Monday, December 31, 2007

Learn mandarin - China to launch nearly 32 billion yuan T-bonds

?  ?

BIZCHINA / Top Biz News

China to launch nearly 32 billion yuan T-bonds

(Xinhua)
Updated: 2007-09-18 08:58

The first batch of 31.97 billion yuan (US$4.25 billion)?of the total 200
billion yuan?in special treasury bonds targeting the general public will
be launched on Tuesday, China's Ministry of Finance said.

The ministry announced last Monday that it will issue 200 billion yuan in
special treasury bonds as the second part of a planned 1.55-trillion-yuan
fund to finance the country's new foreign exchange investment firm.

The first batch of the bonds, with a term of 15 years and an annual yield
of 4.68 percent, will be launched between September 18 and September 21,
and tradable from September 27 via the national inter-bank bond market
and stock markets, said the ministry in a statement on Monday.

The ministry said interest will be paid every half-year and the bonds
will finally be repaid on September 18, 2022.

The ministry said that private investors can trade the bonds at the
secondary market through the trial commercial banks - branches of the
Industrial and Commercial Bank of China, Agricultural Bank of China, Bank
of China and China Construction Bank.

According to the ministry, the special treasury bonds will be issued in
two groups, with the first 100 billion yuan to be issued this month in
three batches, while the sale of the remaining 100 billion yuan is
scheduled for the fourth quarter.

Two more batches will be issued on September 21 and September 28.

In June, China's top legislature approved the issuance of 1.55 trillion
yuan of special treasury bonds by the Ministry of Finance to buy US$200
billion foreign exchange reserve for a state investment firm to make
better use of the country's huge foreign exchange reserves.

At the end of August, the ministry issued 600 billion yuan of special
treasury bonds targeting the country's commercial banks with an annual
interest rate of 4.3 percent.

(For more biz stories, please visit Industry Updates)

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Learn mandarin - Experts call to lift embargo on blood imports

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BIZCHINA / Biz Media Digest

Experts call to lift embargo on blood imports

By Shan Juan (China Daily)
Updated: 2007-09-15 08:49

Haemophilia sufferers in China are facing a severe nationwide
plasma-derived product shortage for treatment, a leading doctor for blood
diseases at the Chinese Academy of Medical Sciences, said.

To safeguard and save the lives of China's roughly 100,000 haemophiliacs,
Dr Yang Renchi called on the government to give the green light to resume
plasma imports.

"It's the high time for the government to consider to ease a
two-decade-long ban on all imported blood and plasma-derived products,"
he said.

Imports would also include the plasma-derived clotting factor VIII
product, he added.

Sufferers of the life-threatening genetic blood disorder can experience
prolonged and occasionally excessive hemorrhages.

China imposed the embargo in 1986 after the first HIV infection through
imported factor VIII was detected around 1983.

"Although there are still risks of transmission of blood-borne pathogens,
strict measures designed to inactivate the virus have greatly improved
the safety of foreign blood products these days, " Yang said.

Such disinfection measures, according to industry insiders, are widely
applied at China's 33 blood production companies.

Other experts, including patients have echoed Yang's call to lift the
import ban.

"The situation is really harsh and pressing," Chu Yuguang, a
Beijing-based haemophiliac and director with the Haemophilia Home of
China, a volunteer civil society of more than 3,000 patients, said.

The shortfall is so dire, current supplies could only help just 5 percent
of patients, he said.

Some industry insiders also blamed the recent strengthened controls by
authorities on blood plasma collection centers. Many establishments
considered sub-standard have been shut down.

The government in response is busy considering countermeasures.

"(The government) indeed understands the pain of patients," Yan
Jiangying, spokeswoman with the top drug watchdog, said.

However, she doubted the possibility of the embargo being loosened very
soon. She instead appealed for more people to donate blood, as this was
the only way to solve the problem.

Chu called on the government to deal with this "pressing issue" as soon
as possible.

?

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Learn mandarin - Indices close up amid frequent adjustments

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BIZCHINA / Index & Statistics

Indices close up amid frequent adjustments

By Li Zengxin (chinadaily.com.cn)
Updated: 2007-09-12 16:29

China is under severe inflationary pressures as the consumer price index
reached an 11-year high of 6.5 percent in August. In addition, China's
August trade surplus reached US$24.97 billion, up from US$18.8 billion a
year earlier, or nearly 33 percent year on year.

To mop up excessive liquidity, not only macro economic policies but also
more investment channels for the Chinese people are needed, said
analysts. In absence of a multi-layer capital market, Chinese residents
have fewer choices other than the stock market in which to invest their
savings.

The qualified domestic institutional investor (QDII) that invests
domestic clients' money in overseas stock markets may help divert some of
the capital flow. China is closely watching the proceedings of the QDII
trial business, will adjust and improve QDII rules constantly, and expand
the investment scope of the program, said Gui Minjie, vice chairman of
the China Securities Regulatory Commission in Hong Kong yesterday.

The country's first stock-oriented fund under the QDII program was
launched by China Southern Fund Management Co Ltd today, the Beijing
Daily Messenger reported.

The new fund differs from existing QDII funds in that it will be
available for redemption and purchase daily after a maximum three-month
lock-in period. And its net asset value will be published every trading
day. The new fund can invest 100 percent of its assets in global stock
markets, instead of investing only in low-risk, low-return bond and
currency markets.

Inflation also makes investment in fixed-asset and precious metals more
attractive. Gold prices tend to go against other capital market trends,
and investors often look to gold for profit when the stock market is
bearish. But the "more than affluent" money floating in the economy
completely offsets such effect and spills over to the precious gold
market, said analysts.

In order to hedge risks, the securities regulator yesterday approved gold
futures trading on the Shanghai Futures Exchange (SHFE), the fourth new
futures product to be launched in China this year. SHFE said yesterday
gold futures contracts will be traded in the near future after the China
Securities Regulatory Commission gave the green light.

"Gold futures are expected to be traded more actively than other metal
futures, because investors consider gold as a financial instrument and
not just a metal," said Li Jingyuan, an analyst at Haifu Futures Co.

(For more biz stories, please visit Industry Updates)

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Chinese Online Class - Over 60% of land use in China illegal

CHINA / National

Over 60% of land use in China illegal
(China Daily)
Updated: 2006-06-07 06:36

In a drive to rein in the building boom, the Ministry of Land and
Resources has called for prompt investigations into developers suspected
of breaking land laws.

Residents in Nanjing, capital of East China's Nanjing Province, walk past
a newly-constructed apartment building May 10, 2005. [newsphoto]

The National Bureau of Statistics' latest figures reveal that China saw
1.8 trillion yuan (US$222 billion) invested in development in cities and
towns in the first four months of 2006.

Among the investments, "a large quantity of funds has been put into land
projects, including many illegal acquisitions," said a ministry official
at a national conference on land law enforcement.

In some places, the number of illegal acquisition cases account for 60
per cent, or even 90 per cent, of the total land use since September
2004, said the official.

Local land resources departments were ordered to deal with at least three
illegal land acquisition cases in June, ministry officials said. A total
of eight cases should be handled by the end of the year.

Major officials in charge of land resources at local level could face
punishment for their failure to supervise the situation properly,
ministry officials added.

An investigation conducted by the ministry in 2005 showed that the number
and total area of illegal land acquisition cases accounted 63.8 per cent
and 52.8 per cent respectively of newly-allocated construction projects
in 70 districts in 15 cities.

The fact that many industrial projects are transferred from the east to
the west helps increase the number of large-scale illegal land
acquisition cases in western China in a "step-by-step way," officials
said.

To cool down the overheated real estate market, the central government
has announced a package of policies, including raising mortgage down
payments from 20 to 30 per cent on units larger than 90 square metres,
and the halt of land supply for luxury villas.

In addition the Ministry of Supervision has been invited, for the first
time, to supervise the investigation of illegal land acquisition cases,
reports said.

The ministry will handle a batch of typical cases, Chen Changzhi,
vice-minister of supervision, said at a mobilization conference on May 29.

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Sunday, December 30, 2007

Chinese Online Class - Huge tobacco revenue?worrying

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BIZCHINA / Review & Analysis

Huge tobacco revenue?worrying

(China Daily)
Updated: 2007-09-11 10:01

Continuous growth in tax revenues is reminiscent of strong economic
dynamism.

