China :: Business & Economy

China's PMI, a preliminary readout of the country's manufacturing activity, dropped to 49 percent in November, indicating contraction for the first time since February 2009. The November Purchasing Managers' Index was down 1.4 percentage points from 50.4 percent in October, the China Federation of Logistics and Purchasing said Thursday.

China's inflation is predicted to fall for a fourth consecutive month in November with the consumer price index (CPI) likely to drop to 4.3 percent, according to a Bank of Communications' report. Food prices have dropped as warm weather has allowed for an abundant winter supply of vegetables, eggs and pork, according to the report. According to data from the Ministry of Commerce, pork prices dropped 1 percent than last week and were down 10.7 percent cumulatively since mid-September. Egg prices have fallen in consecutive weeks, down 5 percent in the past two months, as supplies increased, the ministry said. Food prices have a one-third weighting in the calculation of China's CPI, which eased to 5.5 percent last month, down from 6.1 percent in September. In addition to lower food prices, declines in global commodity prices and weakening tail-raising factors will also contribute to the CPI's decline in November, the report said.

Watch Video Play Video Eurozone finance ministers have agreed to ramp up the fire-power of the European Financial Stability Facility, and raised the possibility of asking the IMF for help. They also finally approved the eight billion euro aid tranche to Greece, to help the country stave off the immediate threat of default before Christmas. But, Italy is getting more vulnerable, with its borrowing cost hitting a euro-era high of nearly eight percent. With the Europe Central Bank and Germany each standing their ground in opposing the ECB being a lender of last resort, eurozone countries need another way out. Theyve now turned to the IMF, and the regions finance ministers have agreed to explore ways of boosting the international lenders resources, through bilateral loans. All this, so the IMF can match the leveraged capabilities of the eurozones bailout fund. (L to R) European Monetary Affairs Commissioner Olli Rehn, Spain's Economy Minister Elena Salgado, Italy's Prime Mini...

The global green economy has become a reality but world governments must do more to ensure its success, the head of the United Nations agency responsible for poverty reduction and environmental sustainability declared on Monday. "One thing is clear: green industry is real. It is already here," UN Industrial Development Organization (UNIDO) Director-General Kandeh K. Yumkella told the opening session of the agency's biennial conference in Vienna. "UNIDO has been at the forefront of the industry and environment nexus for many years," he added, spotlighting the role played by UNIDO's Green Industry Initiative in hastening the environmentally-friendly growth of industry and fostering sustainable development in the world's poorer nations. Citing UNIDO's "major role" in driving the UN agenda forward on green energy issues, Dr. Yumkella also pointed to progress made by developing countries in greening their industries as an example of his agency...

FITCH said it will keep its rating for long-term United States debt at the top AAA level, despite a congressional panel's failure to agree on long-term deficit cuts. But it is lowering its outlook to negative. It said on Monday that it has less confidence in the US government's ability to take the necessary steps to rein in the deficit. A special congressional panel failed last week to reach agreement on US$1.2 trillion in deficit cuts over the next decade. The impasse triggered automatic cuts of the same amount, which are due to start at beginning of 2013. Moody's Investors Services and Standard & Poor's also left their ratings unchanged last week. But Moody's may lower its rating if Congress backed off the automatic cuts.

Watch Video Play Video The United States and European Union have agreed to develop a plan to capitalize on already strong economic ties to create more jobs and fuel economic growth on both sides of the Atlantic. The agreement was reached during talks between US President Obama and the top EU leaders. In a joint statement, they said that they must intensify their efforts to realize the untapped potential of trans-Atlantic economic co-operation to generate new opportunities for jobs and growth, particularly in emerging sectors. US President Barack Obama shakes hands with European Council President Herman Van Rompuy after delivering statements to the press after a summit in the Roosevelt Room of the White House in Washington, DC. The announcement follows a recommendation from the TransAtlantic Business Dialogue, a private sector advisory group, that the United States and the EU explore the idea of negotiating a TransAtlantic Economic and Trade Pact. It also follows summit meetings ...

