China and Russia have built strategic cooperative partnership. But the bilateral trade between the two countries seems to need to be further improved to match this close relationship.

Sino-Russian trade relations have stepped into a fast growing period in recent years. Last year bilateral trade volume reached US$15.76 billion, which was a record high. Yet Sino-Russian trade structure is very simplistic composed mainly of raw products, with high-tech and high value-added products making very small proportions. The problem with Russia is its dragging out on major projects such as those in the area of energy resources cooperation e.g. Angarsk-Daqing oil pipeline construction plan. Also, some Russians are still buying the "China Threat" theory.

This year marks the 55th anniversary of the establishment of diplomatic ties between Russia and China. And the two sides are getting closer to each other in the front of economic exchanges. Russian ambassador to China expressed high hope to trade between his country at China's Guangdong province where a trade fair is being held. Before him, his Chinese counterpart expected Sino-Russian trade volume to rise to 100 billion a year. Russia plans to upgrade trade with Guangdong

Laws and regulations

China enacted its revised Foreign Trade Law. It will take effect on July 1. Individuals can conduct foreign trade. Foreign trade operators can tap more business possibilities. But any players in breach of the rules will face more severe punishment. Foreign Trade Law amendment approved

China revised its rules on the use of bank loans. If you have any suggestions, log onto website of the People's Bank of China or China Banking Regulatory Commission before May 6. China seeks public consultations on draft revisions of Loan Rules

China Life, whose parent company will face 8 million fines due to a state audit result, is under an informal probe by SEC and a lawsuit in US. Information disclosure is regarded as the most effective way to protect investors' interests, especially small and medium investors. In this aspect, Chinese businesses have a lot to do to be up to the international practice. It is necessary for industrial watchdogs, such as CBRC(China Banking Regulatory Commission), to tighten their control on one hand. Participation of world's top accounting firms does and will continue to help a lot on the other. CBRC tightens regulationsRules focus on banking supervision Ernst&Young sees china business growing

Domestic and foreign trade and cooperation

Chinese textiles will not be admitted into the 10 European countries freely after they join the EU May 1. To compensate for the losses, EU increased its quotas. The EU enlargement will also affect China's export of some agricultural products. According to an agreement reached through GATT negotiation 10 years ago, textile quotas are supposed to be fully removed among WTO members by Jan.1, 2005. But the prospect for that sweeping change is not clear as US and other countries are not willing to make that happen. Generally, China will face an increasingly difficult environment for its foreign trade. EU announces increase in textile quotas

These subsidies are not for exporters, but importers, as well as produers---of diammonium orthophosphate, a chemical fertilizer. China subsidizes fertilizer producers and importers

A trade fair to promote cooperation between east and west China received guests from other Asian economies. China's west is on the way of opening wider, and that's the only way to its prosperity. The fair was concluded successfully on April 8. Eighth east-west China trade fair opens

It is understandable that trade disputes rise when trade grows. The most important is how to settle these disputes. The US-China Joint Commission on Commerce and Trade is a platform not only for talks, but also for solutions. Semiconductors are the focus this time. And now EU and Japan want to jump the bandwagon of US on Chinese chips tax issue. The bilateral issue is expected to be a multilateral one.High-level talks to solve Sino-US biz disputesChina studying consultation request over chip row

A MOU signed between China and US will further promote the two countries cooperation in sky. China hopes to learn from US advanced experience in air security and management. China, US to further expand cooperation in civil aviation

US aviation giants, such as Boeing, are investing heavily in China and have close cooperation with local businesses, including Xi'an Aircraft Industry Group Company. And Chinese jets, mainly small jets, are also seeking to take off and fly to the global market. China's aviation industry made billions of losses last year. Cooperation between airliners from China and US should also be stepped up, said vice senior president of United Airlines. He welcomed Chinese airlines to expand flights through joining their club and adopting code-sharing. Chinese, US airlines should cooperate for global competition

France agrees to provide medical equipment for a Chinese hospital. So the two sides will have more cooperation on transport and environment. Chinese, French finance ministers discuss cooperation

A future auto power

China is a big producer, big consumer and will be a big exporter of autos in the future. Both domestic and foreign auto makers have ambitious plans for production expansion in China. Promises for China to be a world auto power are high. China the world's 4th auto producer Ford to set up second production base in China

Chinese automakers are still enjoying higher profits than their counterparts in other countries. But they are under the pressure now as prices of raw materials such as steel are rising. One thing they have to do is to help their struggling components and parts suppliers bring down costs, and customers' complaints in turn. Automakers ax price

Diesel engines do not enjoy a good reputation in the Chinese market as they are low quality and make the air dirty. Now there is a solution provided by a Chinese design. Volvo is also very active in producing more diesel engine trucks in China. New diesel technology runs cheaper, cleaner

Produce more and sell more in China

How can an office building erected by an IT giant make difference from those by property developers? The Blue Giant, IBM, is taking a step toward a new direction it has never been to.IBM enters real estate market

Asia's largest fluorocarbon paint plant went into production in northeast China as one of the 100 project to boost the local economy. It is a eco-friendly project with an investment of 200 million yuan.Asia's largest green paint plant up and running

A production facility will begin turn out alkali in northwest China in 2005. This two-phased project has an investment of 360 million USD and will take care of environment. Major chemical project started in Qianghai

Japanese cartoons are particularly popular in China. Now a Japanese company with more than a hundred years of history will bring more Japanese cartoons into China through its local partner in Shanghai. China is drafting a law for movies promotion and has launched digital cable TV programs. Culture seems to be something you can also cash in on. Leading Japanese ad company taps Chinese movie production market

SNCF and Alstom must be proud of their success in South Korea where they are building the country's longest rail link. Now they are eager to repeat that success story here in China. Their arch contender would be Siemens. But all have to wait until the Chinese government decides which will be running between Beijing and Shanghai, rail or maglev. China welcomes foreign capital to make its railways longer and faster to boost the economy in the next 16 years.France hoping rail project leads to China deal2,000 bln yuan to be invested in expanding railways

Intel chips will face a Chinese national wireless broadband encryption standard WAPI. Its CEO is in China now to communicate with the Chinese government to try to solve this problem. But this does not undermine Intel's confidence in the Chinese market and its chips. Intel invests US$375m in opening new chip plant in ChinaIntel establishes R&D center in Shanghai

The store is not big. But it's ambitious. Seven-Eleven stores will not close at eleven. They are open 24 hours. Seven-Eleven Japan as licensee got the license from Seven-Eleven US and will build and expand stores with its local partners to serve Beijing's residential communities. Japanese chain store magnate to open outlet in Beijing

Chinese retailers are reshuffling to meet the challenges from foreign competitors. Shanghai Brilliance Group was born as the result of a merger of two big department stores. And what is remarkable is that this merger is between two listed companies. Merger to create giant chain store

Other developments

It is easier to start a business in China than in other East Asian countries, said IFC, the private arm of the World Bank Group. It also suggested the importance of building creditor information sharing system in China. IFC report: China performs well on business environment

China's bond market got a 3.2 billion USD pump-in. China issues equivalent of US$ 3.2 billion in T-bonds

By People's Daily Online Lijia