Trade Congressional Issue Political and International News Economy Foreign Investments

Trade
Congressional Issue
Political and International News
Economy
Foreign Investments
Energy & Environment
Insurance & Finance
Cross - Straits
General News / US Chamber China Trade & Investment News
July 09, 2008
Trade
July 09: China's coal exports in June 2008 increased the most in more than three years, as traders curbed local sales after the reintroduction of price controls on the spot market. China coal exports rose 84 percent year-on-year to 6.99 million metric tons in May 2008. In the Jan-Jun 2008 period, exports rose 10.2 percent year-to-year to 25.49 million tons.
http://online.wsj.com/article/SB121555286688937121-search.html?KEYWORDS=China&COLLECTION=wsjie/6month
July 09: German automobiles producer Audi AG, the high-end brand within the Volkswagen AG umbrella, said its sales in China for the first half of 2008 jumped 23 percent year-on-year to 60,509 vehicles. Audi ascribes the record sales mainly to the rising demand for its high-end exported models.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=16365
July 09: Commerce finds dumping, subsidization of Off-Road Tires from China.
http://www.chinatradeextra.com/
http://online.wsj.com/article/BT-CO-20080708-710783-search.html?KEYWORDS=China&COLLECTION=autowire/6month
July 08: China's refiners passed up the chance to go on a buying spree in the crude oil market in June 2008 despite uncertainty over whether a tax rebate will be extended into the second half of 2008. China's crude oil imports raised 3.3 percent on-year in June 2008 to 14.57 million metric tons, equivalent to 3.56 million barrels per day.
http://online.wsj.com/article/BT-CO-20080708-716151-search.html?KEYWORDS=China&COLLECTION=autowire/6month
July 08: Italy's clothing and textile makers association called on the European Commission to temporarily limit EU imports of Chinese dresses, pullovers and T-shirts in what could be a replay of the 2005 "bra wars" trade dispute. Imports from China to the EU-27 of women's dresses rose 229 percent in Jan-Mar 2008 from 2007, while the average price fell 30 percent. Imports of women's bras rose 118 percent, and the price fell 21 percent. Imports of T-shirts rose 115 percent while the price fell 31 percent.
http://online.wsj.com/article/BT-CO-20080708-709261-search.html?KEYWORDS=China&COLLECTION=autowire/6month
July 08: China's sales of locally made passenger vehicles in the Jan-to-Jun 2008 period rose 17.07 percent from 2007 to 3.6 million units. The growth in sales slowed from the 22.26 percent rise in Jan-Jun of 2007. The passenger vehicle sales in Jan-Jun included 2.67 million units of passenger cars, up 16.72 percent from the same period 2007; 224,300 sport utility vehicles, up 42 percent; and 111,400 multipurpose vehicles, up 4.09 percent.
http://online.wsj.com/article/BT-CO-20080708-703646-search.html?KEYWORDS=China&COLLECTION=autowire/6month
Congressional Issue
July 09: Manzullo, Hare press for action against dumping, subsidization of Tires from China at ITC.
http://www.chinatradeextra.com/
Political and International News
July 09: French President Nicolas Sarkozy will attend the Beijing Olympics' opening ceremony in August 2008, ending his threat to boycott the event in an apparent attempt to soothe Chinese irritation over French support of Tibet.
http://online.wsj.com/article/SB121558679802338763-search.html?KEYWORDS=China&COLLECTION=wsjie/6month
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aT1xumS.TfIk
http://www.nytimes.com/2008/07/09/world/asia/09sarkozy.html?scp=2&sq=China&st=nyt
http://www.washingtonpost.com/wp-dyn/content/article/2008/07/08/AR2008070802783.html
July 09: German Chancellor Angela Merkel asked Chinese President Hu Jintao to push for a successful outcome to talks between China and Tibet's spiritual leader, the Dalai Lama. "The chancellor said she hoped the dialogue between representatives of the Dalai Lama and the Chinese government will develop in a successful way."
