China :: Business & Economy

Shell Global Solutions International BV (SGSI), a division of the energy giant Royal Dutch Shell PLC, said an increasing number of Chinese oil refineries are looking to use its platform to lower the sulfur content in low-grade oil and achieve quicker returns. As Chinese demand for cleaner energy resources grows, energy players are exploring business opportunities to gain a share in the market. SGSI says its platform helps refineries to improve operational performance, revamp equipment, and meet growing governmental product specifications and the differing global and regional regulations on emissions, said the company. "China has a big market for high-end technologies in the refining industry because of the stricter carbon-emission standards which are due to come into force in 2012," said Suleyman Ozmen, vice-president of the refining and chemicals licensing department at SGSI. "They (refiners) have to make a profit in a difficult market, so they are urgen...

A tainted drink scandal is continuing to spill across the mainland with the discovery of a second contaminated product from Taiwan. More than 200 cases of tainted asparagus juice, produced by Uni-President of Taiwan, were imported by merchants in Fujian province but were not distributed, said Yang Shou-cheng, mainland spokesman for Uni-President, a major beverage producer from Taiwan. The juice was found to have been contaminated with DEHP, a plasticizer that makes plastic soft and pliable, and can affect hormone balances in young people. Yang said the tainted beverage was not purchased through official importing procedures, and the vendors were informed of the contamination on May 28 and told to retain the product. Yang added that the tainted product was made in Taiwan, and the products made by Uni-President on the mainland exclusively use local ingredients. Last week, China's top quality watchdog announced that DEHP-contaminated cases of Yes Sports Drink from Taiwan had entered S...

A Makro wholesale outlet in Johannesburg, South Africa, is part of the Massmart chain. South African regulators approved Wal-Mart's 17 billion rand (US$2.4 billion) bid to buy a controlling share of South African chain Massmart in a ruling yesterday that followed a fierce debate over protectionism in the country.

Up to 67 percent of Chinese believe that they will be better off than their parents after retirement, according to a survey by HSBC. This optimistic attitude puts China in second place following India, which recorded 69 percent far exceeding developed countries. In a survey of 17,000 working adults in 17 countries and regions, HSBC found that Chinese feel more hopeful and relieved about their post-work lives, which is attributed to the remarkable economic growth over the past years. Nearly one in five respondents claimed they were well prepared for retirement. Around 40 percent of participants think that the endowment insurance will become the major source of income during retirement. However, the survey states that Chinese worry about the cost of caring for their aging parents most. According to the survey, most of the participants from developed countries expressed their concerns that their quality of life during retirement life might be lower than that of their par...

China may possibly raise interest rates again during the coming Dragon Boat Festival holiday because consumer prices are expected to rise to a new high in May, economists said. The three-day Dragon Boat Festival holiday, which ends next Monday, may be the time when the People's Bank of China, the central bank, is likely to announce another interest rate increase, UBS Securities Co said in a note. "Although China's economic growth has shown signs of moderation, inflationary pressure remains high and it pushes China to continue to tighten its monetary policies," the brokerage said. It estimated the Consumer Price Index, the main gauge of inflation, may surge 5.5 percent in May and then climb to 6 percent in June. The recent droughts in central China may be the reason for food prices to rise and so push up the CPI. China has lifted interest rates twice so far this year, or four times since October. The one-year benchmark savings rate is now 3.25 percent. Actually the rea...

Agricultural Bank of China Ltd (ABC), the country's third-biggest lender by assets, will sell 40 billion yuan ($6.17 billion) of subordinated bonds from June 2 to 7, according to a statement released on Monday on the website of China Central Depository & Clearing Co, Ltd. To boost its capital adequacy, ABC will sell 8 billion yuan of 10-year bonds and 32 billion yuan of 15-year bonds. It also has an option to sell an additional 10 billion yuan of bonds, according to the statement. Dow Jones Newswires reported on May 23 that the lender's capital adequacy ratio (CAR) will rise to 12.5 percent if it sells the bonds at the maximal 50 billion yuan, citing a term sheet. ABC reported a CAR of 11.4 percent at the end of the first quarter, 0.2 percentage points lower than the level at the end of December and 0.1 percentage points lower than the China Banking Regulatory Commission's (CBRC) requirement for major banks. Zhan Dongsheng, an ABC spokesman, previously told China Daily ...

