to Expo

Cambodia signs up for Expo

Mayor invites Singapore MM to visit Expo

Shanghai Mayor Han Zheng welcomed the arrival of Singapore Minister Mentor Lee Kuan Yew yesterday and invited Lee to visit the 2010 World Expo in Shang-hai. Han congratulated Lee on the 15th anniversary of 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.

The two exchanged on how Shanghai and Singa-pore face up to the global economic down. Lee em-phasized the importance of education investment, as talent plays a vital role in economic recovery. Lee said he will come to Shanghai to visit the World Expo next year and Singapore will support and take an active part in the Expo 2010.C

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Yang Wei

Platform to showPablo Molina Petrovich, general manager architect of Architectural Office Associa-

tion of Chile, is satisfied with what he has achieved by displaying a promotion booth for his newly-established China office at the 12th CHITEC. “Our Beijing office was just established at the early January this year, so it’s high time to promote ourselves to be more familiar with Chinese. China now is full of opportunities here,” he said.

The CHITEC in Petrovich’s comments is the “China Beijing International High-tech Expo” for short, and it is the 12th session this year, held in China International Exhibition Center, Beijing, from May 19 to 24, 2009. The 12th CHITEC is jointly sponsored by the Ministry of Science and Technology, the Ministry of Commerce, the Ministry of Education, the Ministry of Industry and Information, China Council for the Promotion of International Trade (CCPIT), State Intellectual Property Office, and Beijing Municipal Government, aim-ing at building a platform for international communication and cooperation.

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 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 ChinaZhongguancun, 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 Zhongguancun in this Expo include: 1) the all-round digital video solution “e-Zhongguan-

cun”; 2) the full-service access network & 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-inch laser TV from Phoebus Vision.

Electronic companies also show their innovation ability. One of the highlights from Hisense company is China’s first LED back-lit LCD TV. Hisense showcases a full range of latest products covering multimedia, home appliances, communi-cations, real estate, and intelligent trans-portation at this year’s CHITEC, such as various flat-panel TVs, air conditioners, refrigerators, and 3G mobile phones, but also see some specialty systems and tech-nical solutions underpinning the everyday life of the citizens.

China’s leading color TV maker Changhong, which has been participat-ing in CHITEC for several years in a row, demonstrates a new plasma display, which is the first one in China with an independent IPR. The production line was launched in April this year, producing more than ten models of plasma TV. This is believed to be a major breakthrough in the development of flat-panel TV industry in China. Led by the plasma display proj-

CHITEC, Innovation Changes the World

Close touch to Zhongguancun.

China’s first LED back-lit LCD TV by Hisense.

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ect, Changhong is set to build China’s plasma industry chain. “The Interactive Exhibition Area of Innovative Technologies

from Youth in Beijing” is featured at this year’s CHITEC to show-case the capability and level of technology innovation of youth in the capital region from more than 30 works selected from 150 en-tries, including software & chips, electronic & mechanical devices, instruments & meters, and moulds & models, involving topics of great concern to the public, such as energy efficiency & emissions reduction, electronic information & modern communications, bio-medicine, environmental protection, new energy, and utilization of reusable resources.

Going-out promotionTo help Chinese enterprises “go out”, and to increase the

internationalization level of Chinese enterprises, the “Overseas Investment Promotion for Chinese Enterprises” was held at this year’s CHITEC on May 19. This was the 5th consecutive time for CHITEC to organize the promotion event.

More than one hundred domestic companies have joined in the event. Business promotion organizations from a number of countries also debuted at CHITEC, including Think London from UK, the FrankfurtRheinMain GmbH International Marketing of the Region from Germany, and the Berne Economic Development Agency (BEDA) from Switzerland.

It’s the first time for CHITEC to launch special promotion seminars for U.S. government procurement projects and com-mercial opportunities of the London Olympics, paving a new path for Chinese enterprises to realize their expansions in international markets. On the “Sharing Opportunities in London Olympic Games” promotion, the London Development Agency and Board of Investment gave a detailed introduction to trade and investment opportunities brought by the Olympic Games in London, the in-vestment rules, bidding procedures and the specific participatory methods so as to promote Chinese enterprises to participate in the London Olympic material procurement bid, and help Beijing Olympics scientific and technological achievements to go to the international market. Promotion of U.S. Government Procurement Projects, taking “entering the U.S. government procurement market to show the Chinese brands” as the theme, invited the U.S. Federal Procurement Authority to introduce the U.S. government’s pro-curement policies, procedures and the main channels so as to build the platform for Chinese enterprises to participate in international competition.

Regional cooperation28 provinces and cites are participated in the CHITEC this

year and 530 projects are introduced calling for technology sup-port. The exhibition successfully launched 47 projects’ coopera-tion, involving the value of RMB 10.423 billion.

On the first day at the 12th CHITECT, the Hunan delegation, from mid-south China province, announced 400 key projects, more than 180 projects for negotiation, and 17 projects to which agree-ments were to be signed valuing at RMB 3.386 billion in total, at-tracting more than 500 visitors attended the province’s promotion session.

The national Changsha Economy and Technology Develop-ment Zone, the national Zhuzhou New & High Technology Park (Hunan European Industry Park), the Xiangtan Jiuhua Economic Zone, and the Chenzhou Industry Park were also promoted dur-ing the session. It’s also the first appearance of the “Changsha-Zhuzhou-Xiangtan Conurbation” at the CHITEC.

The delegation from Chongqing, a provincial city in mid-west China, also promoted 20 independently developed major technologies, to seek cooperation in terms of funding, technology, and talents. Among them, there are 8 industry projects, 7 social development projects, and 5 agriculture projects. These projects are independently developed in Chongqing or jointly developed with domestic and international partners, with an independent IPR.

Guangxi, a south-east China province, brought key projects from seven industries to the CHITEC, involving local industries of metallurgy, nonferrous metals, machinery, power generation, pet-rochemical, automobile, and food processing.

The first CHITEC (once was called China Beijing High-tech Industry International Week) was authorized by State Council to be held in Beijing in May, 1998. It has been au-thorized to be held regularly in Beijing in May every year since the third session in 2000. With the aim of forging inter-national brand by the organizing committee, it was renamed as CHITEC in the fifth conference. From the beginning of CHITEC’s foundation, the organizing committee established its’ direction idea as “Beijing builds up a platform to serve all country and the world”.

Links

Huaibei Zhongrun Bio-energy Technology Development Co., Ltd. is a high-tech Sino-US joint venture, also a par-ticipator of the 12th CHITEC. Its majority shareholder is Anhui Huaibei Mining Group and it is co-sponsored by

Anhui Guohua Group and US Sun Pharmaceutical Industries Ltd. The major research and development field of the company lies in re-fining technology of cellulosic biomass, production technology, and the industrialization of development and.

With the support of Anhui provincial government and Huai-bei municipal government, all the staff in Huaibei Zhongrun bio-energy carried on scientific research day and night and has success-fully developed the first generation of “bio-oil” refining technology and production process on the basis of their invention of “bio-oil” technology. Besides, they have also completed the 2 liters reactor pilot work, with the 1000 liters reactor of semi-commercial produc-

Zhongrun, Heading for Advanced Bio-Energy Technology

tion process for the layout and equipment design been basically completed. Right now it is left to equipment customization, instal-lation and commissioning, and the commercial production is about to begin.

“Using wood fiber as raw material to produce bio-diesel” is the technological breakthrough that has long been dreamed of by the personnel in the field of cellulosic biomass refining. Government de-partments in some developed countries and well-known enterprises, such as the United States Department of Energy and the current three major oil companies have been actively explore the development of this technology. Huaibei Zhongrun’s invention of “bio-oil” produc-tion technology has discovered the potential profitability of refining cellulosic biomass, and a way to increase their peasants’ income. What’s more, it is also a way to solve global warming, to protect the earth and to ensure sustainable human development.

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Fossil oil is converted from the organic carbon such as the 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 materials to use in the production of biodegradable plastics, resins, detergents, pesticides, pharmaceuticals, and food additives , etc.

Huaibei Zhongrun’s invention of “bio-oil” technology opened up an entirely new industry in the world: “Biological Chemical Fi-ber”, which is also known as “cellulosic biomass refining for chemi-cals, liquid fuels’, and food”. Huaibei Zhongrun defined the new industry as “the use of cellulosic biomass as raw materials; through the physical, chemical or biological methods, we can prepare chemi-cal raw materials, food, and refine liquid fuels.”

Huaibei Zhongrun’s “bio-oil” production and refining technol-ogy has great potential for profit. The production of gasoline and diesel are about 20% of the cellulosic biomass, but their output value is of less than 1%. So no matter how the international crude oil price fluctuations, it will not affect the market competitiveness of the “bio-chemical fiber”. Using Huaibei Zhongrun’s “bio-oil” production and refining technology, the cellulosic biomass produced in China each year can provide adequate food and chemical raw materials and food additives, as well as output more than 200 million tons of gasoline and diesel at the same time.

China Kunming Import & Export Commodities Fair (known as Kunming Fair) is a regional trade fair jointly sponsored by China’s seven local governments, i.e. Sichuan, Yunnan, Guizhou, Guangxi, Tibet, Chongqing and Chengdu. Kunming Fair has been successfully held annually for sixteen consecutive years since 1993, and embraces its 17th session from June 6 to 10, 2009. During the Kunming Fair, a special South Asia Exhibition is held at the same time, and it is its 2nd session this year.