China's sovereign wealth fund wants to invest in improving infrastructure in Europe and the United States to spur global growth, the fund's chairman wrote in the Financial Times yesterday. "Now, infrastructure in Europe and the US badly needs more investment," China Investment Corporation's Lou Jiwei wrote. "Traditionally, Chinese involvement in overseas infrastructure projects has been as a contractor only. Now, Chinese investors also see a need to invest in, develop and operate projects." Lou deemed the UK as one of the most open economies in the world, and expressed keenness in teaming up with fund managers or participating in public-private partnerships in the UK infrastructure sector as an equity investor. In the PPP arrangement, the government could invest with local or overseas institutional investors and share risks and returns. "CIC believes that such an investment, guided by commercial principles, offers the chance of a 'win-win' s...

Despite Christmas still being a month away, employees at Yihang Christmas Decoration Arts and Crafts company have already stopped working and begun decorating their 26,000-square-meter factory on the outskirts of Yiwu, in Zhejiang province, with leftover seasonal ornaments. A businessman examining Christmas decorations at his store in Yiwu of East China's Zhejiang province. The man, identified only as Mr Tang, said overseas orders for Christmas products he received this year increased at least 50 percent from last year. [Yong Kai/China Daily] It's not because they have nothing else to do due to the stagnant economies in Western countries to which the company traditionally exports containers of Christmas decorations. On the contrary, the 700 workers from one of the biggest factories of its kind in the city, if not in the country, are seeing an unprecedented sales boom and are celebrating the moment. "This is the best year," said Lou Aiju, the wife of the boss, or ...

BRITAIN will underwrite 20 billion pounds (US$31 billion) of loans to smaller companies to boost the economy, while sticking to a strict austerity program, Finance Minister George Osborne said yesterday. Osborne is under pressure to find ways to revive a stagnant economy and avoid a return to recession without affecting a deficit-cutting spending squeeze. The "credit easing" program is expected to form the centerpiece of Osborne's autumn budget statement to parliament tomorrow, which will also detail plans to funnel billions of pounds of private investment into infrastructure projects. The government will back loans to be made by banks to small- and medium-sized companies to cure a shortage of credit that has hampered Britain's economic recovery. "We are making available 20 billion pounds for the National Loan Guarantee Scheme, however it sits within an envelope that could be as large as 40 billion pounds," Osborne told BBC television. He said the government...

A Chinese businessman criticized Icelandic authorities' rejection of his land purchase plan in the country, saying the decision highlighted the prejudice faced by Chinese investors abroad, a Beijing-based newspaper reported Sunday. Huang Nubo, chairman of Zhongkun Group, foreground, shows a map of northern europe as he introduces his land-purchasing plan in Iceland to the press at a meeting room of his company's headquarters building in Beijing, Sept. 2, 2011. [Photo: CFP] "The denial reflects the unjust and parochial investment environment facing private Chinese enterprises abroad," the English-language China Daily quoted Huang Nubo in an interview after Iceland refused Friday Huang's request to buy a 300-square km section of land to develop an eco-resort. The sale had been initiated by the Icelandic landowners themselves and the rejection was a loss for both Icelandic and Chinese investors, Huang was quoted as saying. He blamed the western countries for imposing...

Watch Video Play Video Finnish mobile phone giant Nokia has applied for a delisting from the Frankfurt Stock Exchange . Its widely believed that the move was spurred by falling shares values. Facing a volatile and changing cellphone market, Nokia has seen its position falter in recent years. Founded a century ago, Nokia has been a fixture of the Helsinki Stock Exchange since 1915. It credited with spurring a global revolution in the mobile communications industry. More than 1.3 billion customers use Nokias cellphones at its peak time, with a market share matching Sumsang, LG, and Motorola combined. However, with the development and spread of 3G services, the cellphone market has changed from more traditional designs to modern smartphones. Nokia has been facing hard times, as non-smartphones are its traditional stronghold. Many of the companys new products flopped, and it still lacks a defining smartphone product to rival the likes of Apples Iphone. Its also seen its market share ...

