China :: Business & Economy

Watch Video Play Video Guided by a stronger mid-point from China's central bank, the yuan hit an all-time trading high against the dollar, at around 6.33, on Monday. Traders say it looks set for an four percent plus appreciation for 2011. The Peoples Bank of China set the dollar/yuan mid-point at 6.31 on Monday, from Fridays 6.32. The yuan is expected to remain stable or rise slightly in the last week of the year, to close 2011 near 6.3 versus the greenback. Traders say the currency is likely to continue to appreciate next year. But the pace may slow to around three percent, with much of the rise to be seen in the second half of 2012. China is expected to keep the yuan relatively stable in the first half, to assess the impact of the ongoing eurozone crisis. The yuan has appreciated 4.1 percent so far this year, with most of the gains seen in the first 10 months. Thats as China tries to rebalance trade and use its currency to help fight high inflation. Related stories Yuan hit...

China's economic growth is expected to fall to about 8.5 percent in 2012, but only if the ongoing eurozone debt crisis doesn't evolve into a new global economic meltdown, a senior economist of the State Council's policy research think tank said on Monday. In an exclusive interview with China Daily, Yu Bin, director-general of the department of macroeconomic research at the Development Research Center of the State Council, said that economic growth is likely to dip below 9 percent in the fourth quarter, but full-year growth may be slightly higher. "Eastern coastal cities saw obviously slower economic growth in 2011. Meanwhile, the potential for additional investment in infrastructure continues to shrink, signaling that the potential for economic growth has started to decline," said Yu. China has entered the final stages of high-speed economic growth after three decades of rapid expansion, said Yu, adding that the economy is under pressure, caused by short-term slug...

Annual growth of China's industrial production is expected to slow further, to around 11 percent, in 2012, Minister of Industry and Information Technology Miao Wei said Monday. The growth was lower than the 15.7-percent increase in the country's industrial value-added output in 2010 and an expected 14-percent rise for this year. The industrial value-added output measures the final output value of industrial production, or the value of gross industrial output minus intermediate input, such as raw materials and labor costs. Miao said at the ministry's annual work conference that the forecast has considered the targets set in the country's 12th Five-year Program (2011-2015) and the negative impact of increasing difficulties and uncertainties as some deep-rooted problems of the global financial crisis continue to weigh. He expects the country's energy use and carbon emissions per unit of industrial value-added output to reduce by 5 percent and more than 5 percent year-o...

Watch Video Play Video Indias auto industry has been a booming one for the last five years, with global auto giants making the country one of their priority markets. But 2011 hasnt kind to the industry. CCTVs India correspondent tells us more about the volatility of the Indian car industry this year. The year 2011 was a game of seesaw for the Indian car industry. A year that will be known as one of the most unpredictable ones. An industry booming at an average 30 per cent growth fell down to such lows that experts say a 2 to 3 per cent growth for the year 2011 is all that one can expect. This despite a slew of launches in the segment that is considered one of the most lucrative segments in India the small car segment. Chairman of NICCO Corporation Rajive Kaul said, "I think the problem if at all will be in the timing of the launches, the type of models, the customer preferences, the reading of customer preferences, other things also have to be taken into account. But certai...

China's central government is stepping up fiscal spending on the development of agriculture and rural regions as well as on the improvement of farmers' livelihoods, in efforts to bridge gaps of wealth distribution and urban-rural development in the world's second largest economy. Xie Xuren, minister of finance, said Sunday that fiscal spending from the central government for agriculture-related projects and farmers are likely to top 1.04 trillion yuan (164 billion U.S. dollars) this year, which represents a 21.3-percent surge compared to the figure last year. To boost agricultural development, the fiscal expenditures have served the construction of more water-related facilities at farmlands and consolidation of small reservoirs. The central government has also urged financial institutions to increase lending to agriculture-related businesses through incentive policies, Xie said at a national finance work conference held Sunday in Beijing. Local governments' finance depa...