http://online.wsj.com/article/BT-CO-20080709-701292-search.html?KEYWORDS=China&COLLECTION=autowire/6month
July 09: President Hu Jintao denied that the growing demand in developing countries is responsible for rising food prices across the world. This is a baseless accusation and shows the irresponsible attitude of those making it. Hu's remarks came at his meeting with leaders of four other developing countries, India, Brazil, South Africa and Mexico.
http://www.chinadaily.com.cn/china/2008-07/09/content_6829488.htm
July 09: Chinese President Hu Jintao attended the Major Economies Meeting on Energy Security and Climate Change in the northern Japanese resort of Toyako. President Hu is expected to present China's stance on energy security and climate change issues during the meeting.
http://www.chinadaily.com.cn/china/2008-07/09/content_6831755.htm
July 09: China's support to biofuel development has not caused the global food price surge, Zeng Xiao'an, a deputy department director of the Ministry of Finance reiterated while world leaders gathered in Japan to find solutions to rising energy and food prices. He said it is the US that should take the blame for its massive production of fuels from corn and other grains that has pushed up their global prices.
http://www.chinadaily.com.cn/china/2008-07/09/content_6831028.htm
July 09: Chinese President Hu Jintao and Russian President Dmitry Medvedev met in Toyako, northern Japan, to discuss ways of furthering bilateral strategic and cooperative partnership. During the visit, the two sides expressed their determination to give priority to the development of a long-term and steady partnership.
http://news.xinhuanet.com/english/2008-07/09/content_8517225.htm
July 09: China and India led objections by five developing nations to emissions-reductions targets set by the Group of Eight industrial powers, saying a clampdown on fossil fuels would suppress economic growth. An alliance of five developing countries, China, India, Brazil, Mexico and South Africa, declined to accept numerical targets.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=arILXL8xwk54
July 09: Chinese President Hu Jintao met with Indian Prime Minister Manmohan Singh, discussing bilateral relations and global issues such as climate change, energy and food security. He added, China is willing to work with the Indian side to promote cooperation and exchanges in various fields, continuously substantialize the China-India strategic partnership, and advance the stable, sound and long-term development of bilateral relations.
http://news.xinhuanet.com/english/2008-07/08/content_8511607.htm
July 09: Chinese President Hu Jintao thanked US President George W. Bush for his decision to attend the Olympic opening ceremony in Beijing in August 2008, and his opposition to politicizing the event, following talks in which they also discussed human rights, trade and Taiwan.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aFPIBrvLdNFY
July 08: China expressed confidence that the drive to end North Korea's nuclear programs would pick up momentum, as it announced disarmament talks would resume after a nine-month break. Foreign ministry spokesperson Qin Gang said, "We are looking forward to the positive achievements of this meeting of the heads of delegations, so as to promote the ushering of a new stage of the six-party talks process."
http://online.wsj.com/article/BT-CO-20080708-703721-search.html?KEYWORDS=China&COLLECTION=autowire/6month
http://www.washingtonpost.com/wp-dyn/content/article/2008/07/08/AR2008070800671.html
Economy
July 09: China's consumer confidence index dropped in the second quarter of 2008, reflecting an expected cool down in the country's economy. The index fell 0.7 percentage points from the previous quarter to 94.1. The index was also 2.7 percentage points lower than in the same period of 2007.
http://news.xinhuanet.com/english/2008-07/09/content_8516992.htm
July 08: China's economy will overtake that of the US by 2035 and be twice its size by mid century. The report by economist Albert Keidel of the Carnegie Endowment for International Peace said China's rapid growth is driven by domestic demand more than exports, which will be sustainable over the coming decades. Keidel, who has worked as a World Bank economist and U.S. Treasury official, said the rise of China to the world's biggest economy would happen regardless of the method of calculation.