The country's top 500 taxpayers alone paid more than 774 billion yuan
(US$101.84 billion) last year. That was more than one-fifth of the
national total.

In addition to the vibrant state of our soaring economy, the top-500 list
also shows a delicate change in its structure. The tertiary industry now
constitutes a larger share in aggregate tax contribution of the top 500,
gaining more than 6 percentage points to almost reach 24 percent.

That is something to celebrate. But a closer look at the list reminds us
there is a lot more to be desired.

It is actually worrisome when we find out who are the main tax
generators. In the top 10 tax payers of 2006, there were four in the oil
industry and three in tobacco. On the top-500 list, 174 are in such areas
as oil, natural gas, and coal. Most of them have been on the list since
it was created. And tobacco remains the biggest taxpayer.

Nearly half of the top 500 are in the above two categories. That is
something to worry about.

In the first place, their profits are based more on monopoly status than
on competitive advantages. They are beneficiaries of State monopoly over
strategic resources.

Their rapid growth is a double-edged sword - on one hand, they yield
handsome tax incomes; on the other, their prosperity reveals our
economy's addictive dependence on resource input.

The tobacco money is especially so, because it is associated with an
obvious public health disaster. We are the world's No 1 tobacco consuming
country. We see the biggest number of tobacco-related deaths. The dozens
of tobacco firms at the top 500 roster are a grim reminder of the
unhealthy structure of our tax revenues.

The government wants an ever-increasing supply of tax money to advance
public welfare. But it does no good if such growth is achieved at the
price of environmental degeneration, resource depletion, or public health.

(For more biz stories, please visit Industry Updates)

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Chinese School - 'China should expand military spending'

CHINA / National

'China should expand military spending'
(chinanews.com)
Updated: 2006-06-06 06:55

"In the past 27 years, China has achieved remarkable success and progress
in the construction of its economy. However, very few people are aware
that China's development in the area of national defense has lagged
behind its economic growth significantly, resulting in the emergence of
an uncoordinated development between its national defense and its
economy," said Hu Angang, a renowned expert in national scenarios in
China and a professor from Tsing Hua University, expressing his worries
regarding the situation.

Hu Angang, director of the Centre for China Studies at the prestigious
Tsinghua University [file photo]

The basic national scenario for China is that it has a large population
and a vast territory, with a 9.6-million-square-kilometer land area and a
3-million-square-kilometer ocean area.

It borders over ten countries and its borderline extends to tens of
thousands of kilometers, while its coastline is 18,000 km in length.

If China wants to meet the minimum requirement of national defense
construction and national security, it should spend at least two to three
percentage points of its GDP on national defense.

From 1992 to 2002, China's expenditure on national defense only took up
1.6 to 1.62 percentage points of its GDP. Among the seven big countries
with over 3 million square kilometers of land area in the world, China's
expense on national defense is considered relatively low.

In the interview with Hu Angang, he indicated that China's national
defense will be greatly reinforced and its goal of strengthening military
power with science and technology will be realized, if China can
gradually increase its proportion of GDP spending on national defense to
a reasonable and appropriate rate.

China can increase its proportion of GDP spending on national defense in
two steps: first, raise the current ratio from 1.6 to 2% and second, make
it reach 2.5%. As far as China is concerned, such a ratio would be
basically appropriate but it would be regarded as moderate or low based
on an international standard.

This economist said that China's economy has maintained rapid growth
since 1996, and its proportion of fiscal revenue as well as total
government revenue in relation to its GDP has clearly gone up.

He added that China possesses the conditions and is now capable of
offering necessary and timely compensation to the army for its
contribution in the past 20 years to protect the overall situation of
national economy construction.

It is necessary and possible for China to spend more on national defense
to fortify national defense construction and accelerate modernization of
its national defense. This is not only in tune with China's core national
interests but also a boost to economic growth.

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Learn Chinese - NDRC?warns against rigged price hikes of steels

?  ?

BIZCHINA / Center

NDRC?warns against rigged price hikes of steels

(Xinhua)
Updated: 2007-09-07 14:19

Steel?products are displayed on a metallurgy exhibition in Shanghai on
May 10. China's top economic planner?urged to curb "drastic fluctuations"
of domestic steel prices on?Thursday. [newsphoto]?

China's top economic planner said on Thursday efforts should be made to
curb "drastic fluctuations" of domestic steel prices which have been
rising for seven consecutive weeks.?

The National Development and Reform Commissions (NDRC) said the domestic
demand and export of steel products should be controlled. It warned
against coordinated actions to bid up the prices of steels.

According to the nation's market watchdog, the average price of four
types of major steel products rose by 17.8 percent to 4,358 yuan
(US$573.4) last week compared with the same period of last year.

Surging domestic demands, a slight decline in supplies and soaring iron
ore price have contributed to the recent price hikes of steel products,
said the NDRC.

China's fixed assets investment in urban regions rose by 26.6 percent
year-on-year to 5.67 trillion yuan?in the first seven months this year.
Investment in real estate sector reached 1.21 trillion yuan, up 28.9
percent.

While the supply of steels dropped by 5.3 percent in July over the
previous month due to suspension of production in some areas out of
concerns of energy saving and production safety.

The price of iron ore produced in North China's Hebei Province went up by
80 percent to 1,097 yuan?per ton compared with last year.

The economic planner also pointed to high flying international steel
prices, rumors about future price hikes and illegal operations of some
producers and sellers.

Factories could resume production with easing power shortages in autumn,
which would increase the supply, said the planner. But the commission
still called for intensified measures to reign in fixed assets
investment, stricter control over steel export and closer watch over the
market.

China became the world's No. 1 steel exporter in 2006, triggering
frequent disputes with its trade partners in the US and the EU.

(For more biz stories, please visit Industry Updates)

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Chinesepod - Pork prices continue to decline

?  ?

BIZCHINA / Top Biz News

Pork prices continue to decline

By Song Hongmei (chinadaily.com.cn)
Updated: 2007-09-06 13:47

Wholesale pork prices fell on average for the fourth week in a row from
August 27 to September 2, down 2.8 percent over the previous week,
figures from the Ministry of Commerce showed yesterday.

Last week, of the 31 major cities monitored by the ministry, prices of
pork , a staple in China, dropped in 19 cities. Prices in some cities
fell more than 10 percent.

The price decline is a result of efforts that began last month by the
government and producers to increase supply. Also, some producers, who
worried that pork prices would continue to drop, sold their pigs ahead of
schedule, according to the ministry.

Due to short supply and mounting costs of inputs, the prices were up 70.3
percent year on year at the end of last month, according to figures from
the National Development and Reform Commission. It had almost doubled
over the last seven months.

However, Jiang Zengwei, vice minister for commerce, said pork prices will
remain high because demand will increase as the weather gets cooler.

Although pork price hikes and related governmental policy incentives have
encouraged farmers to raise more pigs, the process still takes time, said
Jiang.

Last week, of the major edible farm products monitored by the ministry,
prices of wholesale beef and mutton rose 0.3 percent and 1.8 percent
respectively.

Retail prices for chicken rose 0.3 percent last week while egg prices
fell by 0.3 percent in the same period.

Prices of aquatic products dropped 0.6 percent last week with all
freshwater fishes becoming less expensive than the previous week.

Due to the recent good weather and harvesting, vegetables prices also
dropped by 0.5 percent, although fruits prices grew by 4.6 percent.

Prices of grains also rose 0.2 percent. As the weather gets cooler, paddy
demand will remain strong and prices are likely to rise steadily,
predicted the ministry.

(For more biz stories, please visit Industry Updates)

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Saturday, December 29, 2007

Chinese Online Class - Regulator to examine IPO application of CCB

?  ?

BIZCHINA / Center

Regulator to examine IPO application of CCB

(Xinhua)
Updated: 2007-09-04 15:13

China Construction Bank (CCB), one of the country's four largest
State-owned commercial banks, has its domestic listing in sight, as the
regulator said it would meet on Friday to discuss the initial public
offering (IPO) application of the lender.

The bank plans to issue no more than 9 billion A shares, and the
yuan-denominated shares will account for no more than 3.85 percent of its
enlarged capital after listing, it said in the draft prospectus submitted
to the China Securities Regulatory Commission (CSRC) for approval.