After 16 years’ effort, Kunming Fair is on the way to a regional fair facing South East Asia and South Asia, integrating tangible goods trade, offering service trade and cross-border investment with international economic corporation. By this, Kunming Fair is play-ing a more and more important role in improving the circulation of productive elements, upgrading of consumption structure and regional economy integration, enhancing the Economic Cooperation in Greater Mekong Sub-region, also serving as a platform of propel-

Kunming Fair, More than Regional Cooperation

Date June 6th – 10th, annually

Venue Kunming International Convention & Exhibition Center, Kunming, Yunnan Province, China

Organizer The People’s Government of Yunnan Province

Sponsors

The Ministry of Commerce of the People’s Republic of China, and seven provincial governments of Yunnan, Chongqing, Sichuan, Guizhou, Guanxi, Tibet and Chengdu

Profile of the Kunming Fair

ling export-oriented economic development in Southwestern Area of China.

Up to the end of this May, domestic enterprises which had ex-pressed their willingness to participate the Fair reached over 1,200, covering 13 provinces and cities. Moreover, 500 overseas enterprises from 22 countries and regions also attend the Kunming Fair, includ-ing ASEAN countries, south Asia, South Korea, U.S., Russia, Italy, Hong Kong SAR, and so on. Both data hit the records of the Fair.

Kunming Fair covers 6 commodity professional pavilions, and 5 theme pavilions to boost the import and export trade and technolo-gy, and economic and technological cooperation. There are pavilions for all sectors from Machinery & Electronics; Agricultural Products; IT Industry; Chemicals & Minerals; Light Industries & Textiles; and Pharmaceuticals & Healthcare Products. There are also theme pavil-ions, including the South Asian Pavilion, International Pavilion, For-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.

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This May marks the one-year anniversary of Sichuan’s earth-quake, and also one year’s efforts on their home reconstruc-tion. Chengdu, the capital city of Sichuan province, sur-vived from the earthquake, now focuses its unique strength

to build a more modern city, and prepares to join in the list of “favorite international conference holding destination”.

On May 10, the Forum for Building An International Confer-ence Destination City was held in Chengdu, hosted by the Conven-tion and Exhibition Development Office of Chengdu City. On the exact day, the forum yielded an initial fruit of 9 signed contracts, involving World Federation of Chinese Medicine Societies, China Logistics Technology Association (CLTA), China Chief Informa-tion Officer Association (CCIOA), Jing & Kai Investments Co. Ltd., Minority Supplier Development in China Organization, and other professional associations and organizations.

One of the cooperation partners signed at the forum, Jing & Kai Investments Co. Ltd., a professional organization engaged in arts investment and consultation, is based in Beijing, but has worldwide connection with Chinese Taiwan, Singapore and New York. Its Director Yang Xinyi, an Art History Ph.D from Cornell University, spoke highly of Chengdu. “Among the cities I’ve trav-eled in China and abroad, I love Chengdu very much. My company organizes many international art conferences and exhibitions each year, and when Mr. Wang Qingdao, Chief Editor of Meetings China, suggested me that ‘Why don’t you think about holding conferences in Chengdu?’ I answered, ‘Yes, that is a brilliant idea!’ Today I’ve already signed an agreement of intent with the Convention and Ex-hibition Development Office of Chengdu, and our first practical co-operation project could be expected to launch in the next year,” Yang expressed in optimistic.

Usually, the conference industry is called the pearl of the crown in the tourism industry. As an integral part of the modern service industry, the conference and exhibition industry has a long industrial chain connected to many industries. Conferences’ hosting sector which involves the flow of commodities, materials, human resources, capital and information, are driving up the city’s consumption in the transportation, accommodation, catering, retail, tourism, real estate,

Chengdu, The Next Destination for International Conferences

Yang Wei

postal service, telecommunications, advertising, banking and insur-ance industries. And Chengdu is gaining growing global fame by successfully hosting a series of international conferences.

Chen Lin, chief director of the Convention and Exhibition Development Office of Chengdu City introduced diverse attractive-ness of Chengdu at the forum, to the experts and partners attended. In 2008, Chengdu produced an annual GDP of RMB 350 billion, and fortunately the major of the city remained undamaged in the earthquake last year. As long as the city’s economic strength and competitiveness increasing, Chengdu’s development has boosted a wide range of key industries, such as aviation industry, medical and pharmacy industry. Based on the enhanced economic background, the policy support from the local government arrives in time for the conference industry. “Chengdu is the earliest city in China to set up a 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-por t ant role i n national rail trans-portation system. Shuangliu Inter-national Airport in Chengdu ranks the 4th largest in China, possessing the capacit y of over 200 national f light routes and 25 international flight routes.

Besides, as an expanding chain of conference industry, rich tourism resources add the charm of Chengdu, which owns many world material and non-material heritages. Long history dating back from the Three Kingdom period (AD 220-280) left the city with abundant cultural resources and historical spots. The reputation of the “hometown of panda” also releases the precious and gifted natural environment there.

And don’t mention the mouth-watering Chengdu dishes! “When I was in Canada, the most longing food for every overseas Chinese I know was the Sichuan flavor food,” Westley Zhang, an overseas returnee expressed his strong impression to the delicious memories he used to keep in his Canadian years. “The most popular Chinese restaurants welcomed in western countries are Sichuan restaurants. It’s an interesting opportunity to taste the typical Sichuan local style for foreigners when they travel to their conference destination here,” said Zhang.

Representatives from Chengdu hotel industry and public rela-tions companies announced their determination of full support to the further development of the city’s conference industry at the forum.

Chengdu boasts rich treasures.

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CC

pit

On April 23, Chai r man Wan J i fe i me t w i t h g l o b a l V i c e -president of John Deere of United S t a t e s S t a m p and the delega-tion. During the meeting, Chair-ma n Wa n J i fe i introduced to the g uest s Ch ina’s p o s i t i v e m e a -sures in response to the i nte r na-tional f inancial crisis, especially the aid- agricul-t u re pol icy in-troduced by the Chinese government.

Chairman Wan said that China has stepped up the subsi-dies of purchase of agricultural machinery for farmers, which will create a good market op-portunity for agricultural ma-chinery manufacturers includ-ing the John Deere Company. It is hoped that John Deere Com-pany could increase investment in the Chinese market, contin-ue to support the development of agricultural machinery in China, and make new contribu-tions for the Sino-US economic and trade cooperation.C

On April 28, jointly organized by the CCPIT and the Mu-nicipal Government of Hague, Netherlands, the Chinese Products Promotion Week (Europe), also the 2nd China-EU Cooperation Forum on Economy and Trade was held in Hague. As invited by the Municipal Government of Hague, CCPIT Vice Chairman Zhang Wei led the Chinese business delegation consisting of 150 members attending the forum. Over 250 EU entrepreneurs, representatives from governments and business associations attended the forum.

Chinese outbound investment in five fields Vice Chairman Zhang Wei delivered a keynote speech on the

forum, introducing to the measures taken by the Chinese govern-ment to combat the financial crisis and their effects and calling on China and the EU to make greater joint efforts to help enterprises get rid of the negative influence of the financial crisis. He noted that China’s quick response to the financial crisis has gained consider-able results so far with the economic operation data indicating a better recovery of China’s economy than expected. He also pointed out five major fields in which Chinese enterprises make outbound investment to European enterprises, including overseas resources, scientific research and technology, bio-pharmacy manufacturing, construction contracting and service industry.

He emphasized the three advantages for Chinese enterprises to

go global: the first one is the financial crisis has led to the shrinking of foreign assets; the second is all countries are actively improving their environment for investment attraction; the third is hardships of many countries enhance their demand for Chinese products with fine quality and low price. He then introduced to the 12 events or-ganized by the CCPIT to help Chinese enterprises go through the crisis and promote their products.

Project match-makings between the east and west As an important event for the Chinese Products Promotion

Week, project match-makings were organized. Nearly 200 Europe-an enterprises and 70 Chinese enterprises carried out approximately 500 negotiations and reached a number of cooperation intentions on trade and investment projects covering over 20 industries such as textile, building materials, food, medical instruments, machinery, tourism and mining, etc.

Chinese enterprises gave a good feedback to the match-mak-ings, considering the member states of the EU potential markets in spite of the considerable effects of the financial crisis on China-EU trade and investment. By attending the forum, Chinese enterprises realized they should conduct more research on the markets of the EU member states, especially the consuming habits and potential demand of different areas.C

On April 24, organized by the CCPIT, Dongguan Municipal People’s Government, the China-Arab Business Council and the Sulaymaniyah Chamber of Com-

merce and Industry of Iraq, the China-Iraq Products Purchasing Fair 2009 was successfully held at the Dongguan Exhibition International Hotel. Nearly 30 purchasers from Iraq and over 120 Dongguan sup-pliers participated in the fair.

CCPIT Secretary General Xu Hubin delivered a speech at the fair, pointing out that since the financial crisis broke out last year, responding to the call from the central government of maintaining growth and boosting export, the CCPIT has been striving to help local governments and enterprises, functioning as the platform for economic and trade exchanges and inviting foreign purchasers to come to China; that this fair was held at the request of the Dongguan Municipal Government, aiming at aid-ing enterprises in Dongguan overcoming the negative effects of the global financial crisis, vigorously exploring the Middle East market meanwhile recommending premium products to the Iraqi purchasers.

More international purchasers are welcomed Deputy Secretary General Liu Xuecong appreciated CCPIT’s arrangement of the purchasing fair

in Dongguan and welcomed the special visit of the Iraqi purchasers to Dongguan, pointing out that Dongguan possesses a strong and developed economy with a large number of enterprises, a complete variety of industries and fine quality products, and the municipal government is doing everything to turn the crisis into opportunity to help enterprises explore emerging markets in the Middle East and Latin America, etc. He hoped the CCPIT would continue to introduce more international purchases to Dongguan.