HEWLETT-PACKARD has recalled 162,600 battery packs used in its laptops because they can overheat, posing a risk of fire or burns. HP said customers will be eligible to receive a replacement for each verified, recalled battery pack at no cost. The company said on its website that it and the battery manufacturers believed certain battery packs shipped in HP notebook PC products manufactured between July 2007 and May 2008 could pose a potential safety hazard. Customers in China are advised to contact HP through hotline 800-810-3888 or visit www.hp.com/support/batteryreplacement to determine whether their battery is included in the recall. The recall was put in place after the discovery that the lithium-ion batteries can overheat and rupture. Since 2010, there had been reports of seven injuries, one smoke inhalation injury and 36 reports of property damage involving HP products, the US Consumer Product Safety Commission said. The recall is HP's third large-scale battery recall since 20...

Samsung Electronics, the world's largest flat-panel maker, said Monday it held a groundbreaking ceremony for a new plant in China in a bid to expand its presence in the liquid crystal display (LCD) market in the world's most populous nation. According to an emailed statement sent by Samsung to Xinhua, it broke grounds Monday for a new 7.5-generation assembly line in Suzhou Industrial Park, which will be constructed by Samsung Suzhou LCD (SSL). The SSL is a joint venture set up last month by Samsung Electronics, Suzhou Industrial Park and TCL Corp., one of China's leading TV makers. Samsung holds a 60 percent stake in SSL capitalized at 3 billion U.S. dollars, with the Suzhou Industrial Park and TCL Corp. having interests of 30 percent and 10 percent respectively. Samsung said it expects the new plant to begin mass production in the first half of 2013, adding the plant will be capable of producing 100,000 units of glass substrate per month. The tech giant aim...

The urgent need to rebalance the Sino-US economic relationship, as Commerce Secretary Gary Locke told a number of US senators on Thursday, is more than obvious. Yet, his pronounced ardor to press for more access to the Chinese market and faster revaluation of the yuan as the elixir for all the US' economic ills is misdirected. Given the current US political climate, sounding tough on China may help him become the first Chinese-American to serve as the US ambassador to China, but when it comes to improving the commercial relationship between the world's two largest economies, finger pointing simply does not work. The semiannual report on international economic and exchange rate policies that the US Treasury Department released on Friday confirmed that China is not manipulating its currency. Such a matter-of-fact conclusion is badly needed. But this alone will not wake up those in Washington who have mistaken the exchange rate of the Chinese currency as the key to...

Weekly review May 27 Kim calls for close ties through generations May 23 China intends to enhance friendship with Japan May 23 Expert: Ecological problems not all due to Three Gorges Dam May 24 Top military official's visit promotes China-US military ties May 28 The week in pictures May 25 'China fever' sweeps US tourism industry May 26 US should not monopolize cyber affairs May 26 Salty tide hits Shanghai as drought lingers May 25 A new chapter for China-South Africa cooperation May 27 Military trusted most of all Chinese institutions ...

Employees gather grain at a store owned by the "Pobeda" (Victory) collective farm, some 70 km (43 miles) south of Rostov-on-Don in Russia's Rostov region in this September 6, 2010 file photo. (Xinhua/Reuters Photo) Russian Prime Minister Vladimir Putin announced on Saturday Russia will lift from July 1 its grain export ban which was imposed last year in the wake of a severe drought, according to a government release. "From July 1, we will lift the ban on grain exports," said Putin at a meeting with his first deputy, Viktor Zubkov. Putin's decision was made after Zubkov's work report. Zubkov told Putin that spring planting this year was 10 percent higher than the previous year and the winter wheat harvest was "quite good." He added that the lifting of Russia's export restrictions could only benefit farmers. "Considering that we really do have grain now and the state of winter grain crops is quite ...