Central China's Henan Province plans to build the world's largest manufacturing base for smart phones starting next year, local authorities said on Saturday. The base will be centered on the Foxconn Science Park in Zhengzhou, provincial capital of Henan, increasing its current production lines to 95,said the Henan provincial development and reform commission during a conference. The expansion plan, costing 7 billion yuan (1.1 billion U.S. dollars), is expected to bring 20 billion U.S. dollars in sales revenue in 2012, the commission said. Foxconn, the world's largest contractor of electronic components and principal supplier to Apple, opened new factories in Henan and Sichuan last year, targetting low labor costs and rising markets in the inland provinces. The new plant in Zhengzhou has reached a daily production of 200,000 Apple iPhones and employed 130,000 people, said Guo Gengmao, governor of Henan Province. The company currently employs 1.2 million people, with about 1 ...

China should get prepared for trade deficit in the coming 2012 due to the grim global outlook, while seizing the chance to make structural adjustment in foreign trade, the country's former vice minister of commerce Wei Jianguo saidin Beijing onSaturday. Wei Jianguo, now secretary-general of the China Center for International Economic Exchanges, said at an economic forum that with export gradually falling, growth in China's foreign trade is likely to drop to single-digit next year. For China, the year of 2012 will be the most "unpredictable, complicated, grim and difficult" year since the financial crisis three years ago, he said. "We should get ready for trade deficit next year, which is also the best time to adjust the country's foreign trade structure," said Wei. China should also prepare for trade wars, as many countries are working to boost exports to protect themselves amid the dim global economy, he added. Wei warned that the country is likely to f...

Shanghai, the world's busiest container port, will consolidate its title this year and leverage its record throughput to become a multi-faceted provider of port services. Containers lie at the Waigaoqiao port in Shanghai yesterday when the city witnessed 30 million TEUs cross its ports. [Shanghai Daily] The city, which overtook Singapore as the world's biggest container handler last year, saw its annual container traffic volume surpass 30 million 20-foot equivalent units (TEU) yesterday. The figure hits an unprecedented level in the world's port history and marks a new leg in Shanghai's voyage to become a global shipping center by 2020. China's remarkable trade boom is reflected in the Shanghai port numbers, which went from 7,951 TEUs in 1978 to 29.05 million TEUs in 2010. The city's customs oversaw a total of US$790 billion worth of imports and exports in the first three quarters of this year - a 19.3 percent year-on-year increase. And its port handled 23.9 mil...

Watch Video Play Video US retailers say holiday sales are up over last year, but still well below where they were before the recession. As Steve Mort reports from Colorado, business owners are still having to offer incentives to consumers - many of whom remain wary of spending. At this mall in Denver, the holiday shopping season is in full swing. In many stores, special offers are in place to entice consumers in Americas cut-throat Christmas market. Many retail chains says theyre expecting better sales figures than previous years, as the US economy shows slow, but steady, signs of improvement. Wendy Manning, Marketing Director of Denver Pavilions Mall, said, "Things are getting better, people are coming back, they are being a little more loose with the pocket-book, its not all just necessity items right now. Were seeing other things trending - gadgets, theres a big fashion trend with micro-trend and faux fir and a lot of bling, so were seeing more discretionary income coming...

Despite the benefits Beijing's license plate quotas may have had on the city's troubled traffic situation, it stunted local car sales and forced automobile dealers to change their business strategies. A lottery drawing for car license plates in March in Beijing. The odds against winning the right to register a vehicle in that drawing were 23 to 1. [Xinhua] According to Su Hui, an official with the China Automobile Dealers Association, whole year sales of new vehicles are expected to plummet from last year's 890,000 units to 400,000 for 2011. Beijing adopted a policy a year ago to cut down city traffic by limiting the amount of new license plates. Since January, new license plates are issued through a lottery system. "Hampered by the lucky-draw policy, Beijing sold 355,000 vehicles in the first 11 months, a sharp, 53 percent decline from a year earlier. And the downturn will get worse in December," said Su. "Even the still-booming luxury car segment slowed yea...

FRANCE'S statistics agency yesterday said the economy grew less than previously estimated in the third quarter of this year, as a new recession looms for Europe's No. 2 economy. The Insee agency said gross domestic product grew 0.3 percent instead of 0.4 percent, in revised figures. It cited in part new figures on industrial production. The French GDP shrank in the second quarter and Insee expected it to fall again in the fourth quarter and the first quarter of next year.