Later, the CCPIT Dongguan Sub-council and the Sulaymaniyah Chamber of Commerce and Industry of Iraq signed a MOU for Cooperation with respect to the strengthening of cooperation and bi-lateral trade promotion, agreeing on Iraqi delegations will be organized regularly to purchase in Dong-guan and bring the premium products of Dongguan back to the Iraqi people.

Successful match-makings In the mean time, Chinese and Iraqi entrepreneurs had match-making talks. According to the in-

dustry distribution of the Iraqi purchasers, the CCPIT Dongguan Sub-council organized 121 suppliers to participate in the fair, covering seven major industries of furniture, textile, building materials, home appliances, hardware, electromechanical products and light industry products (suitcases and bags, shoes, toys, stationery and halal food, etc). The attending Iraqi purchasers were lingering on the high quality products manufactured by enterprises in Dongguan.

Both sides reached a number of purchasing intentions and according to preliminary statistics, the purchasing amount at the fair had surpassed 20 million dollars.C

The Chinese Products Promotion Week (Europe), also the 2nd China-EU Cooperation Forum on Economy and Trade held in Hague

Cooperation on Agricultural M

achinery Industry

China-Iraq Products Purchasing Fair 2009 successfully held

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Goods under duty reduction or exemption is a tariff preference measure that the state gives to the qualified enterprises and units.

When enjoying the right of duty reduction or exemption, enterprises and units shall value this right and assume the responsibil-ity to apply for, to use, to take care of and to deal with the goods under duty reduction or exemption in accordance with laws and regulations. In order to make the enterprises and units understand the requirements for the application for and supervision over the goods under duty reduction or exemption, to enhance the internal administration and to promote the sound relationship and win-win cooperation between Customs and enter-prises and units, here Customs will notify the relevant affairs seriously as follows:

I. Application Procedures1. Application process: prerecord of

the project of the applying units — examina-tion and approval of Customs for the project — prerecord of duty reduction or exemption for the applying units — examination and approval of Customs for duty reduction or exemption — production of the Duty Im-position/Exemption Certificate for Import/Export Goods by Customs — declaration for importation

2. Time limit for application: project units shall declare to Customs with the hold of complete and valid papers and documents for examination and approval formalities for duty reduction or exemption granted for import or export goods before importing the goods.

3. Time limit for Customs acceptation: Customs shall complete the procedures for application to put on record and to examine and approve the duty reduction or exemption within 10 working days after the second day when accepting the application under the condition that the electronic data is doubt-less as well as all the papers and documents are complete and valid. When, owning to such reasons as clearing the policies, limits of authority for examination and approval and technical index that shall ask the Cus-toms General Administration for instruc-tions, or because of other special conditions

Guide to Application, Transaction and Administration

for Duty Reduction or Exemptionthat the Customs is unable to complete the registration procedures during the specific time or to issue the Duty Imposition/Exemp-tion Certificate for Import/Export Goods, Customs may use discretion to prolong the period after gaining the approval from the competent Customs Director or the person that is authorized.

II. Administrative Regulations1. Application for duty reduction or

exemption granted for goods must be based upon the purpose for private use. Enterprises and units shall not apply for and go through the formalities for duty reduction or exemp-tion granted for goods for others in the name of themselves.

2. Goods granted with duty reduction or exemption belong to goods under Cus-toms supervision and control. Throughout the period of Customs supervision and control, no unit (enterprise) or individual may sell, keep transfer, transpose, refit, rent, mortgage, impawn, shift to other use, or change the use area, the user or the use way of goods under specific duty reduction or exemption without Customs authorization. Units (enterprises) or individuals shall gain the Customs approval and go through the relevant formalities to deal with such affairs as listed above or other affairs.

3. Customs shall not accept the ap-plication for duty reduction or exemption if the project units (enterprises) do not apply to Customs for going through formalities for duty reduction or exemption before import-ing or exporting goods without any special reason.

4. Project units (enterprises) shall take the consequences of losing the Duty Im-position/Exemption Certificate for Import/Export Goods owning to their own reason.

5. Under the approval of the compe-tent department for project modifications (including modifications of character of the enterprise, transfer of stock rights, name of the enterprise, legal address, time limit of cooperation, and list of equipment), project units (enterprises) that have been put on record for duty reduction or exemption shall apply to Customs for modifying the record that has been put on before.

6. Project units (enterprises) shall ap-ply to competent Customs in advance to go through the corresponding formalities in accordance with the relevant regulations of Customs on condition that the ownership of the goods under duty reduction or exemp-tion or the character of the project units (enterprises) are changing because of amal-gamation, division, assets recomposition, modification or revocation of stock rights, dismission, bankruptcy or other reasons for termination of the units (enterprises).

7. Customs may conduct audits on account books, account vouchers, declara-tion forms and other relevant data as well as goods of the enterprises and units directly related to import and export activities within the period of Customs supervision and con-trol over goods granted with duty reduction or exemption and three years afterwards.

8. The party concerned shall clear the Customs in advance when the goods under Customs supervision and control (including the goods granted with duty reduction or exemption under Customs supervision and control) will be dealt with in accordance with the judgement, decision of the people’s court or the decision of the relevant adminis-trative departments.

9. Project units (enterprises) shall re-port the conditions of the goods granted with duty reduction or exemption to the compe-tent Customs once a year after the release of such goods within the period of Customs supervision and control.

10. Customs supervision and control will be terminated automatically when the time limit of Customs supervision and con-trol over equipment granted with duty recep-tion or exemption is reached on condition that there is no performance violating the Customs regulations. Project units (enter-prises) shall apply to Customs for termina-tion with the hold of the relevant papers and documents if the control termination certifi-cate is needed.

Periods of Customs supervision and control over goods under duty reduction or exemption are as follows:

1. Vessels, aircrafts: 8 years2. Motor vehicles: 6 years3. Other goods: 5 years

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III. Relevant Provisions about Punishments of the Customs Law of the People’s Republic of China

…… Article 82

Breach of this Law and relevant laws and administrative regulations, evasion of Customs control, defraud payable impost, elusion of national inward and outward pro-hibition or restriction in any of the situations listed below shall be deemed as smuggling:

……1. to sell within the territory, with-

out Customs permission and without

Management of the Enterprises Granted for Convenient and Quick Customs Clearance

I. What is the enterprise granted for convenient and quick customs clearance?

Customs General Administration and the Ministry of Foreign Trade and Economic Cooperation jointly issued policy measures to facilitate customs clearance in 2001 to further support the development of high-tech industries. The enterprise who meets the requirements, after application and ap-proval, can apply to one or more facilitative procedures for customs clearance.

II. What facilitative measures can the enterprises granted for convenient and quick customs clearance enjoy?

Customs clearance measures mainly include customs declarations in advance, networking declaration, rapid transit, door-to-door inspection and release, urgent cus-toms clearance and release with customs security.1. Declaration in advance

To shorten the operating hours of cus-toms clearance, these enterprises can, in the case that the description, the specifications and the quantity of the import and export goods are determinate, declare to the cus-toms in advance and submit related docu-ments after import goods shipped and before arriving or within 3 days before export

having paid the payable duties and taxes or producing relevant licensing docu-ment, bonded goods, goods under specific duty reduction or exemption and other goods, articles or inward foreign means of t ranspor t under Customs cont rol. If any of the acts listed in the preceding paragraph does not constitute the crime of smuggling, the Customs may, while con-fiscating the smuggled goods, articles and illegal proceeds obtained therefrom, concur-rently impose a fine on the person or persons concerned. When any of the acts listed in the first paragraph of this Article that constitutes a crime, the person or persons concerned

shall be investigated for criminal liability according to law.

…… Article 86

A fine may be imposed for any of the following acts which violate this Law and the illegal proceeds obtained therefrom shall be confiscated if there any:

……2. to open, and dismantle, collect,

deliver, forward, transpose, refit, mortgage, impawn, keep transfer, replace label, shift to other use or conduct other treatment on goods under Customs supervision and con-trol without Customs permission.

Guangzhou Customs Guide to Clearance of Import/Export Goods

goods carried to the customs surveillance zone. Customs shall directly examine and release the goods after arrival of the goods.2. Networking declaration

In their offices, the enterprises shall apply China E-Port platform and directly declare to the customs at the place where the goods enter the territory or the compe-tent customs. The enterprises shall input all customs data once only. Therefore, the data shall transmit through network among im-port and export management departments. Customs examines the declaration electronic data and send electronic return receipt by which document audit and cargo clearance procedures may be made by the enterprises themselves or their entrusted agents in the customs clearance spot. Some customs in good condition shall collect duties by nomi-nated bank online. Customs issues electronic payment notice to the enterprise, and release the goods based on the electronic return re-ceipt of bank transfers.3. Rapid transit

According to the requirements of above-mentioned enterprises, customs shall give priority to their goods imported and exported in the different domestic ports (not including the goods that the state designate the ports to import/export), to go through customs formalities of rapid transit transpor-tation.4. Door-to-door inspection and release

To the import/export goods that shall be examined but be not convenient to be examined in customs clearance spot, cus-

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.5. Urgent customs clearance

Customs gives priority to auditing to the import/export goods of above-mentioned enterprises. In the customs clearance spot with excessive import/export goods, cus-toms shall establish “to facilitate customs clearance” window to go through customs formalities in advance. These enterprises can contact with the competent customs through an appointment for customs clear-ance procedures during working hours and holidays.6. Release with customs securities

Because of a temporary inability to provide certain documents (not including import and export license documents) or other information, customs are unable to identify the goods classification, assessment of value and other customs clearance condi-tions resulting in unpunctual examination and release of the goods. To solve such prob-lems, customs shall allow above-mentioned enterprises to go through customs formali-ties in advance, in the form of securities rec-ognized by the customs, and to add on the document or information and pay duties or go through other procedures after a specified period of time.