China Railway Group Limited (China Railway) announced Saturday that it has signed a side agreement with Myanmar to jointly build a rail transport construction project in Myanmar. The side agreement was a supplement to a memorandum of understanding signed in April between the Myanmar Union Ministry of Rail Transportation and the China Railways Engineering Corporation, the parent company of China Railway. Under the MOU, China agreed to cooperate with Myanmar in building a railway extending between Myanmar's border town of Muse and the western Rakhine state's Kyaukphyu, a port city. China Railway said it would be in charge of building the rail line, which starts from the Chinese city of Ruili in southwestern Yunnan Province, extending to Muse and ending at Kyaukphyu. The entire rail line runs 810 kilometers. The company said the project, expected to be completed within three years according to the MOU, would help deepen China-Myanmar economic ties and boost the economic growth of ...

The Central Asia Gas Pipeline has delivered 10 billion cubic meters of natural gas to China as of Saturday since becoming operation in December 2009, according to local authorities. The pipeline, traversing 1,833 km, brings natural gas from Turkmenistan through Uzbekistan and Kazakhstan to Horgos of Xinjiang Uygur Autonomous Region in northwest China, said Wang Hongxin with Horgos Customs. The pipeline came into use on Dec. 14, 2009 with a daily transport capacity of 40 million cubic meters, Wang said. The gas is supplied to 14 provinces, autonomous regions, municipalities and special administrative regions, including Shanghai and Hong Kong, Wang said. The Horgos Entry-Exit Inspection and Quarantine Bureau checks the content of the gas, such as its hydrogen sulfide and carbon dioxide contents, around the clock to ensure its quality.

U.S. consumer spending and personal income both increased in April, but the savings rate dropped, a sign of continuing economic recovery, the Commerce Department reported Friday. Consumer spending gained 41.5 billion U.S. dollars, or 0.4 percent in April, after a revised 0.5 percent increase in March. Personal income increased 46.1 billion dollars, or 0.4 percent last month, the same level as the previous month. Disposable personal income increased 35.1 billion dollars, or 0.3 percent, the department said. Last month, the U.S. savings rate, personal saving as a percentage of disposable personal income, remained unchanged at 4.9 percent. The rate remains well above the 2.1 percent average savings rate for all of 2007. In the first quarter of this year, the savings rate was recorded at 5.1 percent, the lowest level in more than two years. In the second quarter of 2010, the U.S. savings rate reached 6.2 percent, the highest quarterly level in recent years. Consumer spendin...

The number of operating oil and natural gas rigs in the United States rose by 17 to 1,847 this week, according to a weekly report released in Houston yesterday. A total of 958 rigs were exploring for oil and 881 for natural gas, with another eight rigs listed as miscellaneous, according to the report released by Houston-based oil service company Baker Hughes Inc. The rig count stood at 1,535 a year ago. Of the major US oil- and gas-producing states, Texas gained 16 rigs, New Mexico and Arkansas added two each and Oklahoma added one. Louisiana lost the most rigs, decreasing by four, while California, Wyoming and North Dakota each lost one rig. The Baker Hughes rig counts, first issued in 1944, act as an important business barometer for drilling firms and their suppliers to gauge the overall business environment of the oil and gas industry. The US rig count peaked at 4,530 in 1981 as a result of the oil boom. It plummeted to a record low of 488 in 1999.