http://online.wsj.com/article/BT-CO-20080708-715606-search.html?KEYWORDS=China&COLLECTION=autowire/6month
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aiYFW1Gf80yw
http://www.china-briefing.com/news/2008/07/09/us-study-china-economy-to-become-worlds-biggest-by-2035.html
Foreign Investments
July 09: Nasdaq-listed AirMedia Group Incorporation, the biggest digital media network in China specializing in air travel advertising, will take over 100 percent of equity in Excel Lead International Limited, and 80 percent in Flying Dragon Media Advertising Company, Limited, or Flying Dragon.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=16370
July 09: China's white goods giant, Haier Group, has formed a strategic partnership with German automaker Mercedes-Benz for producing washing machines. This may turn out to be a big step for Haier to strengthen its competitiveness and brand presence in the global washing machines market.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=16368
July 09: Britain's insurance giant RSA Insurance Group plc announced the launch of its wholly owned subsidiary Sun Alliance Insurance (China) Company Limited in Shanghai. It has become the first European insurer to have a wholly owned arm in the country. The new entity, with a registered capital of $72.87 million, will take over all business of RSA Insurance's existing Shanghai branch.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=16378
July 08: Bank of Baroda, the fifth largest bank in India, has received approval from China's banking authorities to set up a branch in the southern city of Guangzhou. Bank of Baroda is the third Indian bank to open a branch in China, after the State Bank of India and Bank of India.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=16364
July 08: China's State Administration for Foreign Exchange, which manages China's $1.7 trillion in reserves, receives much more assets to manage than the China Investment Corporation (CIC), China's SWF. China's reserves grew by well over $240 billion in Jan-May 2008. Some suggesting the CIC should spin off Central Huijin, the unit that manages its stakes in state banks. Huijin used to be managed by the central bank until it was transferred to CIC.
http://www.rgemonitor.com/26/China
Energy & Environment
July 09: PetroChina Company, the nation's biggest refiner, plans to increase crude processing at its Dalian refinery by 43 percent in the second half of 2008 as more units are expected to become operational later in 2008. The refinery in northern China's Dalian city is scheduled to refine 14.6 million metric tons of crude in 2008.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aHsKrQajtGdU
July 09: Chinese coal miner Yanzhou Coal Mining Company plans to invest in its parent company Yankuang Group Corporation's coal-to-liquid project in China. Yankuang Group hopes to build a factory using its technology in Shaanxi by 2013 with an annual production capacity of 5 million metric tons of oil or around 100,000 barrels a day.
http://online.wsj.com/article/BT-CO-20080709-700074-search.html?KEYWORDS=China&COLLECTION=autowire/6month
July 09: Netherlands' Royal Vopak NV, the world' largest logistics company in independent storage and handling of bulk liquid products, will team up with China's State Development & Investment Communication Corporation to build a $1 billion commercial oil storage facility in China.
http://www.chinaknowledge.com/News/news-detail.aspx?id=16376&cat=IND
July 08: Sinopec Group, responsible for major part of imports of gasoline and diesel in China, received value-added tax (VAT) rebates aggregating $365.8 million in the second quarter of 2008. Subsidies provided by the government on crude oil imports amounted to $1.03 billion.
http://www.infopetro.com/news/viewnews.asp?id=10357
July 08: Oil demand from China is expected to rise by 6.3 percent, or 480,000 barrels a day in the current, third quarter 2008, to 8.07 million barrels a day. According to the Energy Information Administration, demand growth from China, the world's second-biggest oil consumer, will account for near 37 percent of total world oil demand growth in third quarter of 2008.
http://online.wsj.com/article/BT-CO-20080708-709344-search.html?KEYWORDS=China&COLLECTION=autowire/6month
July 08: Beijing's electricity use has hit an all-time high, raising the prospect of serious shortages in China in 2008 as coal supplies at power stations drop to emergency levels. Countrywide power consumption was at its highest level in five years with Beijing alone draining a record 12.03 million kilowatts.