III. What conditions are required to apply for facilitative measures for customs clearance?

Any type of the following enterprises can apply to the Customs:

1. The large high-tech manufacturing enterprises (including state-owned enterpris-es, private enterprises and foreign-invested enterprises), registered with Guangzhou Customs, engaged in high-tech manufacture with production included in “Chinese Ex-ports of High-tech Products Catalog” jointly compiled by the Ministry of Science and Technology and Ministry of Foreign Trade and Economic Cooperation, Ministry of Finance, State Administration of Taxation and Customs General Administration, with export volume over 100 million U.S. dol-

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I. Characteristic of the supervision mode of “Local Declaration & Port Clearance”

This new mode means that the consign-or, consignee or agent (hereafter referred to as “declarant”) could choose any competent customs under the jurisdiction of Guangzhou Customs to make declaration and go through the formalities of document-checking and duty-paying, and then finish the cargo-exam-ination and cargo-release at the customs of-fice of entry or exit. The new mode separates the declaration of declarant and the examina-tion of customs. Therefore, it saves the cost on declaration and transportation and inures to the management of customs.

II. Definition of competent customs and port customs

Competent customs refers to other cus-toms offices beyond the customs office of entry or exit.

Port customs refers to the customs of-fice of entry or exit.

In the new supervision mode, the ports of entry and exit now mainly include New Baiyun International Airport and the New Port of Nansha. So the port customs refers to Baiyun Airport Customs House and Pa-nyu Customs House.

III. Terms of applicationAll cargoes are applicable to this su-

pervision mode except the following:1. Reclaimable import waste materi-

als, including copper scrap(tariff number 7404), aluminum scrap(tariff number 7602), steel scrap(tariff number 7204), waste plastics(tariff number 3915), waste paper(tariff number 7602)etc;

2. Transit cargo;3. Tariff-surcharged cargo of process-

lars, can apply to the competent customs for nationwide facilitative measures for customs clearance.

2. Enterprises with the following con-ditions may apply to the customs authori-ties in Guangzhou Customs surveillance zone applicable to one or more regional measures to facilitate customs clearance procedures:

a. the high-tech enterprises with credit for category A, which registered with Guangzhou Customs as well as with annual export volume more than 10 million U.S.

dollars and no smugglings and violations within six months.

b. the non-high-tech enterprises with credit for category A, which registered with Guangzhou Customs as well as with annual export volume more than 50 million U.S. dollars (with annual export volume more than 10 million U.S. dollars in the district of Shaoguan, Qingyuan, Zhaoqing, Chonghua, Huadu, Gaoming, Sanshui, Luoding and Yunfu) and no smugglings and violations within six months.

c. the enterprises with credit for cat-

egory A and to whom the government gives emphasis to support.Ⅳ. How does the enterprise granted for convenient and quick customs clearance go through customs formalities?

Guangzhou Customs specially sets up “to facilitate customs clearance” window at the customs scene. The enterprise granted for convenient and quick customs clearance can go through customs formalities directly in the window in advance.

Guangzhou Customs Guide to “Local Declaration & Port Clearance”

ing trade for home use and, deep-processing cargo cleared for home use;

4. Cargo excepted by other regulations.Ⅳ. Procedurea. Import

1. After the person in charge of the means of transport or his/her agent has fin-ished the customs clearance for the means of transport upon arrival of the cargo to the airport or dock, the declarant could input the code of the competent customs to send it an electronic declaration form. Except the enterprises applicable to the facilitative mea-sures, other enterprises that need to declare before the arrival of the cargo could input the code of the competent customs and send an electronic declaration form only when the data of the means of transport is sent in advance and confirmed by the port customs.

2. After the electronic declaration form is checked and released, the declarant shall submit the paper declaration form and go through relevant procedures at the compe-tent customs.

3. The owner of cargo or agent goes through the formalities of examination and release at the port customs. The customs decides whether the cargo is to be checked or not on the base of risk analysis. If not, the cargo is released directly.b. Export

1. After the cargo arrives at the port and gets the proof of optimum arrangement, declarant shall input the code of competent customs and send it an electronic declaration form. The enterprises applicable to the facil-itative measures or approved by the customs could send the form in advance.

2. After the electronic declaration form is checked and released, the declarant shall submit the paper declaration form and go

through relevant procedures at the compe-tent customs.

3. The declarant goes through the for-malities of examination and release at the port customs. The customs decides whether the cargo is to be checked or not on the base of risk analysis. If not, the cargo is released directly.Ⅴ. Provision on submitting the form

1. The form-receiving counter of the competent customs takes charge of the in-spection of documents(such as the paper dec-laration form, contract, invoice, packing list, licensing documents, certificate of origin, etc).

2. The documents that could only be handled at the port customs (such as bill of entry) should be submitted to the customs when going through the examination and releasing formalities.Ⅵ. Amendment and cancellation

The amendment and cancellation of the declaration form should be applied to the competent customs.Ⅶ. Examination and release

After submitting the paper document to the competent customs, if the declarant receives an examination notice, he/she could go through the formality of examination by himself/herself or by an agent; the cargo whose owner doesn’t receive such a notice is released directly at the post customs.Ⅷ. The issue of certified customs declaration form

After the cargo is examined and cleared, the declarant could apply to the competent customs for issuing certified cus-toms declaration form.

(Source: China Customs)

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Ancient, but longing to be modernIn most people’s eyes, Xi’an, the capi-

tal of Shaanxi, a province in western Chi-na, is an alias for “Ancient China”, which is also what Patricia from Arizona, U.S., who was sitting next to me on my Xi’an flight thought as well. “My husband and I managed to spend one precious day there in our busy China trip schedule, just to have a look at the great Terra Cotta Warriors,” Patricia’s eyes were glimmering as we set off flying towards history. The Terra Cotta Warriors are the masterpiece of the First Qin Emperor, whose dynasty dates back to BC 221 - BC 207. Actually, I would prefer to refer to the city as “Chang’an”, which used to be the city’s name in the Tang dynasty (AD 618 - 907) when it served as China’s capital during the most prosperous period in ancient Chinese history.

The pride of the Tang dynasty can be felt just walking along the street in Xi’an, and strongly proven at the Shaanxi History Museum, where a large percentage of exhib-its are focused on displaying the history of the Tang dynasty. The provincial museum is free for anyone who brings their ID, and is also famous for its long queue. “You’d better get up early tomorrow to visit the museum,” the taxi driver offered me this kind sugges-tion when I took her taxi one afternoon and told her I would like to go to the museum. And here is another useful tip, you should bring some food and water, at least enough for the two hours waiting in line before get-ting a precious ticket. The closing time of the museum is 4:30 pm, however, it is highly likely that by 2:00 pm today’s visitor capac-ity has already been reached. A Xi’an boy chatted with his female friend while killing time in the long queue, “A free museum is

Shaanxi Impressions

By a7

the best kind of promotion for a city. More people will come to visit, and it will be-come a more modern city, like Beijing and Shanghai.” While the girl nodded her head in agreement, I began to notice that a sudden shift from the ancient to the modern had se-cretly happened. Xi’an is now eager to show its ancient charm, but in a modern way.

You can enjoy the ancient City Wall that surrounds the central part of Xi’an, the largest and most complete city wall that has survived in China, and at the same time you will find elsewhere long temporary walls with subway construction going on behind them. “Go see how terrible the traffic jam is during the peak hours!” A local Xi’an girl sitting next to me on the bus nearly jumped, when I argued that Xi’an should not build a subway, due to the concern that too many national treasures may be buried under these historic grounds, which would be possibly damaged by digging. “It is a vital symbol that a modern city have subway transporta-tion. Look at examples like New York and Paris, or even Beijing and Shanghai,” the girl’s response further confirmed the un-doubtedly developing trend. Though there is still a question mark hovering over my head, “Is it really so important to label the city ‘modern’ by constructing a spider network of subways?” I can tell you that for the peo-ple who live in this ancient city, everyone’s eyes are looking to march ahead towards modernization.

Busy because of taste“I like the city. It’s nice to find that so

many people are still enjoying their lives so late at night.” Triback, a Moroccan reporter said in a quiet smile, while walking along the Big Wild Goose Pagoda Square. Life is hustle and bustle in harmony and there is a

simple happiness here. “Why not go to the 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 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 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 didn’t stop eating the rice until there was none left.

My farewell visit to the Mosque street saw the same busy night, crowded by people and vehicles all around. “I’ll surely be back to Xi’an again,” Westley, my venture-taking-mate this time, a Beijinger in Xi’an on a business trip, smacked his lips and said, “The brochette here is so impressively tasty that it’s the best I have found in China! And, guess what, I ate 69 brochettes last night! Oh, don’t open your mouth so wide. It’s no big deal when good appetite meets delicious food.”

Hospitality kills lonelySince I was born lacking a sense of

direction, the first thing I’ll rush to do when arriving in a new place is looking for a map, and clearly marking the location of my hotel, as well as my scheduled visiting destina-tions, and other interesting spots. Without a map (or a GPS) in hand, I’d probably get lost in the city! Common sense tells me that each newspaper and magazine booth on every street corner sells a Chinese version of the city map, which usually costs between 3 to 6 Yuan, depending on print quality. However, where could I find an English copy, I won-dered.