Watch Video Play Video China's booming hospitality sector is expanding at a rapid pace. It received 60 million international arrivals in 2010, a 10% increase over the previous year. To cater to the increased number of tourists, China's HNA Group, the parent of Hainan Airlines, is teaming up with the Spanish hotel chain NH to build top-notch hotels across China. The Spanish tourism industry is receiving a boost this summer as the unrest in the Arab world means visitors are choosing Spain rather than other Mediterranean destinations, which might be problematic. However China replaced Spain last year as the world's third most visited country behind France and the United States. To cater to this booming market Chinas HNA Group is buying 20 per cent of Spains NH Hotels for 610 million dollars. A strategic move for the parent company of Hainan Airlines because it gets them management and marketing skills of a well established group. Francisco Zinser, Chief Operating Officer...

Chinese shares dropped for its seventh straight day of losses on Friday as growth concerns still haunted market sentiment. The benchmark Shanghai Composite Index fell 0.97 percent, or 26.58 points, to 2,709.95 points, its lowest level since January 26 of this year. The Shenzhen Component Index inched down 0.33 percent, or 37.99 points, to close at 11,492.71 points. Source: Xinhua Weekly review May 20 World Economic Forum China office marks fifth anniversary May 18 China, Pakistan joined in bonds of brotherhood May 20 'Central axis' of Beijing applies for world cultural heritage May 20 In pictures: Int'l 'Financial Security' ...

Gold futures on the COMEX Division of the New York Mercantile Exchange edged lower, ending a 4- session winning streak on Thursday, as investors chose to lock in the gains they've amassed since the rally began last Friday. But a weaker dollar as well as downbeat U.S. employment and growth data helped gold pare some of its early losses. The most active gold contract for June delivery slipped 3.9 dollars, or 0.3 percent, to 1,522.8 dollars per ounce. The U.S. Labor Department announced Thursday the number of workers filing new claims for jobless benefits jumped by 10,000 last week, to 424,000, while economists were forecasting a decline of 4,000. Meanwhile, U.S. gross domestic product, a measure of all the goods and services produced in the economy, rose at an inflation- adjusted rate of 1.8 percent during the first quarter of 2011, according to the U.S. Commerce Department, which is less than economists' estimates for a 2.2 percent growth rate. ...

The Chinese currency Renminbi, or the yuan,appreciated 23 basis points to an all-time high at 6.4898 per U.S. dollar on Friday, according to the China Foreign Exchange Trading system. The yuan's fresh central parity rate scrapped the previous record of 6.4921 per U.S. dollar set on May 26. On China's foreign exchange spot market, the yuan can rise or fall 0.5 percent from the central parity rate each trading day. The central parity rate of the RMB against the U.S. dollar is based on a weighted average of prices before the opening of the market each business day. Source: Xinhua Weekly review May 20 World Economic Forum China office marks fifth anniversary May 18 China, Pakistan joined in bond...

While China's wind turbine makers are in a cut-throat price war in the domestic market and one-third of wind turbines stand idle, there's a silver lining: the demand for wind power equipment in developing economies, analysts said on Thursday. "Chinese wind turbine manufacturers have limited means to make a profit as the price has hit the bottom. But when you look beyond China, you will find there is great potential in some developing countries," said Patrick Dai, China electrical equipment analyst with UBS Securities. "Currently, China has more than 5 million kilowatts of wind turbine overcapacity, making the price war inevitable," Dai said. In the first five months of this year, wind turbine makers have found it hard to make any profit with prices at about $1 million a megawatt, according to Dai. However, the price in the global market is between $2 million and $2.5 million a megawatt. Capital is still flowing constantly into the local wind turbine market t...

CHINA'S proposed income tax plans have prompted a huge response from the public with more than 230,000 comments, a record, posted online. And they all seem to say the same thing - cut taxes and narrow the wealth gap. By 5pm yesterday, 231,533 comments had been posted on the website of the National People's Congress, nearly one month after the top lawmakers asked for public reaction to a draft amendment which would increase the minimum threshold for personal income tax from 2,000 yuan (US$306) a month to 3,000 yuan. The tax plan, which would cost the government 120 billion yuan in revenue, includes raising the minimum tax threshold and altering tax brackets to give relief to lower income workers, a pledge made by the government in its new Five-Year Plan. Under the proposal, 12 percent of salaried workers will pay income tax, compared with 28 percent at present. However, many people, especially those living in big cities such as Shanghai and Beijing, questioned whether the 3,000-...