Denmark retains its Aaa credit rating, but its long-term growth prospects are a cause for concern, ratings agency Moody's said late Thursday. "The government's top-notch ratings reflect Denmark's stable macroeconomic and political environment and relatively healthy government balance sheet," Moody's said in a statement. It added that Denmark's rating outlook remains "stable." The triple-A rating, the highest possible, appears to confirm Denmark's status as a relatively better economic performer during the ongoing European debt crisis. Moody's said Denmark's diversified economic base, which includes agriculture, oil and gas production, and trade and services, has helped support its economy which was worth over 300 billion U.S. dollars in 2010. "The country's long-term economic strength is less impressive, however, given the weak growth performance in the past decade, although incomes did benefit from favorable trends in the te...

Watch Video Play Video Its just one week left before the EUs carbon emission tax takes effect. We take a look at the financial implications of the plan for Chinese airlines. China has joined Washington in opposing a unilateral plan by the European Union to impose carbon emission charges on all airlines in its airspace from the first day of 2012. Earlier this month, the China Air Transport Association urged the countrys airlines to refuse to take part in the scheme, and not to submit CO2 monitoring plans to EU officials. But the costs may be unavoidable. Once the scheme kicks in, airlines say theyll need to increase costs - at a budget of around 700 million RMB, or around 100 million U.S. dollars every year. Li Jiaxiang, director of Civil Aviation Administration of China, said, "As the countrys top civil aviation regulator, we are negotiating with the EU on the carbon emission fees through diplomatic channels. The EU should take the reality of developing countries into consid...

SHANGHAI consolidated its title as the world's largest container port as the city today celebrates becoming the world's first port to handle more than 30 million twenty-foot equivalent units this year. Shanghai's container throughput is expected to stand at 31.5 million TUEs this year, company executives said at today's ceremony. Shanghai overtook Singapore to become the world's largest container port in 2010 as it benefited from growing export volumes from inland regions. In the first 10 months of this year, Shanghai's port handled 23.9 million TEUs, just ahead of Singapore Port's 23.56 million TEUs. The State Council, China's cabinet, in April 2009 mapped out detailed guidelines to build Shanghai into an international financial center and a global shipping hub by 2020. Further favorable policies include a business tax exemption on international shipping revenues for shippers registered at the Yangshan Deep Water Port. Exemptions were also given to logi...

China's wealth gap is growing with a marked increase of the countrys wealthy community, according to the latest survey. The number of families with investable assets of more than 6 million yuan will reach 1.21 million from 1.01 million in 2010, according to a study by the Boston Consulting Group and China Construction Bank. The investable assets owned by wealthy families should reach 27 trillion yuan this year, compared with 23 trillion yuan last year, the study said. Up to 35 percent of such families live in Shanghai, Beijing and Guangdong Province. The study was based on surveys among more than 2,100 high-net-worth individuals. The wealth overseen by asset managers surged 33.7 percent to US$ 8.2 trillion in 2010, compared with the world's average level of 9.2 percent, and is expected to expand at a compound annual rate of 14 percent till 2015. Families in China with investable assets of more than 50 million yuan are outpacing the less wealthy majority of high-net-worth famili...

THE number of Chinese people intending to buy homes has dropped to its lowest since 2008, with housing losing its appeal as the most preferred investment option for individuals, a central bank quarterly survey showed yesterday. About 13.9 percent of respondents said they planned to buy a home in the next three months, down 0.3 percentage points than a quarter ago, the lowest since the People's Bank of China included the question in its quarterly household survey in 2008, the bank said yesterday. The survey was released after data showing that an increasing number of Chinese cities reported falls in new home prices last month. Excluding government-funded affordable housing, prices fell in 49 out of 70 cities in November, the National Bureau of Statistics said. That compared to 17 in September and 34 in October. "The real estate industry has entered a chilly winter," China International Capital Corporation said in a report yesterday. "Home transactions and prices will ...

The economic growth of Beijing dropped two percentage points this year, largely as a result of controls implemented on car and home purchases, which were intended to ease traffic jams and rein in rocketing home prices, according to a top municipal official. The relocation of Shougang Group, a heavyweight steel maker, also contributed to the slowdown of the city's gross domestic product (GDP), said Liu Qi, secretary of the Beijing Municipal Committee of the Communist Party of China (CPC). The iron and steel making facilities relocated to Caofeidian of Tangshan City in Hebei province as part of Beijing's efforts to reduce pollution. Despite the shrinkage, Beijing can still reach its goal of 8-percent GDP growth, said Liu at a plenary session of the committee, which was held from Dec. 19 to 21. The economic growth of Beijing drops two percentage points this year, largely as a result of controls implemented on car and home purchases. The municipal government decided to limit the nu...