First, I asked help from an Australian, Patrick, who owns a business in Xi’an, I thought surely he must know the easiest way to get an English map. To my disappoint-ment, “Sorry, I don’t know. I never had the need to read a map here,” was his answer. I had to set out on my adventure alone, without a map. With the guidance from a hospital bus-ticket selling conductor, I was informed that the biggest bookstore in the city was near the Bell Tower, and that there was a possibly that they would have one.

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Totally blind as to where I was, I insisted on moving only by bus and on foot, though it was a challenge it allowed for real explora-tion of the city.

“No, you can’t walk there. It’s too far away. You’d better take bus number... Wait a minute...” A kind sales girl at a bakery an-swered my question of where the bookstore was while ringing up the bill for me. She also needed to check with another colleague in the little shop, ensuring that the highest quality she can offer to me was not only the cake. “Yes, bus number 26 will take you there,” she said as sweet as the cookies in her hand. By asking for directions at each intersection, I finally found the bookstore, which indeed had an English map of the ancient city, 8 Yuan. However, on my arrival at the bookstore, I suddenly realized why a map is not a necessity for Patrick, as every-one here makes an effort to help you with their best.

Luxurious, but not self-paidAfter a few hours’ drive from Xi’an,

with constant bumped up and down along the Qinling Mountain roads, a reporters’ team and I came to a developing county in southern Shaanxi, according to the schedule, and we finally stopped in front of a brand new, and very luxurious, villa-style hotel where we would stay for the night. The vast hotel is a part of a chain restaurant and hotel group, the owner of which also oper-ates businesses in downtown Xi’an, and is closely connected with local governments.

From the hotel’s unique view (built upon the Qinling Mountain), lavish decora-tion (a separated shower and bathtub in each standard room), expensive price (double that of hotels in downtown Xi’an, yet still so far away), we all concluded that it was definitely a shinny 6 star hotel, before the official es-timation had been made. It’s a reflection of human brilliance and intelligence to build such a castle as this in the half-air (actually half mountain), but who will really come to stay here, as few tourism resources are nearby, I can’t stop wondering. The answer seemed obvious that it won’t be common tourists.

However, when we were told that 26 officials from the local county were also staying in the hotel in order to offer a more convenient channel for us to get information, a sudden stroke of wisdom struck my head. “Yes, it is they that would pay the bill. They are the target clients of this luxurious hotel,” a little voice in my heart pondered. The scale of the local officials’ group was so large that the arrangement of special 1-on-1 interviews for the entire team of reporters could be achieved, but of course no one would bother to knock the door of their hotel rooms and raise questions to these unknown officials. Maybe we just need an excuse to relax our-selves without feeling guilty, but I still can’t stop thinking, “Do the taxpaying citizens really know that a part of their money paid

was spent on some unnecessary luxury un-der this or that title?”

Expensive but have to payThe next day, the agenda said we

would go to a housing project built by another local county government, a perma-nent residence for the peasants who used to live high up on Qinling Mountain. Differ-ent from the variety of architectural designs I saw earlier coming down the road, all of the houses in the project were all carved in the same style. In this building project, there were 4 rows of houses. Part of the houses behind the first row were still under construction, and the 4th row of houses had only 4 houses, (compared with nearly 20 houses in the first row), which seemed to have a still unknown completion date. Most of the houses were empty that day, with locks on the doors. The local receptionist explained that it was the high season for looking for work outside, and also that it was a busy period for farming. Surely, his explanation can’t cover the fact that some of the finished houses which nobody moved in. “And the removal work (from Qinling Mountain) is still moving along,” he added.

An accidentally at home family, con-sisting of a young couple and their 2 year-old daughter, became the stars of the afternoon, being surrounded by a group of talkative media servants. The young mother sup-plied some data: the government subsidy for moving in, RMB 2,000 per capita; the commercial price of the house, RMB 1,500 per square meter; and the maximum sal-ary of her husband if he works on a stone-explosives team during the busy season (what is locally the most popular career), around RMB 2,000 per month. I began to calculate how long they would have to pay off all the money that they had borrowed for these 70 square meters.

The family is not used to applying for loans from a bank, but feels it is more easy and reliable to turn to their relatives and friends. After obtaining friendly financial aid with zero or little interest, they seemed to be able to live like normal urban citizens: paying for the commercial residential build-ing by square meter, paying for electricity according to the meter, paying for running water, but they still keep raising their favor-ite hens and cocks in their small backyard. Compared with the average local purchas-ing ability and generally low incomes, I assumed that it would be much cheaper to build a house by themselves, rather than buying cement square meters from the local government and real estate companies. “But we don’t have any land possessions here. What we have is up on the mountain, and now that area is completely wild. Some of the residents still live there, since they are used to that lifestyle and it costs less, despite of taking the risk of mudslides,” the young woman argued. To move or not to move, that really is a question.

Have fun in the show time!To call it a successful trip, a big confer-

ence was often in need as a ceremony. The hosts of the conference were very excited and nervous as well, because the audience in attendance was much larger than they had expected, and the meeting room lacked enough space and chairs to go around. (Ac-tually, this is a common phenomena in Chi-na, never enough.) Crowded in a room filled with black-haired heads, some of which were grey and golden, the opening address was welcomed with loud applause.

Then a dizzying storm of flashing lights and spotlights followed. Photographers and journalists were busy taking pictures of the VIP speakers that day. All kinds of cameras were lifted high and focused close attention on the speakers. It was a physical work as “few speakers know how to cooperate with the lens. They seldom raise their eyelids, as they are always concentrating on reading the paper draft in their hand,” explained by a veteran.

Video-takers were luckier as they didn’t have to seize the precious few chances of capturing the VIPs’ smiles, instead the re-cord made by two or three video cameras at different angles would do the job for them. “Leave the work to the machines,” they said.

Speeches at the conference were usu-ally not attractive enough to capture the non-stop 2 to 4 hours of the audience’s attention (some kind conferences may have a teatime break in the middle of half day schedule). Also, some speakers just didn’t know when to stop. Their lectures in a monotone voice turned into cradlesongs for the ears of some tired audience members, who forgot where they were and fell into sleep.

But the most interesting sight came near the end. As usual, a kind of agreement or contract signing ceremony would be or-ganized as a symbol of a successful closing. Red velvet tablecloth, documents in duplicate, signatures exchanged, handshakes with bright smiles, champagne celebration with toasts, and of course, another round of even more fierce camera light flooding the room. A hu-man wall formed very close to the front desk, consisting of a large journalist group from known and unknown media organizations, the friends, colleagues or relatives of anyone who was standing on the stage, and a handful of secret fans of any of those VIPs in front.

It could have been a cheerful perfor-mance, but one without an actual audi-ence. All that the patiently waiting and energetically-awake audience could see was the shape of the back of that airtight human wall. Either that they didn’t care at all, and were already dreaming about something else far far away.

(The views expressed here are those of the author and do not neces-sarily reflect those of CFT or any other organization.)

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Chapter 3 Detainment upon Application

Article 15 Where an IPR holder requests the Customs to detain the goods suspected of infringement, it/he shall pro-vide a guarantee equivalent to the value of the goods to Customs within the time limit prescribed by the Customs.

Article 16 Where an IPR holder submits an application that is not in com-pliance with the provisions of Article 14 herein or it/he fails to provide the guaran-tee in accordance with the provisions of Article 15, the Customs shall turn down its/his application and notify the IPR holder in writing.

Article 17 Where the Customs detains the goods suspected of infringe-ment, it shall notify the IPR holders in writing of the name, amount and value of the goods, the name of the consignees or consigners, the date of declaration of im-port or export, the date of detainment by the Customs.

The IPR holders may inspect the goods detained by the Customs upon ap-proval of the Customs.

Article 18 Within 20 working days from detainment of the goods suspected of infringement, the Customs shall give

assistance if it receives the written notice on assistance to detain relevant goods by the People’s Court; if it does not receive the detainment assistance notice of the People’s Court or the IPR holder request it to release the relevant goods, it shall release the said goods.

Article 19 Where the Customs detains the goods suspected of infringe-ment, it shall send the detainment voucher of the detained goods that suspected of infringement to the consignees or con-signors.

The consignees or consignors may in-spect the goods detained by the Customs upon consent of the Customs.

Article 20 Where consignees or consignors request release of their goods suspected of infringing any patent right and detained by Customs in accordance with Article 19 of the Regulations, they shall file a written application and pro-vide a deposit equivalent to the value of the goods to the Customs.

Where the consignees or consign-ors request the Customs to release their goods suspected of infringing any patent right, the Customs shall release the goods and notify the IPR holder in writing in compliance with the provisions of the preceding paragraph.

Regulations of the People’s Republic of China on Customs Protection of Intellectual Property Rights (Part II)

easuresof the General Administration of Customs

of the People’s Republic of China for Implementing the

The IPR holder that files a lawsuit concerning patent infringement dispute with the People’s Court shall submit the copy of the case acceptance notice of the People’s Court to the Customs within 30 working days from the date of receipt of the written notice of the Customs ac-cording to the provisions of the preceding paragraph.

Chapter 4 Investigation and Treatment according to Functions and Powers

Art icle 21 The Customs shal l implement administration and supervi-sion on the imported and exported goods. If it finds any imported or exported goods involve any IPR filed at the GAC and the use of relevant IPR of the importer or ex-porter or manufacturer has not been filed at the GAC, it may require the consigners or consignees to declare the conditions of IPR of their goods and submit relevant certification documents within the pre-scribed period.