http://online.wsj.com/article/BT-CO-20080708-705588-search.html?KEYWORDS=China&COLLECTION=autowire/6month
Insurance & Finance
July 09: Poly Real Estate Group Company Limited has received regulatory approval on July 04, to issue $626.7 million in five-year fixed interest bonds. This batch of bonds will be issued at face value. Nominal interest rate will be between 6.0 percent and 7.0 percent.
http://www.chinaknowledge.com/News/news-detail.aspx?id=16379&cat=FIN
July 09: China Jianyin Investment Securities Company has acquired controlling stake in Heilongjiang Tianqi Futures Brokerage Company Limited. Tianqi Futures will receive capital injection of $10.2 million from CJIS after the plan wins regulatory approval, raising its registered capital from the previous $7.28 million to $17.49 million. With 80 percent stake in Tianqi Futures, CJIS will become its controlling shareholder after the deal.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=16372
July 09: China's central bank plans to sell up to $5.1 billion worth of three-month bills and up to $2.62 billion six-month bills in its regular open market operation. The planned offering is bigger than the $3.35 billion worth of bills the central bank sold.
http://online.wsj.com/article/BT-CO-20080709-702565-search.html?KEYWORDS=China&COLLECTION=autowire/6month
July 09: Yunnan Aluminum Corporation, China's fourth- largest producer of the light metal, plans to sell $155 million of bonds to fund a new plant and repay bank loans. The bonds are for six years.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aKj7JtaOdAZk
July 09: The People's Bank of China plans to sell six-month bills for the first time in nearly two years during its regular open market operation, possibly signaling its suspension of three-year bond sales because of falling demand.
http://online.wsj.com/article/BT-CO-20080709-700963-search.html?KEYWORDS=China&COLLECTION=autowire/6month
July 08: Two Chinese banks have signed an agreement to trade the country's first Shanghai interbank offered rate-based forward repurchase agreement using bankers' acceptances as collateral. Under the agreement, Industrial Bank Company will sell $72.9 million worth of bankers' acceptances to Shenzhen Development Bank Company on August 06 2008, and repurchase them November on 06 2008.
http://online.wsj.com/article/BT-CO-20080708-716093-search.html?KEYWORDS=China&COLLECTION=autowire/6month
July 08: China Southern Fund Management Company and E Fund Management Company have become the first mainland fund firms to gain approval from China's securities regulator to set up offshore units. Both ventures will be established in Hong Kong, the only location mainland China funds are allowed to set up offshore units at present.
http://online.wsj.com/article/BT-CO-20080708-703428-search.html?KEYWORDS=China&COLLECTION=autowire/6month
Cross - Straits
July 09: Shin Kong Life Insurance Company, a wholly owned subsidiary of the Shin Kong Group and the second largest domestic life insurer in Taiwan, is moving to get a foothold in the vast mainland insurance market by joining hands with Hainan Airlines, the fourth biggest Chinese carrier.
http://www.chinaknowledge.com/News/news-detail.aspx?id=16380&cat=FIN
July 09: A high-profile symposium is organized to discuss prospects of the mainland-Taiwan relations and peaceful development across the Taiwan Strait. The participants were expected to discuss how to enhance the cross-Strait relations and achieve common prosperity by peaceful means.
http://news.xinhuanet.com/english/2008-07/09/content_8515670.htm
General News
July 09: Aluminum Corporation of China is suspending production at Shanxi Huaze Aluminum & Power Company in the northern Chinese province due to power shortage. The facility is gradually cutting its output.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=16367
July 08: State-owned shipping company China Yangtze Transportation (Group) Corporation has reached an agreement to merge with Sinotrans Group, another state-owned shipping firm.
http://online.wsj.com/article/BT-CO-20080708-715434-search.html?KEYWORDS=China&COLLECTION=autowire/6month