CCB will use raised money to supplement its capital, the prospectus said.

Based on experience, the bank can finish the process as early as
September, industry insiders said.

By the end of 2006, the bank's capital adequacy ratio hit 12.11 percent
while non-performing loans ratio was 3.29 percent.

The bank has invited China International Capital Company, CITIC
Securities and Cinda Assets Management Company to be its underwriters and
advisors of A-share IPO.

The prospectus gave no details on the IPO price or location of listing.

CCB was listed in the Hong Kong stock exchange in October 2005. It issued
26.486 billion shares on Hong Kong stock market and raised US$9.2 billion.

(For more biz stories, please visit Industry Updates)

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Learn Chinese - China-Russia trade expects to surpass US$40b

?  ?

BIZCHINA / Center

China-Russia trade expects to surpass US$40b

(Xinhua)
Updated: 2007-09-03 10:36

Merchants from Russia?look at?wooden crafts on a trade fair in
Heilonjiang Province on?August 16. Trade between China and Russia is
expected to surpass US$40b this year. [newsphoto]

Trade between China and Russia is expected to surpass US$40 billion this
year, after it reached a record high of US$33.4 billion last year,
Chinese Vice Minister of Commerce Wei Jianguo said here on Sunday.

"The two-way trade has kept increasing since 1999, with an average annual
growth of 28.6 percent," Wei told an opening ceremony of the 3rd
Northeast Asia Investment and Trade Expo opened on Sunday in Changchun,
capital of Northeast China's Jilin Province.

The China-Russia trade reached US$25 billion in the first seven months,
he said.

"Meanwhile, the border trade has become an important part of the
bilateral trade," he said.

Statistics show that the border trade between the two countries stood at
US$7 billion last year and reached US$4.6 billion during the January-July
period this year.

Currently, China is Russia's third largest trading partner, while Russia
is China's eighth largest trading partner.

The expo, with the theme of "opportunity, exchange, cooperation and
development", attracted more than 50,000 investors and merchants from 61
countries and regions.

(For more biz stories, please visit Industry Updates)

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Chinese School - Trade: Bribes push up prices

?  ?

BIZCHINA / Biz Media Digest

Trade: Bribes push up prices

(China Daily)
Updated: 2007-08-31 09:33

Commercial corruption, which also contributes to the increasing prices of
commodities, should be eliminated, says an article in Qilu Evening News.
The following is an excerpt:

Officials from Carrefour, the world's second biggest retailer, recently
caught staff members in Beijing engaged in what could be commercial
corruption.

The employees were suspected of taking bribes from suppliers.

This incident may take on more significance when placed against the big
picture of the economy.

The prices of most of the commodities on the market have increased since
the beginning of the year. When the authorities try to regulate the
market, they cannot ignore the factors inside businesses that drive
prices up to an unreasonably high level.

In the Carrefour incident, the bribes taken from suppliers will naturally
be passed on to the costs of the commodities, which will be reflected in
the prices of goods at the supermarket. In other words, the customers are
actually paying the bribes.

By eliminating commercial corruption, the authorities can maintain the
market order and promote the public welfare. Therefore, stamping out
commercial corruption should become an important part of the efforts to
rein in price rises.

Besides multinational companies like Carrefour, investigators should also
keep an eye on domestic businesses, which outnumber foreign invested
ones. The punishments handed down to people who engage in commercial
corruption should also be harsher than they currently are.

(For more biz stories, please visit Industry Updates)

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Learn Mandarin online - FDI in China totals over $750b

?  ?

BIZCHINA / Center

FDI in China totals over $750b

(Xinhua)
Updated: 2007-08-28 13:16

China's actual use of foreign direct investment (FDI) had cumulatively
exceeded US$750 billion by the end of June this year since the beginning
of its opening-up policy in 1978, according to a senior commerce official.

Vice Minister of Commerce Wei Jianguo said the country had approved the
establishment of 610,000 foreign-funded enterprises by the end of June
this year.

In the first half of 2007, exports of foreign-funded enterprises
accounted for 57 percent of the nation's total, said Wei at a forum on
the social responsibility of foreign-funded enterprises.

Currently, more than 28 million people work in these enterprises, or
about 10 percent of the employed population in cities and towns of the
country.

China actually used US$36.93 billion in FDI in the first seven months of
2007, a growth of 12.92 percent year-on-year, according to the Ministry
of Commerce.

Wei said China will unswervingly push forward opening-up and reform and
continue to attract foreign investment in an active and effective way.

China will strive to improve the quality and level of foreign investment,
with efforts to adjust industrial structure and guide foreign investment
to its relatively underdeveloped central and western regions, according
to Wei.

(For more biz stories, please visit Industry Updates)

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Friday, December 28, 2007

Chinese language - Online reporters visit Tiangong Co. Ltd

CHINA / News

Online reporters visit Tiangong Co. Ltd
By Tao Li (chinadaily.com.cn)
Updated: 2006-05-31 23:00

On the third day of the Jiangsu Web Tour, online reporters embarking on
the south route visited Jiangsu Tiangong (Group) Co., Ltd. in Zhenjiang,
a large export company in China, and one of export base enterprises of
state mechanical and electrical products.

Zhu Xiaokun, general manager of Tiangong (Group) Co.Ltd introduces the
company during a group interview with to the online reporters.
[chinadaily.com.cn]

Established in 1981, the company is a specialized in producing twist
drills, special raw material, and thulium high-speed tool steel. The
company boasts an annual capacity of 36000 tons of high-speed tool steel,
ranking in the first place for 6 years in a run in China.

The canteen of Tiangong (Group) Co. Ltd.

Page: 1 2 3

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Chinese Online Class - Made-in-China

?  ?

BIZCHINA / Review & Analysis

Made-in-China

(China Daily)
Updated: 2007-08-24 11:44

What does the made-in-China brand epitomize?

If the brand only stood for low-end consumer goods two decades ago, what
they represent today is far more complicated and extensive in its entire
process from production to sales. Just as a high-ranking official from
the Ministry of Commerce said yesterday, globalization has added many
international elements to the made-in-China brand.

The fact that more than 58 percent of made-in-China products are exported
by transnational companies speaks volumes for the real nature of this
label.

In the more than 100-fold trade increase between China and the United
States in the past 28 years, made-in-China brands have played an
essential role. And both Chinese and American people have benefited from
this label.

So it is both unfair and unjustifiable to amplify the safety problems of
some Made-in-China food and toys to such a degree to implicate all
Chinese-made products.

The contributions made-in-China brands have made to the country's
progress to become one of the world's trade giants in the past three
decades are tremendous. It is impossible for the label to have cheated
its way to that status.

Comparing the Chinese-made products two decades ago with their current
versions, any sensible person should not deny the fact that Made-in-China
products have improved a great deal in many ways including quality.

Both the Chinese government and related industrial guilds have paid more
attention to the problematic exported products. Just as a senior official
from the Ministry of Commerce pointed out, we welcome balanced reports
about the recall of unsafe toys and criticism about those problematic
products.

These reports and criticisms have alerted Chinese authorities and related
departments and enterprises to take action to plug the loopholes and
address the quality problems they might have long ignored.

But if such separate incidents were taken advantage of to fan trade
protectionism or establish trade barriers against Chinese-made products,
it would be both the Chinese people and American people to suffer.

It is natural for trade frictions to arise given the large scale of
export and import between China and the United States, but they should
never affect the overall strategic trade relations between the two. The
best way to iron out frictions is to sit down and talk.

(For more biz stories, please visit Industry Updates)

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Chinesepod - Auto: Chery produces 1m cars in total

?  ?

BIZCHINA / Biz Media Digest

Auto: Chery produces 1m cars in total

(Xinhua)
Updated: 2007-08-22 15:07

China's Chery Automobile produced its 1 millionth car on Wednesday to
become the country's first indigenous automaker to reach the milestone.

The 10-year-old Chery achieved a miracle in the automotive industry in
the world by making its first million cars within seven years and nine
months, said a statement from the company.

It took Chery about six years to make its first half million cars, and
only one year and a half to complete the second half million.

The 1 millionth car is an A3, a four-door hatchback which made its debut
at last year's Beijing auto show and was expected to be sold on market
later this year.