If the consignees or consignors fail to declare the conditions of IPR of their goods and submit relevant certification documents in accordance with the provi-sions of the preceding paragraph, or the Customs has reasons to believe the said

The Measures of the General Administration of Customs of the People’s Republic of China for Imple-menting the Regulations of the People’s Republic of China on Customs Protection of Intellectual Property Rights discussed and passed at the executive meeting of the General Administration of Customs (GAC) on Feb. 17, 2009 is hereby promulgated, which take effects on July 1, 2009. The Measures of the Gen-eral Administration of Customs of the People’s Republic of China for Implementing the Regulations of the People’s Republic of China on Customs Protection of Intellectual Property Rights promulgated by No. 114 Decree of the GAC on May 25, 2004 shall be repealed simultaneously.

65

goods are suspected of infringing the IPR filed at the GAC, it shall suspend release of the said goods and notify the IPR hold-er in writing.

Article 22 IPR holders shall give a reply in accordance with the following provisions within 3 working days upon receipt of the written notice of the Cus-toms prescribed in Article 21 herein:

(1) If believing the relevant goods infringe their IPR filed at the GAC and requesting the Customs to detain the said goods, they shall submit the written ap-plication for detaining the goods suspect-ed of infringement and provide guarantee according to Article 23 or 24 herein; or

(2) If believing that the relevant goods have not infringed their IPR filed at the GAC, or not requesting the Customs to detain the goods suspected of infringe-ment, they shall give a written statement of the reasons thereof to the Customs.

The IPR holders may inspect the rele-vant goods upon consent of the Customs.

Article 23 The IPR holders that request the Customs to detain the goods suspected of infringement in accordance with Item 1 of Paragraph 1 of Article 22 herein shall provide guarantee to the Cus-toms according to the following provi-sions:

(1) If the value of the goods is less than RMB 20,000, a guarantee equivalent to value of the goods shall be provided;

(2) If the value of the goods is be-tween RMB 20,000 and RMB 200,000, a guarantee at the value of 50% of the goods shall be provided and the amount of the guarantee shall be no less than RMB 20,000; or

(3) If the value of the goods exceeds RMB 200,000, a guarantee of RMB 100,000 shall be provided.

The IPR holders that request the Customs to detain the goods suspect of infringing the special use right of their trademarks in accordance with Item 1 of Paragraph 1 of Article 22 herein shall provide an overall guarantee to the GAC according to Article 24 herein.

Article 24 The IPR holders with their special use right of trademarks filed at the GAC may submit to the GAC the letter of guarantee issued by a bank or a non-bank financial institution upon ap-proval of the GAC to provide an overall guarantee for their application for Cus-toms protection measures for their special use right of trademarks.

The amount of the overall guarantee shall be equivalent to the sum of expenses of warehousing, safekeeping and disposal of the goods suspected of infringement that the IPR holders applied to the Cus-toms for detainment in the previous year. If the IPR holders have not applied to the Customs for detaining any goods sus-pected of infringement or the expenses of warehousing, safekeeping and disposal

were less than RMB 200,000 in the previ-ous year, the amount of the overall guar-antee shall be RMB 200,000.

The IPR holders that request the Customs to detain the imported or ex-ported goods suspected of infringing their special use right of trademarks filed at the GAC according to Article 16 of the Regulations from the date of use of their overall guarantee approved by the GAC to Dec. 31 of the year do not need to pro-vide any guarantee separately, unless the IPR holders fail to pay relevant expenses according to Article 25 of the Regulations or bear liability of compensation accord-ing to Article 29 of the Regulations and the GAC issues the notice on performance of guarantee liability to the guarantors.

Article 25 Where an IPR holder submits an application according to Item (1) of Paragraph 1 of Article 22 herein and pro-vides the guarantee according to Article 23 and 24 herein, the Customs shall detain the goods suspected of infringement and notify the IPR of the same in writing. If the IPR holder has not filed any application or pro-vide the guarantee, the Customs shall release the goods.

Article 26 The Customs that has detained the goods suspected of infringe-ment shall send the detainment voucher for the detained goods suspected of in-fringement to the consignees or consign-ors.

The consignees or consignors may in-spect the goods detained by the Customs upon consent of the Customs.

Article 27 The Customs shall , after detaining the goods suspected of in-fringement, conduct investigation on the said goods and other relevant situations. The consignees or consignors and IPR holders shall give assistance in Customs investigation and provide relevant infor-mation and evidences truthfully.

The Customs that conducts investiga-tion on the goods suspected of infringe-ment may request the competent IPR de-partment to provide consulting opinions.

Where the IPR holder and the con-signees or consignors reach an agreement on the goods suspected of infringement, provide a written application with the relevant agreement attached and request the Customs to release the said goods, the Customs may terminate its investiga-tion unless it holds there is any suspected crime.

Article 28 Where the Customs conducts an investigation on the goods suspected of infringement while failing to confirm whether the goods infringe the relevant IPR or not, it shall notify the IPR holder and the consignees or consignors in writing within 30 working days upon detainment of the said goods.

Where the Customs fails to confirm whether the goods infringe the relevant IPR or not, the consignees or consign-

ors may request the Customs to release the goods after providing a guarantee equivalent to the value of the goods. If the Customs agrees to release the said goods, it shall handle the issue according to the provisions of Paragraph 2 and 3 of Article 20 herein.

Article 29 Where the Customs fails to confirm whether the relevant goods in-fringe the IPR of the IPR holder, the IPR holder may apply to the People’s Court for taking measures for ordered termination of infringement or property preservation according to Article 23 of the Regulations.

The Customs that has received the written notice of the People’s Court on assistance in detaining the relevant goods within 50 working days upon detainment of the goods suspected of infringement shall give assistance. If the Customs has not received the notice of the People’s Court on assistance to detainment or the IPR holder request the Customs to release the relevant goods, the Customs shall re-lease the said goods.

Article 30 Where the Customs has made the decision on confiscating the infringing goods, it shall notify the IPR holder of the following information that is known in writing:

(1) The name and amount of the in-fringing goods;

(2) The name of the consignees or consignors;

(3) The declared import or export date of the infringing goods, the date of the detainment by Customs and the date when the punishment becomes effective;

(4) The leaving and arrival places of the infringing goods; and

(5) Other information concerning the infringing goods that the Customs may provide.

If the People’s Court or the competent IPR department need the assistance of the Customs in obtaining any evidences rel-evant to the imported or exported goods when handling the infringement disputes of the parties concerned, the Customs shall give assistance.

Article 31 In case the Customs finds any articles carried or mailed in or out the border by an individual are sus-pected of infringing the IPR as prescribed in Article 2 of the Regulations and be-yond the personal use and the reasonable amount, it shall detain such articles, un-less the passenger or receiver or sender announces abandonment to the Customs with consent by the Customs.

The IPR holder shall give assistance when the Customs is conducting investiga-tion on the infringing articles. If the in-ward/outward passengers or the receivers or senders of posts believe their articles de-tained by the Customs do not infringe the relevant IPR or are for personal use, they may give a written statement thereof to the Customs and provide relevant evidences.

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Article 32 Where the impor ted or exported goods or entering or exist-ing articles have infringed any IPR as confirmed by the Customs through inves-tigation, such goods or articles shall be confiscated by the Customs in accordance with the provisions of Paragraph 1 of Ar-ticle 27 and Article 28 of the Regulations, while if it is impossible to find out the parties concerned, the Customs may con-fiscate the said goods or articles 3 months from the date of announcement by the Customs.

Where the impor t and expor t in-fringement practices are suspected of any crime, the Customs shall transfer the case to the public security authority.

Chapter 5 Disposal of Goods and Expenses Thereof

Article 33 The Customs shall accord-ing to the following provisions dispose with the infringing goods confiscated:

(1) If the relevant goods may be di-rectly used for public welfare undertak-ings or the IPR holder intends to purchase them, the goods shall be transferred to the relevant public welfare institutions for public welfare undertakings or to the IPR holder with compensation;

(2) If the relevant goods cannot be handled according to the preceding para-graph and their infringement features may be removed, they shall be auctioned according to law after elimination of the infringing features. The proceeds from auction of such goods shall be submitted to the treasury; or

(3) If the relevant goods cannot be handled according to the preceding two paragraphs, they shall be destroyed.

The Customs shall solicit opinions from the relevant IPR holder before auc-tion of the infringing goods. The IPR holder shall give necessary assistance to the Customs in destroying the infringing goods. Where the relevant public welfare institutions use the goods confiscated by the Customs for public welfare under-takings or the IPR holder receives the entrustment of the Customs to destroy the infringing goods, the Customs shall con-duct necessary supervision.

Article 34 Where the Customs as-sists the People’s Court in detaining the goods suspected of infringement or re-lease the detained goods, the IPR holder shall pay the expenses of warehousing, safekeeping and disposal of the goods during their detainment at the Customs.

Where the Customs confiscates the infringing goods, the IPR holder shall pay the expenses of warehousing, safekeeping and disposal of the goods according to the actual storage time of the said goods after detainment by the Customs. If the Cus-toms fails to dispose the infringing goods within 3 months upon sending of its deci-sion on confiscation of the goods to the

consignees or consignors and such failure is not due to the application of adminis-trative reconsideration or filing of admin-istrative proceedings by the consignees or consignors, or other special reasons in the respect of disposal of goods, the IPR holder is not required to pay the relevant expenses 3 months later.

Where the Customs auctions the in-fringing goods in accordance with Item (2) of Paragraph 1 of Article 33 herein, the expenses for auction shall be handled according to the relevant provisions.