ChinalcoRio Tinto Exploration Co, a joint venture between Aluminum Corp of China and Australia's Rio Tinto, has obtained business registration for mineral exploration in China, according to Rio Tinto's Beijing office. The JV will initially focus on exploring copper and plans to expand into coal and potash, Rio Tinto said in a statement yesterday. The statement did not provide a timetable for the JV to start exploration and did not mention any specific project. Chinalco, as China's top aluminum producer is known, has a controlling 51 percent stake in the JV and Rio Tinto, one of the world's three largest iron ore suppliers, holds the rest. The two sides signed an agreement in June to form the JV. It will help enhance China's domestic resource supply capabilities, said Wang Dongsheng, the venture's chairman. China is the world's largest copper consumer and about 50 percent of its copper supplies rely on imports. The tie-up was recognized as a major milestone i...

Former Olympus CEO Michael Woodford gestures at a Tokyo news conference about the Japanese firm's accounting scandal yesterday.Woodford said that while he was ready to return as president, he would also be willing to walk away if Olympus and its shareholders do not want him back. Woodford said after yesterday's board meeting that the top priority was for Olympus to meet a December 14 deadline for filing its financial statements for the six months to September. The company would be automatically delisted if it misses the deadline. [Photo: Reuters via Shanghai Daily] The former Olympus Corp. CEO Michael Woodford said a meeting with the firm's board of directors on Friday was constructive but insisted the board step down to account for the disgraced firm's involvement in massive accounting coverups. Woodford met wit his board of directors at Olympus for the first time since he was ousted as the company's president on Oct. 14 for blowing the whistle on the optical and l...

STANDARD & Poor's downgraded Belgium's financial standing yesterday, citing the country's government stalemate and a looming European recession. Spurred on by the ratings agency's cut, six leading parties hurriedly resumed talks to agree on a 2012 budget to contain Belgium's high debt and deficit, two more reasons why the country has come under increasing pressure from financial markets this week. In a sign that financial contagion is spreading across Europe, the agency cut Belgium's credit rating from AA+ to AA, a move coming two days after Germany fared surprisingly poorly at a bond auction. Belgium has been without a permanent government for 530 days, as a series of negotiators has struggled without success to bridge the country's divide between its French and Dutch speakers. "In our opinion, protracted political uncertainty remains a risk to its creditworthiness," the ratings agency said. Caretaker Prime Minister Yves Leterme said "we ...

THE American holiday shopping season began in earnest today as stores opened their doors at midnight - a few hours earlier than they normally do on the most anticipated shopping day of the year. A few retailers even had lines of shoppers when they opened on the Thanksgiving harvest holiday yesterday. Herald Square in New York was bustling at 6 pm with shoppers looking to snag discounts at Old Navy and other stores that were open on the Thanksgiving. By 9:45 pm, more than 300 people were waiting outside a Best Buy in New York before it opened at midnight. An hour later, nearly 2,000 were in line at another Best Buy in St. Petersburg, Florida, ahead of its midnight opening. Retailers hope the earlier openings will make Black Friday shopping more convenient for Americans who are more likely to be worried about high unemployment and the other challenges they face in the weak economy. Black Friday is important to merchants because it kicks off the holiday shopping season, a time when they c...

For the first year ever, more private foundations are operating in China than public ones. At the same time, those private foundations are finding that they lack the trained professionals and managers they need to function well, according to a recent research report. At the Third China Private Foundation Forum on Thursday in Beijing, Beijing Normal University's school of social development and public policy released a report on the development of private foundations. China Foundation Center, a non-governmental philanthropic information provider, said 1,324 private foundations are now operating in China, 131 more than the number of public foundations that are in existence. Figures from the Ministry of Civil Affairs, meanwhile, show the number of private foundations increased from 253 in 2005 to 1,065 in 2010. During the same period, public foundations went from being 721 in number to being 1,078. In 2010, private foundations' revenue increased to more than 10 billion yuan ($1.6 ...