In contrast with Chery, Sino-German automaker FAW Volkswagen spent 13
years on making its first million cars, while it took more than eight
years for Shanghai GM and Guangzhou Honda to build their first million
cars.

China's first Sino-foreign automaker Shanghai Volkswagen, established in
1985, turned out its 3.5 millionth car in January 2007.

Chery, the ambitious flag-bearer of Chinese indigenous brands, is
currently capable of producing 400,000 cars, 400,000 engines and 300,000
transmission cases a year and plans to raise its annual output to 1
million cars by 2010.

A new plant, which will begin production in October this year, is
expected to increase Chery's annual capacity by an additional 300,000
cars.

China currently has 30 sedan manufacturers, nine of which produce more
than 200,000 units a year.

Chery, based in the eastern city of Wuhu, sold 232,785 cars in the first
seven months of the year, maintaining its position as the country's
seventh largest automobile manufacturers and the fourth largest sedan
producer.

It held a 7.2-percent share in the domestic market last year, up from 6.7
percent in 2005.

The company has exported 153,694 cars since 2001, exceeding exports by
any other Chinese sedan producer for four consecutive years.

(For more biz stories, please visit Industry Updates)

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Chinesepod - China to hold trade fair in Costarica

?  ?

BIZCHINA / Center

China to hold trade fair in Costarica

(People's Daily Online)
Updated: 2007-08-20 13:27

The 2007 China Trade Exhibition will be held in Costarica from August 22
to 25, according to the China Council for the Promotion of International
Trade (CCPIT).

Nearly 30 Chinese enterprises in eight Chinese provincial-level regions,
including Beijing, Chongqing and Zhejiang, have been confirmed to attend
the first trade fair to be held in Costarica, said CCPIT vice chairman
Wang Jinzhen.

The exhibits will include home appliances, communication equipment,
electronics, automobile, motorcycle, farm machinery, textile and clothing.

As a comprehensive international exhibition of Chinese-made products, it
is aimed at promoting bilateral trade and economic cooperation, Wang said.

CCPIT also plans to set up a representative office in Costarica before
the end of this year, which will serve as the second representative
office in Latin America and the 17th such office abroad.

(For more biz stories, please visit Industry Updates)

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Thursday, December 27, 2007

Learn Chinese online - House prices keep on rising

?  ?

BIZCHINA / News

House prices keep on rising

By Hu Yuanyuan (China Daily)
Updated: 2007-08-17 07:14

Property prices in the country's 70 large and medium cities rose by 7.5
percent year-on-year last month, the National Development and Reform
Commission said yesterday.

The growth rate is the highest since 2006 - and 0.4 percentage points
higher than that of June, which also saw accelerated growth.

Special coverage:
Housing in China
Related readings:
?Property prices up 6.3% in major cities in 2nd quarter
?Property prices up 7.1% in June
?More foreign capital flows in property sector
?$924m overeseas property funds eye China

Beihai, Shenzhen, Nanning, Urumqi and Beijing led the way on price
increases, with rates of 18.6 percent, 16.1 percent, 12 percent, 12
percent and 11.6 percent respectively.

It's the first time this year Urumqi, capital of the Xinjiang Uygur
Autonomous Region, was on the property price hike list.

Beihai, a small city at the southern end of South China's Guangxi Zhuang
Autonomous Region, has been at the top of the list for five months in a
row, reflecting strong growth in second- and third-tier cities.

But summer is typically a peak time for housing deals, according to Anna
M Kalifa, head of research at Jones Lang LaSalle Beijing.

"June and July are generally key times for property deals, not only in
China, but also for the world," said Kalifa.

She said China's property prices would continue to grow in the next six
months, but at a slower pace.

"We expect property prices to grow by around 8 to 8.5 percent from
January this year to January 2008, but we've seen most of that growth
already".

Prices for pre-owned houses jumped by 7.3 percent last month.

That was 0.5 of a percentage point lower than May. Shenzhen still tops
the list in terms of price rises, with a growth rate of 21.4 percent.

(For more biz stories, please visit Industry Updates)

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Chinese Online Class - US calls on WTO to set up IPR dispute panel

?  ?

BIZCHINA / Top Biz News

US calls on WTO to set up IPR dispute panel

By Jiang Wei (China Daily)
Updated: 2007-08-15 06:57

The United States has asked the World Trade Organization (WTO) to set up
a panel to settle its intellectual property rights (IPRs) dispute with
China after the two sides failed to negotiate an agreement.

Sean Spicer, spokesman for the US Trade Representative, said China has
taken tangible steps to improve IPR protection and enforcement in recent
years, but the US still sees "important gaps that need to be addressed".

Under WTO rules, the WTO Dispute Settlement Body will consider the US
request at its next meeting on August 31.

The panel will have six to 12 months to decide on the case.

Chen Jihong, a lawyer with Zhonglun W&D Law Firm in Beijing, said the
United States was not justified in its criticism of China's IPR
protection.

He said the country has made great progress in IPR protection over the
past decade by improving legislation and boosting enforcement.

The US filed a complaint to the world trade body over China's protection
and enforcement of copyright and trademarks in April. Consultations were
held in June.

The IPR case is one of five disputes lodged with the WTO by the United
States against China. It is the third case lodged against China in which
the United States has requested a WTO dispute settlement panel.

Last September, Washington requested a panel examine China's regulations
on imposing local content requirements in the auto sector. In July this
year, it called for a panel to look into China's so-called industry
subsidies. And a dispute over market access to films, music, home
entertainment videos and publications is also under consultation.

(For more biz stories, please visit Industry Updates)

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Chinese Mandarin - NEC Elec to double China sales by 2010

?  ?

BIZCHINA / Center

NEC Elec to double China sales by 2010

(Reuters)
Updated: 2007-08-13 15:46

Japan's NEC Electronics Corp aims to double its sales in China to 100
billion yen ($845 million) by fiscal 2010 by boosting its operations in
the market, which is expected to grow more than 10 percent annually, the
Nikkei business daily reported on Sunday.

The chip maker, 70 percent-owned by NEC Corp, plans to double its
workforce in China, including the number of its design engineers, by
fiscal 2010 from the current 400, the paper said.

Chip sales are expected to expand in China on rapidly growing demand for
semiconductors used for air conditioners and electric bicycles, the
Nikkei said.

The company also aims to raise its sales to Chinese home electronics
makers to nearly 50 percent of its total sales in China in fiscal 2010
from 35 percent in 2006, the paper said.

(For more biz stories, please visit Industry Updates)

Learn Chinese, Chinesepod

Learn Chinese - Trade: Ironing board producer sues EU over anti-dumping tariffs

?  ?

BIZCHINA / Biz Media Digest

Trade: Ironing board producer sues EU over anti-dumping tariffs

(Xinhua)
Updated: 2007-08-10 15:04

A Chinese company which exports ironing boards to European Union
countries has filed a lawsuit against the EU over anti-dumping tariffs.

Cheng Huazhen, general manager of the Huahe Hardware Company based in
east China's Zhejiang Province, said the EU imposed the tariffs according
to incorrect investigation results.

The lawsuit was filed to the EU court of first instance, and the court
has accepted the lawsuit, Li Shengjing, a lawyer representing the firm
said.

In February last year, the European Commission of the EU launched an
anti-dumping investigation into the company. The commission denied market
economy status of the company and imposed a 25-percent anti-dumping
tariff later in the year after finding the company's finance system not
conforming with international accounting standards.

Cheng insisted their company was up to the standards and filed plea to
the commission. In February this year, the EU granted market economy
status to the company and cut the anti-dumping rate to 3.1 percent.

But one month later, the commission revoked the company's economic status
in an amended document, and raised the anti-dumping rate to 26.5 percent
in April, Cheng said.

The lawyer representing the firm said the EU also cut short the time for
the company to launch a counterplea.

In January this year, five Chinese shoemakers from Zhejiang, Taiwan and
Hong Kong filed lawsuits against the European Union's anti-dumping
tariffs, claiming that the EU didn't routinely and impartially review the
companies before meting out the tariffs.

Industry analysts say the case the shoemakers launched could last two to
four years and cost up to 2 million yuan (US$255,750).

Huahe Hardware Company was set up in 2004 in Kaihua County of western
Zhejiang. Its annual output value is about 50 million yuan (US$6.5
million), most products are for export to the EU.