Article 35 Where an IPR holder fails to pay the relevant expenses in ac-cordance with Article 34 herein, the Cus-toms may deduct the relevant expenses from the deposit provided by the IPR holder or require the guarantor to perform its/his liability of guarantee.

If the Customs confiscates the in-fringing goods, it shall return the deposit to the IPR holder or release the guarantee liability of the guarantor after disposal of goods and settlement of relevant expens-es.

W here the Customs assis t s t he People’s Court in detaining the goods suspected of infringement, or release the detained goods in accordance with Items (1), (2) and (4) of Article 24 of the Regulations, the consignees or consign-ors may apply to the People’s Court for property preservation of the guarantee provided by the IPR. Where the Customs fails to receive the execution assistance notice of the People’s Court on adopting property preservation measures against the guarantee provided by the IPR holder within 20 working days after the Customs assisted the People’s Court in detaining the goods suspected of infringement or released the goods, the Customs shall return the deposit to the IPR holder or release the guarantee liability of the guar-antor. When receiving the execution as-sistance notice of the People’s Court, the Customs shall give assistance.

Article 36 Where the IPR holder submits the copy of the case acceptance notice of the People’s Court to the Cus-toms in accordance with Paragraph 3 of Article 20 after the Customs has released the detained goods that are suspected of infringing any patent right in accordance with the provisions of Article 19 of the Regulations, the Customs shall dispose with the deposit of the consignees or con-signors in accordance with the decision of the People’s Court. If the IPR holder fails to provide the copy of the case acceptance notice of the People’s Court, the Customs shall return the deposit submitted by the consignees or consignors. With respect to the guarantee provided by the IPR holder to the Customs, the consignees or con-signors may apply to the People’s Court for property preservation. If the Customs fails to receive the execution assistance

notice of the People’s Court on adopting property preservation measures against the guarantee provided by the IPR holder, it shall, after 20 working days since the disposal of the deposit submitted by the consignees and consignors, return the deposit to the IPR holder or release the guarantee liability of the guarantor. If the Customs receives the execution assistance notice, it shall give assistance.

Chapter 6 Supplementary Provisions

Article 37 The Customs shall pro-tect the symbols of Olympics and World Expo by reference to the provisions here-in.

Article 38 The “guarantee” herein refers to deposits and the letter of guaran-tee of banks or non-bank financial institu-tions.

Article 39 The value of the goods herein shall be checked and determined by the Customs on the basis of the strike price of the goods. If the strike price can-not be determined, the value of the goods shall be estimated by the Customs ac-cording to law.

Article 40 The written notice of the Customs as prescribed in Articles 17, 21 and 28 herein may be served by direct giving, mail, fax or other means.

Art icle 41 The t ime l imit pre-scribed in Paragraph 3 of Article 20 and Paragraph 1 of Article 22 herein shall be calculated from the following day of the date of service of Customs’ written no-tice. The deadline of the time limit shall be determined according to the following provisions:

(1) Where the IPR holder submits documents or guarantee to the Customs through post office or bank, the deadline shall be 24:00 on the date due, and

(2) Where the IPR holder directly submits documents or guarantee, the deadline shall be the end of the working hour of the Customs on the date due.

Article 42 IPR holders and the consignees or consignors that submit the copies of the relevant documents in accordance with the provisions herein shall check the said copies with the originals, and add the term of “identical with the original” on the copies and sign on them.

Article 43 These Measures shall enter into force on July 1, 2009. The Measures of the General Administration of Customs of the People’s Republic of China for Implementing the Regulations of the People’s Republic of China on Cus-toms Protection of Intellectual Property Rights promulgated by No. 114 Decree of the GAC on May 25, 2004 shall be re-pealed simultaneously.

The General Administration of Customs

March 3, 2009

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对话 Dialogue

生词 Vocabulary

打电话（一）Make A Call Ⅰ办公室内，王经理正在拨电话，可是对方的电话一直

占线。In the office, Manager Wang is dialing the telephone, but

the line is always busy. 对方：喂？Speaker A at the other end: Hello!王经理：喂！你好！请问是中美贸易公司吗？Manager Wang: Hello, is that China-US Trade Company? 对方：打错了。Speaker A at the other end: Sorry, you dialed the wrong number. 王经理：哦，对不起。Manager Wang: Oh, I am sorry.

（挂电话，重新拨）(Wang hung off and redialed.) 丽丽：中美贸易公司，您好！Lily: Hello, China-US Trade Company.

王经理：你好！请问大卫在么？Manager Wang: Hello! May I speak to David? 丽丽： 他现在不在。您哪里？Lily: He is not here now. Who’s calling? 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？Manager Wang: It is Wang Xin calling from Zhejiang factory.

I’ve got something urgent to tell him, so how could I find him?

丽丽：您可以打他的手机，号码是138-1234-5678。Lily: You could call him and his mobile phone number is 138- 1234-5678.王经理：我重复一遍：138-1234-5678，对吗？Manager Wang: I repeat it now, 138-1234-5678. Is this right? 丽丽：对。Lily: Yes, it is. 王经理: 谢谢！Manager Wang: Thanks.

对方 duìfāng N speaker A at the other end 喂 wèi Int. hello 打 dǎ V dial错 cuò Adj. wrong 重新 chóngxīn Adv. again 拨 bó V dial 急 jí Adj. urgent手机 shǒujī N mobile phone 号码 hàomǎ N number重复 chóngfù V repeat

选择填空Fill in the blanks with appropriate phrases. 1. A:喂，你好，是长安商场(Chang’anMall)吗？

B:不是，_______了。

2. A:喂，请问李明在吗？

B:不在，_____了。

3. A:你怎么不给我打电话？

B:我打了好几次，可是一直____。

4. 王新想和大卫说件急事，可是找不到他。后来，丽丽

告诉他可以______，并给了他电话号码。

5. 丽丽拨错电话号码了，她_______，重新打。

短语 Phrases 打电话 make a call 拨电话 dial the phone number 回电话 answer the phone 打手机 call one’s mobile phone 挂断电话 hang off the phone 打错电话 call the wrong number 占线 the line is busy 打不通 unable to get through

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。一般公务电话，接听的人会先报出本单位或本公司的名称：“这里是……”。

In China, the people that answer the phone usually would not speak out his/her own name, but business calls would be answered with the name of a firm or unit, starting with “这里是……”.

接电话的人如果想知道对方的名字和身份，会用“您是哪位”或“您哪里”来礼貌的询问，一般不用“你是谁”这样的表达方式。If the people answering the phone want to know who he/she is speaking to, polite expressions such as “您是哪位”or“您哪里”could be used, instead of “你是谁”.

参考答案 Reference answer 1打错（电话）2打错（电话）3占线/打不通

4打手机5挂断电话

CH

INESE tIPS

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terprise Reform & Development Society and “Fujian Famous Brand “by Fujian Provincial government, P.R.China.

Our products are bestsellers not only in many European countries and Ameri-ca but in the Middle East and south East Asia as well. In addition, the stone ma-terials for the construction of Jinggang mountain cadre institute provided by us have been rewarded as “Hua biao Cup” in the first nation high quality stone ma-terial engineering. We have won decent reputation owing to the excellent quality and service.Contact Person: Aaron LinTel: 0086-592-5107919Fax: 0086-592-5107976Post Code: 361000Email: lxstone@lxstone.comWebsite: www.green-sino.com

Company Name: Xinyu Bamboo Indus-try Co., LtdCompany Profile: Chishui Xinyu Bam-boo Industrial Co., Ltd is located in the his-toric beauty-chishui City, Guizhou province China. And take up an area of 36800 square meters; we have 600 employees includ-ing 98 technical staff. We are professional maunfacturer of bamboo products. Mainly covers bamboo flooring, bamboo chopping board, bamboo furniture, bamboo door, bamboo panel, bamboo veneer, bamboo handicraft, bamboo chopsticks etc.

We obt a ined the ce r t i f icate of ISO9001:2000 quality control system in October 2005 and our products have been exported to Europe, America, Japan, southeast Asia etc, over about 18 coun-tries. Our management tenet is: quality foremost, reputation foremost, time and service foremost, and we will do our best to serve our customers.Contact Person: Frank LiTel: 0086-023-67876228Fax: 0086-023-67725205Post Code: 400020Email: frong518@163.comWebsite: www.xinyubamboo.com

Company Name: Quanzhou Huayan Stone Co., LtdCompany Profile: Guangyan Group is a professional organization who have been engaged on stone manufacture and export for more than ten years, we are specializing in countertops, vanity tops, kitchen tops, tile, slabs, stairs, sinks, tubs, paving stones, tombstones, Fireplace mantels and mosaic.

Our group has total seven aff ili-ated branches in home and abroad. They are Quanzhou Huayan Stone Co., Ltd, Quanzhou Guangyan Slabstone Craft Co., Ltd, Quanzhou Guangyan Hongda

Company Name: Anhui Arts & Crafts imports & Export Co., LtdCompany Profile: Business scope: Glassware, Ceramics, Aertex, Textiles and Garments, Gifts, Special arts and crafts, Daily-use items, toy, Footwear and Headwear, Furniture, Electrical applianc-es, IT product, Starsports good, General Merchandise, Plastics, Hair Ornament, flooring.Contact Person: Zhang HongTel: 0086-551-2826133Fax: 0086-551-2823345Post Code: 230061Email: aacc@mail.hf.ah.cn

Company Name: Xiamen Further Stone Co., LtdCompany Profile: XiaMen Further Stone Company is located in XiaMen City FuJian Province-China Granite Home Town. It has been build since year 1990. The Import and Export business line was on the center of XiaMen City. It is only 5km far from XiaMen GaoQi International Airport. In our Office have more than 15 peoples speak difference Language, Eng-lish, French, German, and Spanish to do the imported and exported work.