OIL prices rose yesterday after a government report showed a dramatic drop in US crude supplies. Benchmark crude rose US$1.43 to finish at US$98.67 a barrel in New York. Brent crude was up 98 cents, ending at US$107.71 a barrel in London. Oil inventories typically fall at the end of the year because refiners draw down their inventories for tax reasons, but yesterday's drop was far larger than analysts expected. The Energy Information Administration said yesterday that inventories fell by 10.6 million barrels. Analysts on average forecast a drop of 2.3 million barrels, according to Platts, the energy information arm of McGraw-Hill. Phil Flynn, an analyst at PFG Best in Chicago, said inventory declines in recent weeks have been slower than normal, so refiners were likely playing catch-up. "They are hiding it from the tax man," he said. After the first of the year, refiners will start building up their supplies again. Oil prices were also pushed up by better global economic ...

The Hong Kong Monetary Authority (HKMA) welcomed the announcement by the China Development Bank (CDB) on its issuance of renminbi bonds in Hong Kong through the bond tendering platform of the Central Moneymarkets Unit (CMU) of the HKMA. An HKMA spokesperson said Wednesday that CDB will be the first Mainland financial institution to make use of the CMU platform to issue renminbi bonds. It signifies a continual deepening of financial cooperation between the Mainland and Hong Kong, and widening of channel and enhancement of methodology and environment for the issuance of renminbi bonds in Hong Kong. "We look forward to seeing more issuers to make use of the CMU platform to issue renminbi bonds in the offshore renminbi market," said the spokesperson. The CMU is operated by the HKMA. It serves as a platform for tendering, clearing and settlement of bonds. China Development Bank Corporation (CDB) said Wednesday that CDB proposes to issue RMB bonds in Hong Kong through the CMU BID s...

Hoku Corporation, a solar energy product company based in Hawaii in the United States, has started production of polysilicon as the first project after a majority of the company was purchased by a Chinese company. The project, with annual capacity of 2,500 tonnes, began operation on Dec. 1 local time, said Ding Qiang, chairman with the Tianwei New Energy Holdings Co., Ltd. (Tianwei), on Wednesday. Approved by the National Development and Reform Commission (NDRC) in December 2009, Tianwei bought 60 percent of Hoku shares at the beginning of last year. Ding said Tianwei had also signed a distribution agreement with Hoku, assigning Hoku to be the distributor for its sales of modules in the U.S., Canada and south American regions. The company invests in local industries to seek win-win development with American photovoltaic companies, Ding said. Ding said the U.S.-based Coalition for Affordable Solar Energy issued a letter Thursday to solar-panel maker SolarWorld to withdraw its petition a...

Oil prices soared on promising economic news out of Europe and the US. Benchmark crude yesterday rose US$3.34, or 3.6 percent, to end the day at US$97.22 per barrel in New York. Brent crude, which is used to price foreign oil that's imported by many US refineries, rose US$3.09, or 3 percent, to finish at US$106.73 per barrel in London. Major US stock indexes were up around 3 percent in afternoon trading. Prices climbed on encouraging news about the global economy. Germany reported that business and consumer confidence rose unexpectedly in December, and Spain's borrowing costs plummeted in a debt auction as the country promised more austerity measures to resolve its debt problems. In the US retailers said holiday sales jumped last week, while the government reported a surge in apartment construction and building permits in November. If consumer spending and construction activity continue to grow, demand for oil will likely follow. PFGBest analyst Phil Flynn said that oil traders...

CNOOC Ltd, China's dominant offshore energy producer, has reported another leak in a subsea gas pipeline that forced it to close production at two fields in the South China Sea. The leakage was found in the pipeline near CNOOC's Zhuhai Hengqin gas processing terminal, the Hong Kong-listed company said in a statement yesterday, adding it has shut down the production of relevant platforms in the Panyu 30-1 and Huizhou 21-1 fields. CNOOC said this would cause a loss of around 26,700 barrels of oil equivalent per day. That's about 22 percent of CNOOC's total domestic gas production, or 3 percent of its total energy production per day. "While it's still unclear how long it will take CNOOC to fix the problem, we expect it to take normally around 3-4 months to fix a subsea pipeline problem," analysts at Sanford C. Bernstein wrote in a note today. No injury or environmental pollution has been reported and the situation is under control, CNOOC said. The cause of th...