(For more biz stories, please visit Industry Updates)

Learn Chinese

Wednesday, December 26, 2007

Chinese School - Shanghai Cooperation Organisation Charter

?  ?

CHINA / Background

Shanghai Cooperation Organisation Charter

(Xinhua)
Updated: 2006-06-12 15:12

The People's Republic of China, the Republic of Kazakhstan, the Kyrgyz
Republic, the Russian Federation, the Republic of Tajikistan and the
Republic of Uzbekistan being the founding states of the Shanghai
Cooperation Organisation (hereinafter SCO or the Organisation),

Based on historically established ties between their peoples;

Striving for further enhancement of comprehensive cooperation;

Desiring to jointly contribute to the strengthening of peace and ensuring
of security and stability in the region in the environment of developing
political multi-polarity and economic and information globalization;

Being convinced that the establishment of SCO will facilitate more
efficient common use of opening possibilities and counteracting new
challenges and threats;

Considering that interaction within SCO will promote the realisation of a
huge potential of goodneighborliness, unity and cooperation between
States and their peoples;

Proceeding from the spirit of mutual trust, mutual advantage, equality,
mutual consultations, respect for cultural variety and aspiration to
joint development that was clearly established at the meeting of heads of
six States in 2001 in Shanghai;

Noting that the compliance with the principles set out in the Agreement
between the People's Republic of China, the Republic of Kazakhstan, the
Kyrgyz Republic, the Russian Federation and the Republic of Tajikistan on
Strengthening Confidence in the Military Field in the Border Area of 26
April, 1996, and in the Agreement between the People's Republic of China,
the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation
and the Republic of Tajikistan on Mutual Reductions of Armed Forces in
the Border Area of 24 April, 1997, as well as in the documents signed at
summits of heads of the People's Republic of China, the Republic of
Kazakhstan, the Kyrgyz Republic, the Russian Federation, the Republic of
Tajikistan and the Republic of Uzbekistan in the period from 1998 to
2001, has made an important contribution to the maintenance of peace,
security and stability in the region and in the world;

Reaffirming our adherence to the goals and principles of the Charter of
the United Nations, other commonly acknowledged principles and rules of
international law related to the maintenance of international peace,
security and the development of goodneighborly and friendly relations, as
well as the cooperation between States;

Guided by the provisions of the Declaration on the Creation of the
Shanghai Cooperation Organisation of 15 June, 2001,
Have agreed as follows:

Article 1
Goals and Tasks

The main goals and tasks of SCO are:

to strengthen mutual trust, friendship and goodneighborliness between the
member States;

to consolidate multidisciplinary cooperation in the maintenance and
strengthening of peace, security and stability in the region and
promotion of a new democratic, fair and rational political and economic
international order;

to jointly counteract terrorism, separatism and extremism in all their
manifestations, to fight against illicit narcotics and arms trafficking
and other types of criminal activity of a transnational character, and
also illegal migration;

to encourage the efficient regional cooperation in such spheres as
politics, trade and economy, defense, law enforcement, environment
protection, culture, science and technology, education, energy,
transport, credit and finance, and also other spheres of common interest;

to facilitate comprehensive and balanced economic growth, social and
cultural development in the region through joint action on the basis of
equal partnership for the purpose of a steady increase of living
standards and improvement of living conditions of the peoples of the
member States;

to coordinate approaches to integration into the global economy;

to promote human rights and fundamental freedoms in accordance with the
international obligations of the member States and their national
legislation;

to maintain and develop relations with other States and international
organisations;

to cooperate in the prevention of international conflicts and in their
peaceful settlement;

to jointly search for solutions to the problems that would arise in the
21st century.

Article 2
Principles

The member States of SCO shall adhere to the following principles:

mutual respect of sovereignty, independence, territorial integrity of
States and inviolability of State borders, non-aggression,
non-interference in internal affairs, non-use of force or threat of its
use in international relations, seeking no unilateral military
superiority in adjacent areas;

equality of all member States, search of common positions on the basis of
mutual understanding and respect for opinions of each of them;

gradual implementation of joint activities in the spheres of mutual
interest;

peaceful settlement of disputes between the member States;

SCO being not directed against other States and international
organisations;

prevention of any illegitimate acts directed against the SCO interests;

implementation of obligations arising out of the present Charter and
other documents adopted within the framework of SCO, in good faith.

Article 3
Areas of Cooperation

The main areas of cooperation within SCO shall be the following:

maintenance of peace and enhancing security and confidence in the region;

search of common positions on foreign policy issues of mutual interest,
including issues arising within international organisations and
international fora;

development and implementation of measures aimed at jointly counteracting
terrorism, separatism and extremism, illicit narcotics and arms
trafficking and other types of criminal activity of a transnational
character, and also illegal migration;

coordination of efforts in the field of disarmament and arms control;

support for, and promotion of regional economic cooperation in various
forms, fostering favorable environment for trade and investments with a
view to gradually achieving free flow of goods, capitals, services and
technologies;

effective use of available transportation and communication
infrastructure, improvement of transit capabilities of member States and
development of energy systems;

sound environmental management, including water resources management in
the region, and implementation of particular joint environmental programs
and projects;

mutual assistance in preventing natural and man-made disasters and
elimination of their implications;

exchange of legal information in the interests of development of
cooperation within SCO;

development of interaction in such spheres as science and technology,
education, health care, culture, sports and tourism.
The SCO member States may expand the spheres of cooperation by mutual
agreement.

Article 4
Bodies

1. For the implementation of goals and objectives of the present Charter
the following bodies shall operate within the Organization:

The Council of Heads of State;

The Council of Heads of Government (Prime Ministers);

The Council of Ministers of Foreign Affairs;

Meetings of Heads of Ministries and/or Agencies;

The Council of National Coordinators;

The Regional Antiterrorist Structure;

Secretariat.

2. The functions and working procedures for the SCO bodies, other than
the Regional Antiterrorist Structure, shall be governed by appropriate
provisions adopted by the Council of Heads of State.

3. The Council of Heads of State may decide to establish other SCO
bodies. New bodies shall be established by the adoption of additional
protocols to the present Charter which enter into force in the procedure,
set forth in Article 21 of this Charter.

Article 5
The Council of Heads of State

The Council of Heads of State shall be the supreme SCO body. It shall
determine priorities and define major areas of activities of the
Organisation, decide upon the fundamental issues of its internal
arrangement and functioning and its interaction with other States and
international organizations, as well as consider the most topical
international issues.
The Council shall hold its regular meetings once a year. A meeting of the
Council of Heads of State shall be chaired by the head of State
organizing this regular meeting. The venue of a regular meeting of the
Council shall generally be determined in the Russian alphabetic order of
names of the SCO member States.

Article 6
The Council of Heads of Government (Prime Ministers)

The Council of Heads of Government (Prime Ministers) shall approve the
budget of the Organisation, consider and decide upon major issues related
to particular, especially economic, spheres of interaction within the
Organisation.

The Council shall hold its regular meetings once a year. A meeting of the
Council shall be chaired by the head of Government (Prime Minister) of
the State on whose territory the meeting takes place.

The venue of a regular meeting of the Council shall be determined by
prior agreement among heads of Government (Prime Ministers) of the member
States.

Article 7
The Council of Ministers of Foreign Affairs

The Council of Ministers of Foreign Affairs shall consider issues related
to day-to-day activities of the Organisation, preparation of meetings of
the Council of Heads of State and holding of consultations on
international problems within the Organisation. The Council may, as
appropriate, make statements on behalf of SCO.

The Council shall generally meet one month prior to a meeting of the
Council of Heads of State. Extraordinary meetings of the Council of
Ministers of Foreign Affairs shall be convened on the initiative of at
least two member States and upon consent of ministers of foreign affairs
of all other member States. The venue of a regular or extraordinary
meeting of the Council shall be determined by mutual agreement.

The Council shall be chaired by the minister of foreign affairs of the
member State on whose territory the regular meeting of the Council of
Heads of State takes place, during the period starting from the date of
the last ordinary meeting of the Council of Heads of State to the date of
the next ordinary meeting of the Council of Heads of State.

The Chairman of the Council of Ministers of Foreign Affairs shall
represent the Organization in its external contacts, in accordance with
the Rules of Procedure of the Council.