China plans to spend 6.2 trillion yuan (954 billion U.S. dollars) to upgrade its transportation infrastructure during its 12th Five-Year Plan period (2011-2015), an official said Thursday. The figure was compared to a previous investment of 4.7 trillion yuan in the sector during the 2006-2010 period, Sun Guoqing, director of the comprehensive planning department of the Ministry of Transport, said during a press conference. The money will pay for the construction of road and waterway transportation facilities, with road construction accounting for a large part of the budget, Sun said. According to a development plan released by the ministry at the conference, China will construct 108,000 kilometers of highway during the 12th Five-Year Plan period. By the end of 2015, the country's highway network will cover more than 90 percent of cities with populations of 200,000 people or more, according to Sun. Source: Xinhua ...

China has started reviewing the anti-dumping measures it imposed in 2006 on catechol imported from Japan and the United States, the Ministry of Commerce (MOC) said Wednesday. The MOC will examine the possibility of continuing the anti-dumping measures and evaluate any possible damage that might result if the measures are discontinued, according to a statement on the MOC's website. The Lianyungang Sanjili Chemical Industry Co., Ltd. filed an application for the re-examination of the measures on March 21 on behalf of China's catechol producers, the statement said, adding that the review should be completed before May 22, 2012. China slapped a five-year anti-dumping duty of 4 percent to 46.81 percent on catechol imports from the United States and Japan on May 22, 2006. Catechol is a chemical material that can be used as an antiseptic or photographic developer. Source: Xinhua ...

China's financial leasing industry has reported rapid growth in recent years, as the total assets of the country's 17 financial leasing companies jumped to 364 billion yuan (56 billion U.S. dollars) at the end of March this year, an increase of 25 fold from 2007, a senior banking official said on Wednesday. Net profits of the companies increased 39 fold from 2007 to 1.32 billion yuan at the end of March, while their non-performing asset ratio stood at 0.49 percent, Cai Esheng, vice chairman of the Chinese Banking Regulatory Commission, said at a forum held in north China's port city of Tianjin. The companies had invested 38.14 billion yuan, 33.71 billion yuan and 192.48 billion yuan in the aircraft, shipping and professional equipment sectors at the end of March, Cai said. Despite fast development in the country's financial leasing industry, its products were still simple and identical to those of banks, Cai said. As one of the most important financing t...

Sony has suffered another online security breach, this time for 2,000 customers of its Sony Ericsson joint venture in Canada, the latest in a series of hacker attacks against the electronics and entertainment company. Sony Corp spokesman Atsuo Omagari said yesterday that names, e-mail and encrypted passwords may have been stolen from the Sony Ericsson Canada website, but no credit card information was taken. There have been no reports of damage from the security breach, discovered on Tuesday, and the server has been shut down, he said. An investigation was under way, and other details were not immediately available. Sony Ericsson is a mobile phone maker that is a joint venture between L.M. Ericsson of Sweden and Sony. More than 100 million online accounts are affected in a suspected hacking of Sony's PlayStation Network gaming service and other online services that began last month, tarnishing the brand behind the Walkman portable music player and Vaio personal computer. On Tuesday...

OIL climbed above US$101 per barrel yesterday as investors cheered a sharp rise in refining activity in the U.S. Benchmark crude for July delivery added US$1.73 to settle at US$101.32 per barrel on the New York Mercantile Exchange. In London, Brent crude rose US$2.40 to settle at US$114.93 per barrel on the ICE Futures exchange. Oil rose after the government reported that refinery utilization grew to 86.3 percent last week, up from 83.2 percent the week before. The increased activity came mainly in the U.S. Midwest, where benchmark crude is delivered. "A lot of people are looking at that and thinking it'll absorb some excess crude supply down the road," said Michael Lynch, president of Strategic Energy & Economic Research. Analysts also said that energy markets are still responding to bullish outlooks earlier this week from investment banks that see oil prices will rise in coming months. Goldman Sachs expects benchmark West Texas Intermediate crude to hit US$135 per b...