Watch Video Play Video In Vietnam, a mixed picture for consumer prices. Annual inflation in November fell below 20 percent for the first time in five months, but monthly inflation quickened slightly, on the back of higher food prices. The October 15th to November 15th annual rate came in at just a shade under 20 percent, 19.8 percent, the lowest level since June. However, month on month, it quickened by 38 basis points, faster than the monthly increase of 36 basis points between September and October. Food prices show no signs of slowing. They jumped in November by nearly 23 percent year on year. In month on month terms, it was more than double the monthly growth between last month and September. Vietnams central bank forecasts that inflation could hit 19 percent for the year, slightly above government estimates. Related stories Vietnam urges further promotion of border trade exchange with China 2011-11-18 Vietnam business confidence recovers in Q3 2011-10-20 Chinese company in...

Shanghai is to enhance the role of insurers in improving public welfare and boosting the city's shipping industry, the local regulator said yesterday, citing the new five-year plan for the city's insurance sector. The Shanghai Bureau of the China Insurance Regulatory Commission said it will launch tax-deferred pension insurance once it is supported by policy changes at state level. This type of insurance involves tax relief on premium payments. Income tax is paid later when the pension is drawn down. A commission official said: "We plan to launch the insurance on a trial basis within the next five years, but it cannot be done without preferential tax policies to allow deferred payment." Insurers will be encouraged to use the income from premiums to invest in building infrastructure and public housing in Shanghai, the regulator said. Insurers will also place an emphasis on developing shipping insurance and will make moves to join international insurance organizations t...

Oil prices rose to near US$97 a barrel yesterday amid lower US crude inventories and light trading volume because of the Thanksgiving holiday. By early afternoon in Europe, benchmark crude for January delivery was up 79 cents at US$96.96 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell US$1.84 to settle at US$96.17 in New York on Wednesday. In London, Brent crude for January delivery rose US$1.03 to US$108.05 a barrel on the ICE Futures exchange. Markets in the US are closed yesterday for Thanksgiving. Crude has fallen from above US$103 last week amid investor concern that Europe's debt crisis will undermine global economic growth and oil demand. Wednesday's unsuccessful bond auction in Germany and signs that France may see its triple A credit rating downgraded kept gains in check. "Economic conditions continue to remain fairly chaotic," said analysts at Sucden Financial in London. "Serious debt issues continue to dominate the...

FRENCH President Nicolas Sarkozy appears to have tempered his calls for the European Central Bank to play a bigger role in solving Europe's debt crisis as he agreed to a German effort to change European Union treaties to improve the governance of the troubled eurozone. Speaking after meeting German Chancellor Angela Merkel and Italian Premier Mario Monti yesterday, Sarkozy said "propositions for the modification of treaties" will be presented within days. He would not elaborate on what these changes may involve but said they would be ready for the next EU leaders summit on December 9. This was the first meeting of the leaders of the eurozone's three largest economies since Monti took over last week following mounting market concerns over Italy's huge debts. The meeting in Strasbourg, France, came amid signs that even Germany and France are not immune from the crisis, in which three relatively small countries have been bailed out. All three leaders said they would ...

The growth rate of China's industrial value-added output in 2012 is likely to slide by 1 to 2 percentage points due to growing global uncertainties, a government official said Thursday. "The industrial production growth rate will moderate, but the sector will still run at a steady and relatively fast pace," Huang Libin, an inspection and coordination official with the Ministry of Industry and Information Technology, said at a press conference. 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. Huang predicted that China's full-year industrial value-added output will rise by 14 percent year-on-year this year. In the first 10 months of the year, the growth rate stood at 14.1 percent. China's industrial value-added output expanded 15.7 percent in 2010. Huang said cooling external demands due to economic turmoil in Europe and th...