China's new two-year anti-dumping and anti-subsidy tariffs on cars imported from the United States are not expected to have a great impact on the automobile industry, analysts said. The automakers affected by the policy change meanwhile said they are considering whether the new duties will lead them to increase the prices of their vehicles. On Wednesday, the Ministry of Commerce said the new tariff rates will range from 2 percent to 21.5 percent and the tariffs would be imposed starting the following day on cars and SUVs that were built in the US and have engines of 2.5 liters or larger. The decision was the latest retribution inflicted in a series of trade disputes that has recently arisen between China and the US. Chinese authorities, saying US imports were "damaging the local car industry", imposed the new tariffs on these companies or operations: General Motors Co (GM); Chrysler Group LLC; Mercedes-Benz US International Inc; BMW AG's factory in Spartanburg, South ...

THE average price of new apartments fell to the lowest in over nine months in Shanghai last week as property developers cut prices to trigger demand from budget-conscious home buyers. New homes, excluding government-funded affordable housing, were sold at an average 18,944 yuan (US$2,993) per square meter during the seven days, a weekly drop of 21.2 percent, according to research released yesterday by Shanghai Deovolente Realty Co. The transaction volume soared 48.8 percent from a week earlier to 149,000 square meters. "More than half, or 57 percent, of new homes sold across the city last week cost less than 15,000 yuan per square meter and the weekly average price had fallen to the lowest since early March," said Lu Qilin, a researcher at Deovolente. "The city's five bestselling projects last week were all sold at a cheaper price than that," Lu said. A development in Qingpu District by Guangzhou R&F Properties became the most sought-after project last week ...

A second duty-free shop will open in south China's island province of Hainan on Wednesday, marking the full implementation of the region's trial program for duty exemptions, local authorities said Monday. The new shop will open to visitors at the Meilan International Airport in the provincial capital of Haikou, said Tan Li, vice governor of Hainan, at a press conference. The shop, with more than 100 staff members, is operated by the newly-founded state-owned Hainan Provincial Duty Free Co. Ltd., Tan said. The government launched a pilot program in April to allow tourists and locals in Hainan to enjoy duty exemptions and tax refunds on certain imported products worth less than 5,000 yuan (about 794 U.S. dollars) before flying to other airports in China. The move is part of efforts to lure more mainlanders to the tropical island and build it into a world-class tourist destination by 2020. After deducting customs duties, value-added taxes and consumer taxes, products sold at duty-...

THE Shanghai Composite Index plunged 2.57 percent in morning trade today as slumping home prices shook investor confidence. The benchmark index deflated to 2,167.68 points as the market entered what seems likely to be its seventh week of losses. The property sector fell by 2.74 percent, with only four risers out of 128 companies in total. Home prices further dropped in November, according to data released by the national statistics bureau yesterday. China's 49 biggest cities out of 70 posted lower new home prices in November, that is more a half of all cities being watched by the government. New home prices among the major cities slid by 0.35 percent compared to October. In the second hand home market, 51 cities posted dropping prices -- revealing an even grimmer situation than in the new home market. "The declining of home prices in the two preceding months is only the start," said Shanghai Securities Times today. "The government is unlikely to relax its property cu...

Experts said that China should establish a long-term mechanism to support the development of its real economy, as the government has set its sights on boosting real economic growth and promoting entrepreneurship. According to a statement released on Wednesday after the country's annual central economic work conference, China will "take a firm hold" on real economic development and create a social atmosphere that encourages acquiring wealth through entrepreneurship. "Real economy" refers to the part of the economy associated with the actual production of goods and services, including agriculture, manufacturing and the service industry. It is the foundation of a country's comprehensive strength and the material basis of people's livelihoods, analysts said. "China's major task at present consists of economic restructuring and promoting economic growth, and thus it is crucial to restrain speculation and encourage real economic development," sai...