SHANGHAI supermarkets have confirmed that Unilever China plans to raise the price of some personal care products by as much as 10 percent. This comes less than three months since the consumer product giant suspended hikes under pressure from pricing authorities. Prices of Lux and Hazeline shampoo, body wash and skin moisturizers are set to increase between 4 and 10 percent, supermarkets said. CP Lotus Corp and Metro said they have already implemented the price rise, while Carrefour, Wal-Mart and China's NGS said they are waiting to see market reaction. Unilever China declined to comment. Other Unilever products and those by other major personal care producers, such as Procter & Gamble, Zhejiang-based Nice, and Guangdong-based Liby, are not affected by the increase, according to supermarkets. Supermarkets and shopping malls in Guangzhou, Guangdong Province, have also been advised of the price hike, the Guangzhou Daily reported yesterday. Rising costs in crude oil and domestic lo...

China still faces challenges in grain production, although it is likely to see a rise in summer grain output this year, a senior official said Wednesday. Prices of producer goods have continued rising, which has squeezed farmers' profit margins and dampened their enthusiasm for production, said Ma Xiaohe, deputy head of the Academy of Macroeconomic Research of the National Development and Reform Commission, China's top economic planning body, at a forum. Labor costs have also increased recently, indicating the possibility that farmers may abandon grain production to look for other jobs to earn more money, he said. The loss of arable land due to urbanization and the country's antiquated agricultural infrastructure also threaten grain security. Ma said the government should increase financial support for agricultural production and take more measures, such as developing a commodity futures market, to ensure grain security. Source: Xinhua ...

The Swiss food and beverage giant Nestle SA expects to announce expansion plans in China in the coming months, after boosting its seasoning production capacity in Dongguan, Guangdong province. On Tuesday, the company unveiled its plan to invest 320 million yuan ($49.2 million) to lift annual capacity at its instant food and seasoning factory in Dongguan from 15,000 tons to 40,000 by 2015. "We are increasing our capacity rapidly in every category of our products," said Roland Decorvet, chairman and CEO of Nestle China. adding the company may announce more plans in the next few months. The capacity of the factory could be ramped up to 100,000 tons in the next few years, he said. Last month, Nestle China said it is acquiring a 60 percent equity stake in Yinlu Foods Group, a Chinese instant food company. "We are still waiting for approval from the Ministry of Commerce," Decorvet said, when asked to comment on the proposed acquisition. Having set up 23 f...

China's cell phone user grew by 41.39 million in the first four months of 2011 to 900.39 million in total, covering nearly two-thirds of the nation's population, according to the Ministry of Industry and Information Technology (MIIT). The number of telephone subscribers exceeded 1.19 billion by the end of April, with the number of fixed-line subscribers dropping by 2.93 million to 291.45 million, according to statistics released Tuesday by the MIIT on its website. By the end of April, third generation (3G) mobile telecommunication users in China reached 67.57 million, 20.52 million more than that of the end of 2010. The number of broadband Internet users increased by 9.58 million in the Jan.-April period to 135.92 million, while the number of dial-up connection users dropped by 130,000 to 5.77 million. China's telecommunication industry reported a 9.4 percent growth year- on-year in main business revenue for the first four months to 308.36 billion yuan (47.44 billion US. do...