SHANGHAI'S benchmark index rose for the first time in seven trading days, lifted by a bout of bargain hunting in previously oversold blue chips amid weak turnover that indicated the market remained vulnerable. Shanghai Composite Index edged up 0.1 percent to 2,397.55. Turnover added slightly to 51.4 billion yuan (US$8.09 billion) from yesterday's 50 billion yuan. The rise among financials and developers helped the benchmark index secure gains following its longest losing streak in six months, as the market speculated China might ease its monetary tightening. Industrial & Commercial Bank climbed 0.94 percent to 4.28 yuan. Poly Real Estate rose 2.92 percent to 9.17 yuan. China Life advanced 3.30 percent to 17.84 yuan. The central bank has lowered the reserve requirements for more than 20 rural cooperative banks by half a percentage point, raising expectations that China may start to cut the reserve requirement ratio for all banks later. The move reduces the percentage of depo...

Chinese stocks closed slightly higher on Thursday, with the benchmark Shanghai Composite Index up 2.49 points, or 0.1 percent, to close at 2,397.55. The Shenzhen Component Index edged up 9.43 points, or 0.1 percent, to finish at 9,966.74.

Electronic trading houses, which conduct transactions in commodities, artifacts and precious metals, have seen their numbers grow in the past five years from a few dozen to more than 300. But the boom could come to an abrupt end as the government pursues a drive against risky practices in the industry. This week, the State Council determined that these legal and illegal trading houses are too risky to be left unregulated. The council called on the China Securities Regulatory Commission (CSRC) to "clear them up". Rules bar the trading houses from making markets and adopting centralized pricing and say that no more than 200 investors may hold stakes in any single traded asset. Investors are also banned from reselling an asset within five days. Although the government said that some of the trading houses' activities are illegal, it didn't specify which transactions are involved. This isn't the first time that the government has found fault with the trading houses. In...

CHINA Shenhua Group, the country's largest coal producer, has launched a project to find combustible ice, a kind of natural gas hydrate, in northwest China's Qinghai Province. Shenhua has signed an agreement with the Qinghai provincial government to begin exploration for combustible ice. The substance is usually found in seabed or tundra areas, each of which has the high pressure and low temperature necessary for its stability. It can be ignited like solid ethanol, which is why it has the name combustible ice.

BAYER MaterialScience is boosting its presence in China as demand for coatings is surging here and the government has pledged to support the use of eco-friendly coatings. The chemicals unit of German conglomerate Bayer AG has recently moved its regional headquarters for its coatings, adhesive and specialty business to Shanghai and plans to move anther R&D unit focused on technology developments in Asia Pacific to the city, said Samir Hifri, senior vice president of Bayer MaterialScience Asia Pacific. China's coatings industry, already the world's largest producer, is expected to grow by 10 percent annually during the 2010-2015 period on rising demand from construction, renewable energy, automobile and home appliances industries, according to industry forecast. "We invest before the market is there," Hifri said at ChinaCoat 2011, a three-day coating trade fair which opened yesterday in Shanghai. His company is showing some latest solutions and water-based innovatio...

SHANGHAI'S stock market fell for the six trading day today, dragging its benchmark index into the longest losing streak in six months, after data suggested China's manufacturing activities have weakened sharply in November. The Shanghai Composite Index lost 0.73 percent to 2,395.07. Turnover fell slightly to 50 billion yuan (US$7.87 billion) from yesterday's 50.7 billion yuan. Materials- and finance-related stocks were among the biggest losers after preliminary data for the HSBC Purchasing Managers Index showed the country's manufacturing sector had contracted in November on reductions in both domestic and external demand. Haitong Securities tumbled 5.18 percent to 8.23 yuan. Ping An Insurance, the country's largest insurer, lost 2.04 percent to 35.60 yuan. Huaxin Cement shed 3.39 percent to 16.25 yuan. Xinjiang Ba Yi Iron & Steel Co was down 3.07 percent to 9.16 yuan. The HSBC Flash PMI, the earliest available indicator of the industrial sector's operating ...