China-ASEAN relations, with their massive Free Trade Area in the limelight, have largely been touted in economic and trade facet, but the other side of the coin is a flourishing partnership in other areas, in a bid to enhance mutual trust and all-round cooperation. Almost two years after the ASEAN-China Free Trade Area (ACFTA) came into effect on Jan. 1, 2010, bilateral trade is in full swing. The ACFTA is the largest free trade area in terms of population and third largest in nominal GDP, trailing the European Economic Area and North American Free Trade Area. China-ASEAN economic cooperation has never been more dynamic and fruitful, as China has become ASEAN's largest trading partner and ASEAN remains China's third largest trading partner with an average annual growth rate of more than 20 percent and had grown 37 times over the past two decades. Besides, China was the first outside power to sign the Treaty of Amity and Cooperation in Southeast Asia (TAC) with the ASEAN, the f...

The U.S. International Trade Commission (USITC) Friday launched a probe into certain products from China after several U.S. companies alleged their patents were infringed. The products in question include televisions and Blu-ray players produced by Haier Group of China and Vizio Inc. under Taiwan-based Amtran Technology Company and sold in the U.S. market, the USITC said.` Five U.S. technology companies filed a complaint with USITC last month, saying those products violated Section 337 of the Tariff Act of 1930 by infringing their patents. Meanwhile, they requested the USITC issue an exclusion order and a cease and desist order against those products from China. The trade panel is scheduled to set a target date for completing the investigation within 45 days after institution of the probe. If the complaint is approved, the agency will ban importation of those products. The U.S. move came at a time when protectionism is making a comeback in the United States amid sluggish economic recov...

ONLINE video website Tudou plans to sue arch-rival Youku.com in Beijing and will demand 150 million yuan (US$23.6 million) in compensation for infringement of patented contents. Tudou has said Youku is illegally airing the entertainment program series "Kangxi is Coming," whose exclusive online broadcasting rights on the Chinese mainland were granted to Tudou by Taiwan's TV station CTI Television. "Kangxi is Coming" updates one episode every day and Tudou's one-year exclusive broadcasting right started from December 1. Earlier this week, Youku also filed a lawsuit against Tudou in Shanghai, alleging Tudou is broadcasting more than 50 other TV series whose patents are owned by Youku. Tudou, however, refuted these claims and said it already owned the broadcasting rights of these contents, or had deleted links to some of the episodes for which it didn't have patents. Sources close to Tudou revealed that patent fees for "Kangxi is Coming" is about 1...

China issued rules for pilot programs of RMB Qualified Foreign Institutional Investors (RQFII) on Friday, formally giving a green light to investment of overseas RMB funds in mainland securities markets. Hong Kong subsidiaries of fund management companies and securities firms can use RMB funds raised in Hong Kong to invest in mainland securities within a permitted quota, according to the rules jointly released by the China Securities Regulatory Commission, the People's Bank of China and the State Administration of Foreign Exchange. The total investment quota of RQFII pilot programs is set at around 20 billion yuan (3.15 billion U.S. dollars), according to the rules.

THE Shanghai Composite Index snapped out of a six-day decline on loosened domestic credit and improved US economic data. The key index rose to 2,181.22 points by 0.01 percent in the morning. The media and entertainment sector led the rise. Money-market rates declined for the third week, indicating the central bank is gradually easing monetary policies. Shenzhen banks followed the example of banks in Beijing and Shanghai and cut mortgage lending rates for first-home buyers, said Securities Times. However, Xiao Gang, chairman of Bank of China said in a commentary published today that European banks could withdraw credit from Asian markets due to its debt crisis. He also urged Chinese policy makers to be alert of these changes and further ease monetary policies. The drop in US jobless claims to a three-year low came unexpected and eased worries about the impact of the European debt crisis on the global economy. The media and entertainment sector rose by 1.02 percent, leading the market...

China's manufacturing sector is expected to maintain its contraction in December, according to the reading of the preliminary HSBC Purchasing Managers' Index (PMI), which came in at 49 on Thursday. The contraction may prompt the government to alter its policies to those more oriented towards growth. The estimated PMI is 1.3 points higher than HSBC's final November index of 47.7, which was the sharpest fall since March 2009, indicating that the manufacturing sector is shrinking at a slower rate than previously. A reading below 50 means contraction, while one higher than 50 indicates expansion. HSBC's PMI figure was lower than 50 in each month between July and September, before rebounding to 51 in October, indicating that economic growth is slowing. "Although the pace of the slowdown stabilized in December, the manufacturing sector remains weak, with additional downside risks," said Qu Hongbin, chief China economist and co-head of Asian Economic Research at HSBC...