The net profit of China's central state-owned enterprises (SOEs) is estimated to have reached 82.11 billion yuan in April, surpassing the 80-billion-yuan mark for the first time in 2011. Meanwhile, the central SOEs, which refer to those state-owned enterprises administered by China's central government, realized a combined net profit of 290.69 billion yuan during the January-April period, increasing by 18.2 percent year-on-year in the first four months, according to statistics issued by State-owned Assets Supervision and Administration Commission on May 23. The statistics also show that the revenues of the central SOEs rose 24.1 percent year-on-year to 6.08 trillion yuan from January to April. Out of that total, the net profit belonging to owners of parent companies is 191.77 billion yuan, increasing by 20.4 percent year-on-year. The central SOEs had 553.99 billion yuan payable in taxes and fees for the first four months, up 27.3 percent from the same period of ...

China posted surpluses under both the current account and capital and financial account in the first quarter, according to data released by the State Administration of Foreign Exchange (SAFE) on Tuesday. The surplus under the current account, which measures China's foreign trade, reached 29.8 billion U.S. dollars in the first quarter, down 18 percent from a year earlier, SAFE said on its website. For the capital and financial account, China reported a surplus of 111.4 billion U.S. dollars, including 42.6 billion U.S. dollars of net inflow of foreign direct investment (FDI), according to the SAFE. The surpluses under the current and capital and financial accounts raised China's international reserve assets by 141.2 billion U.S. dollars in the first quarter, of which 138 billion U.S. dollars was kept as foreign exchange reserves. By the end of March, China's foreign exchange reserves hit 3.04 trillion U.S. dollars, up 24.4 percent year-on-year, according to fi...

The world's largest commercial bank ICBC launched its bid to promote its dual-currency credit card outside China on Monday -- with international investor Jim Rogers among the first holders. The dual-currency credit card came with two accounts, with one of them in Renminbi and the other in the local currency -- the Singapore dollar in this case. Holders of the card can pay for their bills in China in yuan and settle the transactions in yuan, and using money from the Singapore dollar account to pay for the bills outside China. Li Xiaopeng, executive director and vice president of ICBC, said the bank designed the product to rise demand for consumers using the Renminbi as trade, tourism and overseas education activities grow. "It will save customers' costs of currency conversions, provide higher interest rates and potential returns from the appreciation of the Renminbi," he said. The launch of the credit card on Monday is also party of ICBC's strategy ...

OIL dropped more than 2 percent yesterday as the dollar strengthened and an energy research group said it expected the growth in Chinese demand for oil to slow later this year. Benchmark crude for July delivery lost US$2.40, or 2.4 percent, to settle at US$97.70 per barrel on the New York Mercantile Exchange. In London, Brent crude gave up US$2.29 or 2 percent, to settle at US$110.10 per barrel on the ICE Futures exchange. Crude dropped as the dollar rose against other currencies. Oil is priced in dollars, and it tends to fall as the dollar rises and makes crude more expensive for investors holding foreign money. The U.S. Dollar Index, which measures the dollar against other major currencies, rose 0.7 percent amid concerns about Europe's debt crisis. Last week credit ratings agency Fitch downgraded Greece again and Standard & Poor's lowered Italy's ratings outlook. The euro tanked on a combination of credit rating downgrades, a big election defeat for Spain's govern...

Our old friends at the Chopsticks Club are putting on their first China recruitment fair on 29 June, in London. Judging by all the emails we get from people looking for China-related jobs (and from headhunters looking for candidates) they should get a good turnout. As they put it: This Event will have huge benefits for companies and job-seekers alike and includes educational workshops for senior HR and business development executives as well as job seekers to increase their chances of employment. Household brand names are already committed to the event including Shell, Unilever, and HSBC . See here for more details .

CHINA Eastern Airlines will launch the first regular direct services between Shanghai and Hawaii on August 9. The Shanghai-based airline yesterday said it will fly to Hawaii every Tuesday and Friday, using an Airbus A340 aircraft, which can accommodate about 300 passengers.