MERCEDES-BENZ, the "125-year-old inventor of the automobile", unveiled a star-studded lineup yesterday at the 9th Guangzhou International Automobile Exhibition 2011, making a great impact with an impressive display showcasing 33 models from its four brands of Mercedes-Benz, smart, AMG and Maybach within a 2,100 square-meter booth. Witnessing its Asian Premiere at Auto Guangzhou, the smart forvision concept car once again created a sensation with its boundlessly innovative concept following its debut at the 2011 International Motor Show in Frankfurt. Key Mercedes-Benz models, including the all-new CLS-Class, all-new SLK roadster, new generation C-Class, and Long-wheel-base E-Class, were also showcased, each embodying the creativity and passion of Mercedes-Benz engineers and reflecting the auto brand's rich heritage. "As the inventor of the automobile, Mercedes-Benz has stood at the forefront of the auto industry since its birth, both globally and now in the China mark...

With the continuing surge in demand for premium sport utility vehicles (SUVs), China will overtake the United States as the largest market for Porsche AG, the German luxury car brand in 2014, said a company executive. Workers outside a planned Porsche dealership in Beijing. The German maker of luxury and sports cars said its sales will surpass 20,000 units this year, up 60 to 70 percent from a year earlier. To prepare for the growth, the automaker plans to increase the number of its dealerships across the country. [ China Daily ] "China has been our second-biggest market, with more than half of sales coming from our SUV model, the Cayenne. We expect it to beat the US to be our No 1 market in 2014, with significant sales growth from the coming, smaller SUV model, the Cajun," said Helmut Broeker, chief executive officer of Porsche (China) Motors Ltd. However, he said the company has "not decided" yet whether to locally produce the Cajun model - which is widely expect...

SHANGHAI'S stock market extended losses in the morning session for a sixth day under the weight of falling blue chips as concerns over the country's future growth take their toll. The Shanghai Composite Index shed 0.32 percent to 2,404.80. Turnover remained low at 27 billion yuan (US$ 4.25 billion) in morning trading. Financials were the worst hit this morning. Haitong Securities tumbled 3.92 percent to 8.34 yuan. Ping An Insurance, the country's largest insurer, lost 1.49 percent to 35.80 yuan. Cement producers extended yesterday's slide over concerns that slowing growth at home and abroad would reduce demands for the material. Xinjiang Qingsong Building Materials and Chemicals Group Co Ltd lost 1.30 percent to 13.69 yuan.

A cargo vessel being loaded at Lianyungang Port in Jiangsu province. On Tuesday, the World Bank lowered China's GDP growth forecast to 9.1 percent for 2011 and 8.4 percent for 2012. [ China Daily ] The World Bank hasrevised its GDP growth forecast for China to 9.1 percent for this year and 8.4 percent for 2012, citing impact of the European debt crisis andshrinking external demand. The government's measures to curb the property sector and the tightening credit policies also have an impact on the world's second-largest economy, according to Ardo Hansson, lead economist for China at the World Bank. But analysts said the downturn may not necessarilylead toan instant easing in the country's monetary policies. "Instead of taming inflation, preventing a rapid decline in the economy will turn out to be the central government's primary task in the coming months," Li Yang, vice-president of the Chinese Academy of Social Sciences and a former adviser to the central ...

FEWER residential projects may be released in Shanghai in December as more real estate developers prefer to sit on the sideline with the approach of the year-end. Altogether 29 new developments - 22 apartment projects and seven villa developments - are due to be launched for sale across the city in December, a monthly drop of 34 percent and a plunge of 55 percent from the same month a year earlier, according to a latest report released by major real estate website Soufun.com. About half of them, or 14 projects, will hit the market for the first time, Soufun data showed. "For developers who want to make a final rush for a better yearly performance, it could be a bit late to launch projects next month," said Tang Zhengwei, a Soufun analyst. "Some builders simply prefer to 'wait-and-see' now as they seek clearer signals to (help them) decide their future marketing and pricing strategies." Amid the overall weak buying sentiment, housing projects that offered sig...