THE United States, the European Union, Japan and other countries have agreed after 14 years of talks to give foreign companies greater ability to compete for each others' government procurement contracts. The World Trade Organization estimated the agreement could add between US$80 billion and US$100 billion to global trade each year. Government supply contracts typically come to about 15-20 percent of a nation's gross domestic product. Officials said the pact was reached after the 27-nation EU and Japan ironed out remaining differences early yesterday. As part of the 42-nation deal, Japan will allow foreign firms to bid for contracts to rebuild areas hit by this year's tsunami. The agreement, which takes aim at corruption and favoritism in supply contracts, tries to create an incentive for governments to find cheaper ways to do business and come up with more money to repay debt. It generally applies to goods and services over US$200,000 and construction projects starting at...

Watch Video Play Video Cross-Strait ties between the Chinese mainland and Taiwan continue to get warmer. At this years ECFA Business Opportunities and Partnering Forum this week, some 200 Chinese mainland participating companies brought more than 350 million US dollars worth of business opportunity to Taiwan. To remind you, the ECFA, or Economic Cooperation Framework Agreement, is a preferential trade pact between the two sides that aims to reduce tariffs and commercial barriers. This years ECFA Business Opportunities and Partnering Forum took place in three Taiwan cities - Taipei, Kaohsiung and Tainan. It offered one-on-one purchasing negotiations for small and median sized firms on both sides. Taiwan fruits are popular in the mainland market. The "early harvest" list of tariff concessions covers over 500 Taiwan products and almost 300 mainland Chinese goods, including food, and local special products. Wang Liaoping, president for the Taiwan Strait Assoc. of Economy ...

THE Shanghai Composite Index continued to drop for the 6th straight day on slumping gold prices, and a worse-than-expected conclusion to the Central Economic Work Conference in Beijing. The key index fell 1.11 percent to 2,203.84 points in the morning. The non-ferrous metals sector led the fall. Gold spot prices fell eight percent in the preceding three days, Bloomberg said, and dropped as much as 0.2 percent to US$1,570.38 an ounce today. Worries have emerged that a strengthening US dollar will further drive down gold prices to an even lower level. Investors were disappointed by the results of the three-day Central Economic Work Conference that concluded in Beijing yesterday. According to Xinhua news, policymakers have set the tone for next year's policy as 'stabilizing.' A proactive fiscal policy and a prudent monetary policy will be maintained in 2012 to sustain economic growth and social stability.

CHINA will impose a two-year anti-dumping and countervailing duties on some United States-made vehicles from today, the Ministry of Commerce said yesterday, as bilateral trade tension between the world's two biggest economies looks set to rise. The tariffs, targeting sedans and sport-utility vehicles with engine capacity above 2.5 liters, will range from 8.9 percent to 12.9 percent for General Motors, the ministry said in a statement. Chrysler Group, which imports Jeep SUV models to China, will face punitive duties of 6.2 percent to 8.8 percent. The US division of Daimler AG's Mercedes-Benz will face 2.7 percent, BMW's US unit 2 percent, and 4.1 percent for Honda's US unit. The ministry said its decision was based on a May 5 ruling after an investigation found that dumping and subsidy practices of the US automakers have damaged the domestic industry substantially. But the affected carmakers expect their overall business performance may not be significantly affected beca...

SHANGHAI'S key stock index fell for the fifth consecutive day over worries that China is facing a deeper economic growth slowdown as Europe's debt crisis threatens exports and housing sales are slumping. Furthermore, the Fed retreated from stimulus policies to boost the US economy after its policy meeting, and left the federal-funds rate unchanged yesterday. The Shanghai Composite Index fell 0.89 percent to 2,228.53 points. Its earlier rebound in the morning trade was not sustained and the benchmark index continued to slide in the afternoon session and closed at a new low. A news release by the Conference Board China Center today indicated a dip in the leading economic index by 0.1 percent in October. "The conference board LEI for China declined for the first time since the end of last year in October, and it's six-month growth rate remained lower than mid 2010," reports showed. Andrew Polk, the conference board's resident economist, further commented on the r...