CHINA'S manufacturing activities may slow down for a second month in May to the brink of contraction, according to the HSBC Purchasing Managers Index released today. The HSBC Flash China Manufacturing PMI stood at 51.1 in May, a 10-month low and down from April's 51.8. The flash data are published about one week before the final PMI data are released. The estimate is based on more than 85 percent of total PMI survey responses and aims to provide an accurate forecast of the final PMI. A reading above 50 points to expansion and a reading below 50 means contraction. "Manufacturers continued to reduce inventories amid sluggish business flows, causing production growth to hit a 10-month low," said Qu Hongbin, chief economist for China at HSBC. "But we think there is no need to worry about a hard landing because the current level of PMI is still consistent with the 13 percent industrial production growth and 9 percent GDP growth." Qu said the policy focus should t...

China's National Economic Accounting and Economic Growth Research Center under Peking University released the "China Economic Growth Report 2011" on May 21. The report said that judging from the current macroeconomic imbalance in China, China is faced with both inflationary pressure and the risk of sluggish growth. China needs to prevent stagflation by controlling the gross unbalance in the current stage. The report shows that in regard to the total demand, China implemented a package of measures to expand domestic demand starting from the second half of 2008. According to the policy delay on inflation, the liquidity of investments will generally manifest itself as inflation in six to 24 months. Therefore, the inflationary pressure caused by policy measures aimed at expanding domestic demand that appeared from the second half of 2008 to the first half of 2010 will be gradually released no later than the end of 2011 to the first half of 2012. The key is whe...

Chinese shares tumbled 2.93 percent to a 16-week low Monday with the major gauge Shanghai Composite Index down to below 2,800 points, as investors worried about future economic growth under rising inflation pressure. Source: Xinhua Weekly review May 20 World Economic Forum China office marks fifth anniversary May 18 China, Pakistan joined in bonds of brotherhood May 20 'Central axis' of Beijing applies for world cultural heritage May 20 In pictures: Int'l 'Financial Security' symposium opens in Beijing May 21 The week in pictures May 16 Beijing aims for massive influx ...

China's state-owned enterprises (SOEs) supervisor on Saturday said it would work to make the SOEs management more transparent after China's top auditor publicized irregularities among a number of famed SOEs. The release of the audit results will help the public to monitor the SOEs and help the SOEs to redress loopholes, said the State-owned Assets Supervision and Administration Commission of the State Council in a statement on its website. The supervisor said the SOEs have made progresses in management, risk controls and social responsibilities in the past years, but they still lag far behind top-level international enterprises and should take advantage of the disclosures to enact further changes, the statement said. Heads of the enterprises will be asked to take the lead in saving, fighting against squandering, controlling "irrational spending" and reducing management costs so that limited funds and resources can be invested in enterprise development,...

China's largest hydropower producer said on Sunday that it will take further steps to rectify financial problems that were uncovered during a recent audit. China Three Gorges Corp. (CTGPC), which operates and manages the world's largest hydropower project, the Three Gorges Dam, confirmed the audit's findings and said it is taking measures to improve its management. The National Audit Office (NAO), the country's primary auditor, released audit findings on Friday for 17 central state-owned enterprises. The findings indicated that some of the companies, including the CTGPC, are having financial problems. "The audit findings released by the NAO are a true reflection of our company's problems and will be helpful in regulating corporate management and guarding against operational risks," said Sha Xianhua, vice manager of the CTGPC. According to Sha, the NAO audit report pointed out 31 financial issues related to accounting, financial management, investment, bidd...

A senior Chinese legislator has called for strengthening food safety supervision and immediately focusing on combating the illegal use of food additives following a string of food scandals. Zhou Tienong, vice chairman of the Standing Committee of the National People's Congress (NPC), the country's top legislature, made the remarks during his inspection tour in north China's Inner Mongolia Autonomous Region from Monday to Friday. Zhou and his work group made the tour to inspect the law enforcement situation of China's Food Safety Law, which took effect in 2009. While stressing the importance of the law, Zhou said both the government's monitoring role and the food production companies' self-discipline and awareness should be strengthened. Moreover, public supervision should make up for a lack of professional monitoring efforts, he noted. Zhou also called for improving efforts concerning food safety standards and assessments. A recent series of food...