Vegetable prices rose for the second consecutive week last week and will likely continue to rise, as production will diminish during the winter, the Ministry of Commerce said Tuesday. The average wholesale price of 18 staple vegetables rose 1.5 percent last week, the ministry said in a statement on its website. The rise marked the second straight week of price gains following four weeks of declines. The price of cucumber grew by 18.4 percent last week and the price of white gourd went up 7.5 percent, the statement said. The price of Chinese cabbage fell 12.6 percent, while that of onion dropped 3.5 percent. "With vegetable production decreasing during the winter, vegetable prices will continue to increase in the near future," the statement said. The retail price of eggs fell for the eighth straight week last week, down 0.8 percent. Egg prices registered a 4-percent drop during the period. Pork prices decreased by 1.7 percent last week and by 9.8 percent cumulatively since mid...

DOMESTIC smart phone prices have dropped on average in the third quarter from a year ago as more mid-and low end devices entered the market, according to a latest industry report. The average price of Apple's iPhone has dropped 27 percent to around 5,100 yuan (US$803) by the end of the third quarter, according to a report released by Analysys International today. Prices of older iPhone4 models lowered after the iPhone4s was introduced in the overseas market last month. Smart phones running Google's Android system experienced a 21 percent price drop in the domestic retail market to around 1,900 yuan as telecommunications operators increased customer subsidies, the research firm said.

Watch Video Play Video British Prime Minister, David Cameron, says calls for temporary fiscal stimulus to boost the countrys faltering economy were "dangerously wrong". He warns that Britain risks the fate of Italy or Spain, if he wavered from debt reduction plans. Speaking to business leaders a week before the governments autumn budget statement, Cameron did flag some low-cost measures to support growth, such as underwriting mortgages for first-time homebuyers. The Conservative leader said proposals from the opposition Labour Party for a government cash injection to boost the economy, lacked support from businesses and would make Britains economic problems worse, not better. Cameron adds, Britain would face a crippling rise in government borrowing costs if he and his Liberal Democrat coalition partners deviated from a plan to largely eliminate the countrys budget deficit over the next five years. Editor: Zhang Hao | Source: CNTV.CN

The World Bank on Tuesday projected a growth of 9.1 percent for China in 2011, followed by a slower growth of 8.4 percent in 2012. The developing East Asia as whole is expected to grow by 7.8 percent in 2012, down from 8.2 percent this year as the growth continues to moderate on weakening external demand, the bank said in its latest East Asia and Pacific Economic Update. Soft landing for China Bert Hofman, the bank's chief economist for East Asia and Pacific, said the leading indicators projected further softening for China in the coming six to 12 months but "do not signal an immediate hard landing." Nevertheless, the growth is expected to slow as external demand weakens and China pushes forward its own structural adjustment towards economic growth driven more by domestic demand. "While the central projection is for a gradual deceleration of growth, the risks are tilted to the downside. The global outlook has become increasingly precarious as advanced economies growt...

SHANGHAI'S stock market fell in the morning session following slumps in the overseas markets amid concerns the US government will be forced to submit to US$1.2 trillion in automatic spending cuts. The Shanghai Composite Index fell for the fifth trading day in the morning session with a drop of 0.94 percent to 2,392.47. Turnover was a mere 26.7 billion yuan (US$4.2 billion) in early trading. Building material makers, such as cement and steel producers, were among the worst hit this morning after Citigroup Inc said property investment might be cut back "significantly." Anhui Conch Cement Co shed 1.39 percent to 16.98 yuan. Baoshan Iron & Steel Co retreated 1.37 percent to 5.03 yuan. The sloppy Shanghai market echoed performances in other Asian markets this morning, as fears about the ability of politicians on either side of the Atlantic to tackle huge debt burdens sapped investor confidence.