Article 8
Meetings of Heads of Ministries and/or Agencies

According to decisions of the Council of Heads of State and the Council
of Heads of Government (Prime Ministers) heads of branch ministries
and/or agencies of the member States shall hold, on a regular basis,
meetings for consideration of particular issues of interaction in
respective fields within SCO.

A meeting shall be chaired by the head of a respective ministry and/or
agency of the State organising the meeting. The venue and date of a
meeting shall be agreed upon in advance.

For the preparation and holding meetings the member States may, upon
prior agreement, establish permanent or ad hoc working groups of experts
which carry out their activities in accordance with the regulations
adopted by the meetings of heads of ministries and/or agencies. These
groups shall consist of representatives of ministries and/or agencies of
the member States.

Article 9
The Council of National Coordinators

The Council of National Coordinators shall be a SCO body that coordinates
and directs day-to-day activities of the Organisation. It shall make the
necessary preparation for the meetings of the Council of Heads of State,
the Council of Heads of Government (Prime Ministers) and the Council of
Ministers of Foreign Affairs. National coordinators shall be appointed by
each member State in accordance with its internal rules and procedures.

The Council shall hold its meetings at least three times a year. A
meeting of the Council shall be chaired by the national coordinator of
the member State on whose territory the regular meeting of the Council of
Heads of State takes place, from the date of the last ordinary meeting of
the Council of Heads of State to the date of the next ordinary meeting of
the Council of Heads of State.

The Chairman of the Council of National Coordinators may on the
instruction of the Chairman of the Council of Ministers of Foreign
Affairs represent the Organization in its external contacts, in
accordance with the Rules of Procedure of the Council of National
Coordinators.

Article 10
Regional Antiterrorist Structure

The Regional Antiterrorist Structure established by the member States of
the Shanghai Convention to combat terrorism, separatism and extremism of
15 June, 2001, located in Bishkek, the Kyrgyz Republic, shall be a
standing SCO body.

Its main objectives and functions, principles of its constitution and
financing, as well as its rules of procedure shall be governed by a
separate international treaty concluded by the member States, and other
necessary instruments adopted by them.

Article 11
Secretariat

Secretariat shall be a standing SCO administrative body. It shall provide
organisational and technical support to the activities carried out in the
framework of SCO and prepare proposals on the annual budget of the
Organisation.
The Secretariat shall be headed by the Secretary-General to be appointed
by the Council of Heads of State on nomination by the Council of
Ministers of Foreign Affairs.

The Secretary-General shall be appointed from among the nationals of
member States on a rotational basis in the Russian alphabetic order of
the member States` names for a period of three years without a right to
be reappointed for another period.

The Secretary-General deputies shall be appointed by the Council of
Ministers of Foreign Affairs on nomination by the Council of National
Coordinators. They cannot be representatives of the State from which the
Executive Secretary has been appointed.

The Secretariat officials shall be recruited from among nationals of the
member States on a quota basis.

The Secretary-General, his deputies and other Secretariat officials in
fulfilling their official duties should not request or receive
instructions from any member State and/or government, organisation or
physical persons. They should refrain from any actions that might affect
their status as international officials reporting to SCO only.

The member States shall undertake to respect the international character
of the duties of the Secretary-General, his deputies and Secretariat
staff and not to exert any influence upon them as they perform their
official functions.
The SCO Secretariat shall be located at Beijing (the People's Republic of
China).

Article 12
Financing

SCO shall have its own budget drawn up and executed in accordance with a
special agreement between member States. This agreement shall also
determine the amount of contributions paid annually by member States to
the budget of the Organisation on the basis of a cost-sharing principle.

Budgetary resources shall be used to finance standing SCO bodies in
accordance with the above agreement. The member States shall cover
themselves the expenses related to the participation of their
representatives and experts in the activities of the Organisation.

Article 13
Membership

The SCO membership shall be open for other States in the region that
undertake to respect the objectives and principles of this Charter and to
comply with the provisions of other international treaties and
instruments adopted in the framework of SCO.

The admission of new members to SCO shall be decided upon by the Council
of Heads of State on the basis of a representation made by the Council of
Ministers of Foreign Affairs in response to an official request from the
State concerned addressed to the acting Chairman of the Council of
Ministers of Foreign Affairs.

SCO membership of a member State violating the provisions of this Charter
and/or systematically failing to meet its obligations under international
treaties and instruments, concluded in the framework of SCO, may be
suspended by a decision of the Council of Heads of State adopted on the
basis of a representation made by the Council of Ministers of Foreign
Affairs. If this State goes on violating its obligations, the Council of
Heads of State may take a decision to expel it from SCO as of the date
fixed by the Council itself.

Any member State shall be entitled to withdraw from SCO by transmitting
to the Depositary an official notification of its withdrawal from this
Charter no later than twelve months before the date of withdrawal. The
obligations arising from participation in this Charter and other
instruments adopted within the framework of SCO shall be binding for the
corresponding States until they are completely fulfilled.

Article 14
Relationship with Other States and International Organisations

SCO may interact and maintain dialogue, in particular in certain areas of
cooperation, with other States and international organisations.

SCO may grant to the State or international organisation concerned the
status of a dialogue partner or observer. The rules and procedures for
granting such a status shall be established by a special agreement of
member States.

This Charter shall not affect the rights and obligations of the member
States under other international treaties in which they participate.

Article 15
Legal Capacity

As a subject of international law, SCO shall have international legal
capacity. It shall have such a legal capacity in the territory of each
member State, which is required to achieve its goals and objectives.

SCO shall enjoy the rights of a legal person and may in particular:

- conclude treaties;
- acquire movable and immovable property and dispose of it;
- appear in court as litigant;
- open accounts and have monetary transactions made.

Article 16
Decisions-Taking Procedure

The SCO bodies shall take decisions by agreement without vote and their
decisions shall be considered adopted if no member State has raised
objections during the vote (consensus), except for the decisions on
suspension of membership or expulsion from the Organisation that shall be
taken by "consensus minus one vote of the member State concerned".

Any member State may expose its opinion on particular aspects and/or
concrete issues of the decisions taken which shall not be an obstacle to
taking the decision as a whole. This opinion shall be placed on record.

Should one or several member States be not interested in implementing
particular cooperation projects of interest to other member States,
non-participation of the above said member States in these projects shall
not prevent the implementation of such cooperation projects by the member
States concerned and, at the same time, shall not prevent the said member
States from joining such projects at a later stage.

Article 17
Implementation of Decisions

The decisions taken by the SCO bodies shall be implemented by the member
States in accordance with the procedures set out in their national
legislation.

Control of the compliance with obligations of the member States to
implement this Charter, other agreements and decisions adopted within SCO
shall be exercised by the SCO bodies within their competence.

Article 18
Permanent Representatives

In accordance with their domestic rules and procedures, the member States
shall appoint their permanent representatives to the SCO Secretariat,
which will be members of the diplomatic staff of the embassies of the
member States in Beijing.

Article 19
Privileges and Immunities

SCO and its officials shall enjoy in the territories of all member States
the privileges and immunities which are necessary for fulfilling
functions and achieving goals of the Organisation.

The volume of privileges and immunities of SCO and its officials shall be
determined by a separate international treaty.

Article 20
Languages

The official and working languages of SCO shall be Russian and Chinese.

Article 21
Duration and Entry into Force

This Charter shall be of indefinite duration.

This Charter shall be subject to ratification by signatory States and
shall enter into force on the thirtieth day following the date of the
deposit of the fourth instrument of ratification.

For a State which signed this Charter and ratified it thereafter it shall
enter into force on the date of the deposit of its instrument of
ratification with the Depositary.

Upon its entering into force this Charter shall be open for accession by
any State.

For each acceding State this Charter shall enter into force on the
thirtieth day following the date of receiving by the Depositary of
appropriate instruments of accession.

Article 22
Settlement of Disputes

In case of disputes or controversies arising out of interpretation or
application of this Charter member States shall settle them through
consultations and negotiations.

Article 23
Amendments and Additions

By mutual agreement of member States this Charter can be amended and
supplemented. Decisions by the Council of Heads of State concerning
amendments and additions shall be formalised by separate protocols which
shall be its integral part and enter into force in accordance with the
procedure provided for by Article 21 of this Charter.