CHINA will maintain "a proactive fiscal policy and prudent monetary policy in 2012," according to a statement released after the high-level Central Economic Work Conference which ended today. The outcome of the conference of China's top leaders echoed the tone set by a similar meeting held by the Politburo of the Communist Party of China on Friday. China faces the dual-pressure of an economic growth slowdown and rising inflation, officials at the three-day meeting agreed. China will strengthen the forward-looking nature of its macro economic policy to maintain a relatively fast economic development rate and stable inflation. The country will also increase the number of middle income citizens amid its economic development, the conference said. China's top leaders and economic planners gathered for the three-day conference in Beijing, which summarized China's economic performance this year and set guidelines for the year ahead.

Watch Video Play Video Retail sales in the United States experienced a slowdown in November rising just 0.2%. And with sales lower than expected, retailers have countered by offering major discounts. For retailers, this is the season to be nervous. Total US retail sales rose a lower-than-expected 0.2% in November. Thats a slowdown from the upwardly revised gain of 0.6% the month before, according to figures by the Commerce Department. Novembers rise was the weakest in five months, but its still early in the crucial holiday shopping season says American economist Brian Jones of Societe Generale. Customers shop for electronics items during 'Black Friday' at a Best Buy store in San Diego, California. US retail sales on Black Friday hit a new record for the start of the holiday shopping season that follows Thanksgiving, according to early estimates. (AFP Photo/Sandy Huffaker) He said, "We really dont have a full tally on how good the late November and the Thanksgiving s...

Container carriers berth at a port in Xiamen, southeast China's Fujian Province. The city handled 130 million tons of cargo in the first 10 months of this year, an increase of 14.8 percent from a year earlier, local statistics have shown. Its container throughput grew 9.7 percent on an annual basis to more than 5.22 million TEUs (twenty-foot equivalent units) in January-October.

SHANGHAI'S key stock index fell for the fourth consecutive day after data revealed a Chinese housing sales slump and rating agencies said the European Union summit provided a limited resolution to the bloc's sovereign debt crisis. The Shanghai Composite Index fell 1.87 percent, or 42.95 points, to 2,248.59 points, the lowest since March 2009. The closing was near its 14 June, 2001, level when the benchmark index reached its highest since Shanghai's stock market opened in the early 90s. The drop followed US and European market tumbles after Moody's Investors Service and Fitch Ratings said that last week's EU summit had failed to produce a solution to the debt crisis and boost economic growth in Europe. The warnings added to worries that China's exports will be threatened by the financial woes of its largest trade partner. Property developers led the decliners after data showed that housing transactions in 13 cities out of 35 tracked by Soufun.com, the nation'...

China's industries will remain the most competitive in the global market in 2012, but their strength will be weakened due to the impacts of the global financial crisis, a government think tank report said Monday. According to a blue paper published by the Chinese Academy of Social Sciences (CASS), two important factors -- stagnant growth in developed economies and pressures on the yuan's appreciation -- will trim down the global competitiveness of Chinese industries in 2012. Chinese industries will still maintain the top position in terms of global competitiveness next year, but its shares in global exports showed signs of downward trending in 2011 and risks of a decline in 2012, Zhang Qizi, a researcher at the Institute of Industrial Economics of CASS, said at the press conference held to release the report. "The global economic slump will put great pressures on China's exports. As trade protectionism against Chinese products is on the rise, global trade is unlikely t...

Three major ratings agencies said on Monday that last week's EU summit was not enough to ease pressure on eurozone sovereign debt since no decisive initiatives were adopted, warning to review the region's credit. "The communique issued by European policy-makers after the recent euro area summit offers few new measures and therefore does not change our analysis of the rising threat to the cohesion of the euro area and the further shocks to which it and the wider EU remain prone." Moody's Investors Service said in a release. The ratings agency said it planned to complete its re- evaluation of all EU countries during the first quarter of 2012. " As we announced in November, unless credit market conditions stabilize in the near future, our ratings of all EU sovereigns will need to be revisited." Moody's was echoed by its rival Fitch, which agreed that "the lack of a comprehensive solution has increased short-term pressure on eurozone sovereign credi...