Deng Xianhong [Fil photo] China's top foreign exchange regulator said on Monday that China will continue to crack down on the influx of hot money as a result of complicated economic conditions at home and abroad. "Outstanding achievements have been made in the country's campaign against hot money inflows," Deng Xianhong, deputy director of the State Administration of Foreign Exchange (SAFE), said in a statement on SAFE's website. SAFE investigated 1,865 cases of foreign exchange irregularities in the first half of this year, involving more than US$16 billion in illegal funds, up 26.2 percent and 26.9 percent year-on-year, respectively. Deng attributed the "outstanding achievements" to the country's investigations into illegal foreign fund inflows, as well as an investigation and supervision system that covers all foreign exchange transactions under both current account and capital account. He noted that SAFE will continue improving the system while e...

Watch Video Play Video China and the United States signed five economic and trade agreements at this years JCCT meeting. Chinas National Energy Administration and the US Department of Commerce, inked deals covering intellectual property rights, technology, and trade. Chinas National Energy Administration and the US Trade and Development Agency signed an energy deal; and another one in investment. The 22nd China-US Joint Commission on Commerce and Trade is being held in Chengdu, in Chinas southwestern province of Sichuan. The 22nd China-US Joint Commission on Commerce and Trade is being held in Chengdu, in Chinas southwestern province of Sichuan. The 22nd China-US Joint Commission on Commerce and Trade is being held in Chengdu, in Chinas southwestern province of Sichuan. The 22nd China-US Joint Commission on Commerce and Trade is being held in Chengdu, in Chinas southwestern province of Sichuan. Related stories Key meeting focuses on trade issues 2011-11-22 China, US hold trade ...

Container ships are berthed at the Port of Keelung in Taiwan. The island's export-order growth quickened in October as sales to the United States and the Chinese mainland jumped. Orders, an indication of shipments in the next one to three months, climbed 4.38 percent from a year earlier, after a 2.72 percent gain in September, according to official data released yesterday.

SHANGHAI'S key stock index was flat today after China Vice Premier's warnings against risks in global and Chinese financial system caused banking stocks to plunge. Property developers however gained on speculation over easier policies. The benchmark Shanghai Composite Index was down 0.06 percent to 2,415.13 points. Turnover fell nearly one third to 49.5 billion (US$7.8 billion) from last Friday. China's Vice Premier Wang Qishan said the global economic situation was "extremely severe," and warned against risks in China's financial system. "The global economic recession triggered by the financial crisis will be long term, and China should make its prudent monetary policy more forward looking, targeted and flexible," said Wang over the weekend. He also said that financial institutions should avoid blind expansion and should prioritize risk management. Banks fell. Bank of China lost 0.7 percent to 2.91 yuan. Industrial and Commercial Bank of China fell ...

Despite a capital injection of 1.8 billion yuan (285.7 million U.S.dollars) from its parent company Shougang Group, steelmaker Beijing Shougang slumped by the daily limit of nearly 10 percent to 3.89 yuan in the morning session Monday. Shougang Group announced the plan that it would inject the assets of a steelmaking plant in Qian'an, a small city in Hebei Province, to the Shenzhen-listed company Monday, on which Beijing Shougang resumed trading after a more-than-one-year suspension. The group also announced to inject the assets of its mining unit of Shougang Mining into the listed company in the next three years. China's stocks ended lower at midday Monday, with the benchmark Shanghai Composite Index down 0.37 percent to close the morning session at 2,407.74. The Shenzhen Component Index lost 0.12 percent to close at 10,012.72.

Watch Video Play Video In the US, Republicans and Democrats have all but conceded defeat in the quest by the congressional "super committee" to identify 1.2 trillion U.S. dollars in budget savings by Wednesday. Democrats generally advocate a mix of spending cuts and increased revenues to achieve the savings target. Republicans, however, argue that more taxes on the wealthy would jeopardize job creation. Economists say the failure of the "super committee" may have dire consequences for the U.S. and lead to another downgrade of its credit rating. However, most analysts say it won't lead to a huge sell-off in financial markets. Related stories U.S. economy to continue slowing down in 2012: economist 2011-11-18 Editor: Liu Fang | Source: CNTV.CN