Article 24
Reservations

No reservations can be made to this Charter which contradict the
principles, goals and objectives of the Organisation and could prevent
any SCO body from performing its functions. If at least two thirds of
member States have objections the reservations must be considered as
contradicting the principles, goals and objectives of the Organisation or
preventing any body from performing its functions and being null and void.

Article 25
Depositary

The People's Republic of China shall be the Depositary of this Charter.

Article 26
Registration

Pursuant to Article 102 of the Charter of the United Nations, this
Charter is subject to registration with the Secretariat of the United
Nations.

Done at Saint-Petersburg the seventh day of June 2002 in a single
original in the Chinese and Russian languages, both texts being equally
authoritative.

The original copy of this Charter shall be deposited with the Depositary
who will circulate its certified copies to all signatory States.

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Learn Chinese online - Human Resource: More cash for retirees of State-owned companies

?  ?

BIZCHINA / Biz Media Digest

Human Resource: More cash for retirees of State-owned companies

(China Daily)
Updated: 2007-08-08 13:55

The central government has pledged that all retirees from State-owned
enterprises will receive an increase in pensions by the end of the month
- a move to narrow the widening income gap.

Senior technology professionals and those that receive a relatively low
pension will get an increase of 120 yuan ($15.80) and others, 80 yuan,
according to the Ministry of Labour and Social Security.

A document posted on the ministry's website yesterday said the raise
would affect about 42 million retirees and cost about 40 billion yuan.

It said the central government would offer special subsidies to the
country's central and western regions, as well as the Xinjiang Uygur
Autonomous Region in the northwest. But it also required local
governments to increase their financial input.

The decision to raise pensions for enterprise retirees over the next
three years was made last week at a State Council meeting chaired by
Premier Wen Jiabao.

A document released after the meeting said the government had already
raised their pensions in the past three years by an average of 8 percent
a year, but the present pension level was "still quite low".

To further ease social tensions caused by the income gap, the government
has decided that the increases over the next three years would exceed the
rises made between 2005 and 2007, the document said.

Liu Yongfu, vice-minister of labour and social security, has ordered
local authorities to fully implement the policies of the central
government.

"The new pensions must be paid by the end of the month," he said at a
meeting on Monday.

Investigations show that the average pension of enterprise employees is
about 750 yuan per month - the minimum salary set for developed cities,
including Beijing.

"With my pension, I can just about make ends meet. Consumer prices have
kept on rising in the first half of this year," a 71-year-old retiree Li
Xiuying said.

Zhu Deming, another 56-year-old retiree, complained the increase in his
pension in the past three years was less than that given to civil
servants or those retired from public institutions.

"But I'm happy the government is addressing the problem," he said.

The State Council last week also endorsed a plan to provide affordable
housing to urban low-income groups by 2010.

"With the country's economic boom, it's time to share the pie with all
levels of society," Chen Liangwen, an economics researcher with Peking
University, said.

(For more biz stories, please visit Industry Updates)

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Chinese Online Class - China to crack down on price-hiking producers, sellers

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BIZCHINA / Top Biz News

China to crack down on price-hiking producers, sellers

(Xinhua)
Updated: 2007-08-07 10:29

Chinese local pricing authorities have been told to crack down on food
producers and sellers that attempt to raise food prices to an
unreasonable level, said sources with the National Development and Reform
Commission (NDRC) on Monday.

Describing the nationwide campaign as a major political task, the top
economic planning agency urged pricing departments at all levels to work
hard to stabilize the food market.

The move comes in the wake of recent food price hikes that have pushed
the consumer price index, the country's inflation rate, above the
government's target of 3 percent for four consecutive months.

The campaign, mainly targeting food manufacturers, wholesale and retail
firms, will overhaul the prices for daily foods like grain, cooking oil,
meat, poultry, eggs and milk.

NDRC vowed to severely punish those who jack up food prices by revoking
their business licenses and bringing them to justice in collaboration
with the police and commercial and quality authorities.

The State Administration for Industry and Commerce also said on Monday in
an urgent circular that local governments must rid the pork market of
sellers that plot price hikes by hoarding and fabricating rumors.

The administration will also clamp down on venders of diseased and
water-injected meat.

(For more biz stories, please visit Industry Updates)

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Chinese Online Class - Citibank?sets up?China's 1st drive-through ATM

?  ?

BIZCHINA / Overseas Investment

Citibank?sets up?China's 1st drive-through ATM

(Xinhua)
Updated: 2007-08-03 15:52

Citibank has launched China's first drive-through automatic teller
machines (ATM) in east Beijing -- but only holders of bank cards issued
abroad can use them for now.

Drivers could withdraw cash and make other transactions without getting
out of their cars, said Anand Selva,the vice president with Citibank
China.

"This is just an experiment," said a source with Citibank China, adding
that the company would set up more such ATMs in Shanghai and other cities
if it worked well.

ATM business is an important way for foreign banks to expand their market
share in China, said the source.

Citibank ATMs provide services, including withdrawals, transfers and
payments, only to holders of bank cards issued abroad as foreign banks
are not yet allowed to issue their own cards in China.

"If approved by the China Banking Regulatory Commission, domestic bank
card holders will be able to use the ATM network as well," the vice
president said, without revealing when or whether the banking regulator
would give the go-ahead.

Citibank has set up eight drive-through ATMs in Asia.

In 2005, Citibank and China Unionpay made an agreement, under which
Unionpay cards are accepted by Citibank's ATMs in 35 countries and
regions globally and Citibank's international cards are also recognized
by more than 10,000 foreign card ATMs of China Unionpay.

(For more biz stories, please visit Industry Updates)

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Tuesday, December 25, 2007

Learn mandarin - China authorises 1st JV fund to invest overseas under QDII

?  ?

BIZCHINA / Center

China authorises 1st JV fund to invest overseas under QDII

(Xinhua)
Updated: 2007-08-02 11:39

China's Harvest Fund Management Co Ltd (Harvest), 19.5-percent owned by
Germany's Deutsche Bank AG, has become the first joint venture (JV) fund
approved as a qualified domestic institutional investor (QDII) authorized
to invest overseas, and is set to launch its first offshore fund within a
month.

"The specific investment quota is to be decided by the authority, but we
are actively preparing, and the new fund could be ready very soon," said
Hong Qing, associate director of Harvest's marketing department.

The first Harvest QDII fund would focus on common stocks and preference
shares of companies with major operations in China listed in Hong Kong,
Singapore, and New York. The overseas adviser of Harvest was Deutsche
Asset Management, said the company.

Related readings:
?Fund management firms to invest in overseas stock markets
?Southern Fund wins nod to invest abroad
?Insurers to be allowed to increase overseas investment
?New QDII measure takes effect

The government?adopted the QDII program last year to broaden investment
alternatives for local investors and encourage capital outflow.

Two Chinese fund management companies, China Southern Fund Management Co
Ltd and China Asset Management Co Ltd obtained approval last week after
the government expanded the program to include fund management firms.

Harvest general manager Zhao Xuejun said the program expansion was "a
major reform in financial service, and a strategic movement of the
foreign exchange system reform in China".

"The QDII program allows local investors to put their money in foreign
capital markets, and will alleviate the pressure for further Chinese yuan
appreciation," said Tan Yaling, a research analyst with the Bank of China.

However, some analysts say the demand for QDII products may not be strong
due to the bullish domestic stock markets, and the profits made in
overseas markets may be offset by currency appreciation.

Zhao agreed the appreciation of Chinese yuan brought uncertainty to
overseas investment, but he said, "Diversified global investment can
dilute the risk and guard against market slump, which may hurt badly if
the fund invests heavily in a single market."

(For more biz stories, please visit Industry Updates)

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Chinese Mandarin - Ties with ASEAN to be strengthened

?  ?

BIZCHINA / Center

Ties with ASEAN to be strengthened

By Li Xiaokun (China Daily)
Updated: 2007-08-01 08:46

China will work more closely with the Association of Southeast Asian
Nations (ASEAN) by setting up a free trade area and deepening its
partnership in finance, infrastructure, information and communications,
Foreign Minister Yang Jiechi said in Manila yesterday.

Foreign ministers of the 10 ASEAN members, as well as those from China,
Japan and the Republic of Korea (ROK), are in the Philippines capital to
attend the annual meeting of what is called ASEAN+3.