We have two own factories for stone products. The older and bigger one is located in HuiAn Town. It had more than 200 workers there. It is in specialize pro-ducing Stone carving and Tombstones, Like Fireplace, garden furniture, Sinks and Europe style tombstones. The stone materials can be Granite, Marble, Sand-stone, and Slate Onyx.

Another one is located in NanAn town. It is for making building materials. It has more than 100 workers there. They are in specializing making the granite and marble slabs, countertops, tiles and Paving.

We have 20 professional technol-ogy People, they manage and control the quality strictly. Let our products are fin-ished. More and more perfect! Let them sell well in all over the world. Our com-pany had high prestige during the stone business line. Credit and first quality is our first way to put our goods stand on the world. Favorable manage is made our price keep very competitive. Contact Person: MichelleTel: 0086-592-5107518Fax: 0086-592-5107528Post Code: 361000Email: michelle@xdstone.comWebsite: www.xdstone.com

Company Name: Jinjiang Lianxing Stone Carving & Materials Co., LtdCompany Profile: Jinjiang Lianxing Stone Carving & Materials Co., Ltd, with more than ten years of history, is one of the largest manufacturers and exporters own-ing the right of handling import and export, It is also one of the granites production bases in Fujian province. The company is equipped with skilled staff and advanced facilities insisting on the management of Market Orientation, Customer Satisfaction, and taking lead in passing the ISO9001 (2000) Certification and getting the strictest Certificate of Compliance in this field.

Company owns four quarries of G3533 (G633), G3503 (G603), LX-338 (lianxing white) and LX-801 (tiger skin white) etc. Also G603 and G633 are the national outstanding products tested ac-cording to the Standard of JC518-93 by the Stone Materials Test & Inspection Center of State Building Material Indus-try Bureau.

We have three factories, specializ-ing in a variety of natural granites, such as engineering slabs, wall & floor stones, ultra-thin granites plates, tombstones, fences and other series of stone products, and one office specializing in the busi-ness of export and import, named as Xi-amen Green trade Co., Ltd (www.green-sino.com). We, as well, own the right for importing and exporting granite blocks and slabs, and some other kinds of prod-ucts. A chain of production, technology, sales, and service has been formed.

We emphasize in promoting the modern management pattern, and ex-tending our international and domestic markets, Relying on the good reputation and enlarged scale, our products sell well in cities and metropolis. What’s more, our products are adopted by national em-phasis engineering. In the year of 2001, we were in the first list of becoming one of the hundreds of strongest stone enter-prises in the local area. In 2002, we were rewarded as “China Accredit able ex-porter of building products” by CCPIT.

In 2003, we won Credit Example Certif icate by the P.R.C Ministry of Commerce. In 2006, we won “China Famous Brand “by China Enterprise Re-form & Development Society and “Fujian Famous Brand “by Fujian Provincial government, P.R.China.

Our products are bestsellers not only in many European countries and America but in the Middle East and south East Asia as well. In 2006, we won “China Famous Brand “by China En-

upply info

2009 China Market Suppliers List

69

Stone Industry Co., Ltd, Hongkong New Guangyan Ltd, Singapore Guangyan Pte Ltd, NGY Handels Gmbh in Germany and NGY Stones Enterprise Inc.

Our group headquar ter and our plants are located in the “Hometown of Chinese Stone” - Quanzhou City, where not only you can find all Chinese Stones, but also many famous stones from all over the world, and is about 100 kilo-meters far from Xiamen port who can sail to the worldwide main ports. This excellent geographical location provides us the most convenient transport to any places in the world. Our group’s plants are combined by Quanzhou Huayan Stone Co., Ltd, Fujian Quanzhou Guang-yan Slabstone Craft Co., Ltd, Quanzhou Guangyan Hongda Stone Industry Co., Ltd., which have the advanced produc-tion equipments and scientific manage-ment system in manufacturing various architectural stones, tombstone and sculptures. All products are exported to Southeast Asia, Europe, and America and Middle East countries for more than 40,000 square meters monthly. We have established our branches in Singapore, Germany, the United States, Hong Kong and other countries or regions. Our out-standing marketing networks provide our customers around the world with quality products and convenient services.

Guangyan group has built up the quality management system in accor-dance with the ISO 9001 quality man-agement system standard and has been qualified by the IMS International. We will continue to provide our customers our satisfactory products and considerate services by advanced equipments, scien-tific management and honest services.Contact Person: Charlie GuoTel: 0086-595-22652222Fax: 0086-595-22653333Post Code: 362011Email: Charlie@granite-supplier.comWebsite: www.granite-supplier.com

Company Name: China United Engi-neering CorporationCompany Profile: China United Engi-neering Corporation (CUC) is one of the best engineering corporations in China; it has high comprehensive strength with science and technology as the vanguard, engineering service as the main busi-ness. CUC was founded in Shanghai in 1953, and now the headquarters of CUC is located in the famous scenery city-Hangzhou. CUC currently has more than 2300 employees, among which over 80% are technical personnel, including 1 mem-ber of Chinese Academy of Engineering, 4 state design masters, 2 state exploration masters, 95 experts enjoying special allow-ance of the State Council, over 900 senior engineers (including 191 engineering pro-fessors).

After 50 years development, as the earliest state-level comprehensive engi-neering corporation, CUC has expanded service field into machinery industry, power industry, civil architecture indus-try, environment industry, urban utilities industry, light industry, textile industry, petrochemical industry, electronic in-dustry, military industry, building mate-rial industry, etc. International Business Depar tment (IBD) is the depar tment that deals with international business of CUC, mainly does the job of overseas project marketing and import & export products used in different engineering projects. Depending on the powerful tech-nical capacity and perfect procurement network & price-information system of CUC, the department has distinct trading preponderance in the products correlating to engineering projects, especially in the field of electromechanical products.Contact Person: He YuwenTel: 0086-571-88151991Fax: 0086-571-88153199Post Code: 310022Email: ibd@chinacuc.comWebsite: www.chinacuc.com

Company Name: Hoyon Stone Co., LtdCompany Profile: Hoyon Stone Co., Ltd. is located in Congwu, Huian, Fujian Province, which is traditionally well-known as the “Hometown of Stone Carving” in China. And it’s also the earliest area involv-ing in stone production and international business in China.

Hoyon Stone have engaged in the stone production and t rade for more than ten years. We always stick to offer our customers with our quality products and excellent credit. We have two fac-tories, one is specialized in gravestone production, and another is specialized in all kinds of structure stone and various sculpture products. With our abundant experiences and skillful workers, and our own designers, we are able to offer you all kinds of excellent stone products sta-bly and extendedly.

You are warmly welcomed to visit our company. Any of your inquiries are welcome and would be deal with in a short time. We are expecting to offer you our excellent products and services!Contact Person: Mr. Simon LinTel: 0086-592-5073291Fax: 0086-592-5073290Post Code: 362131Email: nicestone603@hotmail.comWebsite: www.hoyonstone.com

Company Name: Fuzhou Zilong Induc-tion Equipment Co., LtdCompany Profile: ZILONG is one of the Chinese pioneers in making automatic sanitary. Since 1992, Zilong Corporation has always been occupying the leading place and engaged in the research and development of

automatic sanitary’s technology. Our products are Automatic Faucets,

Automatic Urinal Flusher, Automatic Toilet Flusher, Automatic Hand Dryer, Automatic Soap Dispenser, Hair Dryer etc. Zilong Corporation has obtained dozens of national patents and some of its single products are the first to be recognized as water-saving products by China mark CNAB or as green products by GBM. Otherwise, the products have passed ISO, FCC, CE and ROHS testing.

The development, produce and sale of 15 years experience, and spread all over the after-sales service network of the whole country, provided a safe usage a guarantee for the customer. The product sells Europe, the United States, and Mid-dle East and Southeast Asia region etc.Contact Person: Sam LinTel: 0086-591-83820666Fax: 0086-591-83855399Post Code: 350008Email: sam@zilong.com.cnWebsite: www.zilong.com.cn

Company Name: Yantai Lijing Stone Import & Export Co., LtdCompany Profile: Yantai Lijing Stone Import & Export Co., Ltd is one of the lead-ing producers in the field of stone products; the company consists of mining, develop-ing designing, processing of many kinds of limestone, sandstone, granite products. The main products includes: stones and stone carvings for in and out room building. The products ranging from kerbs, pavers, bol-lards, step s to cubes etc. The finishing of them are sawn, chiseled, flamed etc. We can make sculpture for square, garden, road etc. And we also can process products accord-ing to customer’s request, such as polishing, charmfering, digging holes, lettering etc.

We have two factories. One locates in Yantai Shandong Province China, the other locates in Jiaxiang, Shandong Province China. We have advanced equipment in our factories. We can make about 100000 square meters of slabs and about 20000T of kerbstone, pavers, and uncommon products every year. We can export about 800 containers of all kinds of stone products every year. Meanwhile, the company has yellow granite mine and several different colors sandstones mines, including red, yellow, green, gray, purple, purple wood, coffee, etc.

With high quality standard and com-petitive price, its products have a ready market in Europe, North America, Japan and Southeast Asia etc. Contact Person: Bing LengTel: 0086-535-6091855Fax: 0086-535-6084301Post Code: 264000Email: lijing-yantai@hotmail.comWebsite: http://www.lijing-stone.com

(Source:www.chinamarket.com.cn)