The meeting discussed issues of regional concern, including urging the
Democratic People's Republic of Korea (DPRK) to give up its nuclear
program, and cooperation in the East Asian region.

"The launch of the ASEAN+3 scheme has created a new channel for Southeast
Asian countries' unity, cooperation and mutual benefit. It is useful as
an experience, too, for regional cooperation in Asia," Yang said.

Despite the great achievements of the past decade, the region faces major
challenges ahead, including correcting the unbalanced economic growth,
tackling the threats to peace and stability and the need to enhance
competitiveness, Yang said.

Countries in the region should "respect each other and shelve their
differences to seek common ground".

At the start of the meeting, the foreign ministers stood in silence for
two of the 23 abducted South Koreans killed by the Taliban in
Afghanistan. They appealed, on humanitarian grounds, for the immediate
and unconditional release of the 21 hostages.

Yang reached Manila on Monday to attend the 14th Asia Regional Forum
(ARF), the region's largest security meeting, as well as a series of
other talks with ASEAN members and their dialogue partners.

Yang met with his counterparts from the Philippines, Singapore and
Australia yesterday.

US Secretary of State Condoleezza Rice didn't attend the ARF for the
second time in three years because of "more important" engagements
elsewhere.

"As a large country in Asia, China pays more attention to regional
affairs, while as a global power, the US is distracted by many other
concerns such as safety problems in Northeast Asia and the Middle East,"
director of Southeast Asian Studies of the China Institute of
Contemporary International Relations Zhai Kun said.

He was responding to some foreign experts who have said Rice's absence
could help China build ties and trust in Southeast Asia at the expense of
the US.

"The cooperation between China and ASEAN is not exclusive, and it's not
directed against or achieved at the expense of any country," Renmin
University's professor of international relations Jin Canrong said.

Trade between China and ASEAN, expanding by nearly 40 percent a year, is
likely to exceed $200 billion in 2008, two years before a free trade area
is scheduled for.

(For more biz stories, please visit Industry Updates)

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Chinese language - Resolving China's excess liquidity

?  ?

BIZCHINA / News

Resolving China's excess liquidity

By Xin Zhiming (China Daily)
Updated: 2007-07-27 11:50

China's trade surplus jumped 83 percent to US$112.5 billion from January
to June as its foreign exchange reserves mounted to US$1.3 trillion.

Such figures have aroused concerns not only from its trade partners, but
those who are not sure whether policymakers can handle the increasing
liquidity.

Almost all agree that excess liquidity is flooding the Chinese market,
but there is no consensus how the conclusion has been drawn.

"It's very hard to estimate the excess liquidity," said Stephen Green,
senior economist with Standard Chartered Bank. "The measure I like the
best is M2/GDP ratio, which hit 160 percent (in China) three years ago,"
he told China Daily.

M2 is the broad measure of money supply, which includes all types of
deposits and cash. It exceeded 3.7 trillion yuan by the end of June,
according to the central bank.

By the end of last year, China's M2/GDP ratio rose to 165 percent, much
higher than Japan's 143 percent and 53 percent in the United States.

Economists also use other indicators to assess the situation, such as the
gap between bank deposits and lending and the ratio of liquid assets to
overall banking assets, which all point to excess liquidity in China.

The excess liquidity has come, fundamentally, from two sources:
domestically, from accumulation of deposits; internationally, from inflow
of capital such as the foreign exchange reserves and speculative money,
according to Li Yang, director of the Institute of Finance and Banking,
the Chinese Academy of Social Sciences (CASS).

China's imbalance in its investment and consumption structure has led to
prolonged weak demand, which has exacerbated the pile-up of deposits,
said Zhuang Jian, senior economist with the Asian Development Bank (ADB)
in China.

The country's economy has been dependent on investment and exports in the
past decade, not domestic demand, although the government is trying hard
to increase consumption.

By the end of April, bank deposits held by the Chinese people amounted to
17.37 trillion yuan, nearly double the level five years ago.

It's a consensus that the public has preferred to save rather than spend
because it anticipates long-term spending pressure from the country's
restructuring of its pension, health and education systems.

China needs to raise labor wages and increase provision of such public
services as education and healthcare to enhance people's spending
propensity, Zhuang told China Daily.

The social security network must also be improved, which will also get
people more active in consumption, Zhuang said.

From a global perspective, Li from CASS said that the low savings rate of
developed countries has led to the trade deficit of these countries and
the surpluses in Asian economies. The US has kept the dollar weak and, as
a result, international markets have been awash with dollars.

Japan has seen a large-scale capital outflow into other countries. In
Europe, statistics show the capital outflow is also on the rise as euro
gets strong. It has also contributed to the global liquidity boom, Li
said. And most of the capital has flown into Asia, including China, Li
added.

Regarding capital inflow, Li suggested the holders of China's foreign
exchange should be diversified, allowing individuals and enterprises to
hold more of the reserves.

Although the central bank can sterilize foreign capital through issuing
bills, raising the banks' reserve requirement ratio or conducting
currency swaps, they can ease the pressure only temporarily, Li said.

Reforming the foreign exchange reserve management regime and allowing
individuals and enterprises to hold more foreign exchanges would reduce
the pressure on policymakers as they would need to sterilize much less
foreign currencies.

To thwart speculative money inflows, Xia Bin and Chen Daofu from the
Development Research Center suggested that policymakers should allow more
volatile yuan trading, making the currency's long-term trends
unpredictable.

"Authorities should allow the yuan to rise in a mixed tempo, sometimes
slowly and sometimes quickly, to completely break the possibility for the
market to predict the yuan's appreciation," they said in the report.

China also needs to raise its interest rate, because hot money holders
not only want to benefit from a revalued yuan, but profit from the rising
prices of assets. "The rising asset prices are closely related to our low
interest rate," the economists said.

(For more biz stories, please visit Industry Updates)

Related Stories ?

� Forex reserves top US$1.33 trillion, up 41.6%
===========================================================================
� China's M2 growth underestimates inflation pressure
===========================================================================
� China March M2 money up 17.3 percent
===========================================================================

Chinese language

Learn mandarin - CPI growth to slow in 2nd half

?  ?

BIZCHINA / Center

CPI growth to slow in 2nd half

By Fu Jing (China Daily)
Updated: 2007-07-26 08:21

Consumer prices in China are projected to grow at a slower pace in the
second half of this year after rapid increases from January to June, an
official from the National Development and Reform Commission (NDRC) said
yesterday.

?
Discounted?instant noodles are snapped up in Weifang, Shandong Province
July 25, 2007. Consumer prices in China are projected to grow at a slower
pace in the second half of this year after rapid increases from January
to June. [newsphoto]

The level of the increase in the months ahead will depend on the harvest
of farm products this autumn, as food has been the main factor driving
this year's rise in the consumer price index (CPI), said Cao Changqing,
the NDRC pricing director.

His projection came following a 3.2 percent CPI growth in the first six
months and a 4.4 percent rise in June, the most rapid increase in 34
months. Up to 78 percent of the jump in the first six months was due to
rising food prices.

Related readings:
?100 economists appraise China economy
?Instant noodle prices up as high as 40%
?Central bank raises interest rates, cuts interest income tax
?GDP grows 11.5% in first half

"We feel that prices are now climbing slowly, in a relatively steady
manner," Cao said.

He added that the nation's grain reserves are adequate.

China's Agriculture Minister Sun Zhengcai recently forecast a fourth
consecutive bumper harvest this year, and expects to meet the annual
target set for 2010, three years ahead of schedule.

The NDRC said the government's main role is to prevent the economy from
overheating.

Zhu Hongren, deputy director of the macroeconomic development department
under the NDRC, said the government will use economic and legal policy
tools to cool the growing pace of the economy.

Accelerating inflation also pushed real interest rates further into
negative territory, prompting regulators last week to raise interest
rates and slash taxes on interest income from bank deposits.

China's gross domestic product expanded by 11.9 percent in the second
quarter and by 11.5 percent in the first half of the year. Fixed-assets
investment in urban areas jumped 26.7 percent in the first half over a
year earlier, up from 25.3 percent in the first quarter, while industrial
output climbed 19.4 percent in June.

(For more biz stories, please visit Industry Updates)

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