You are dumping and we are hurt, US ruled. Your ruling is unfair and we will appeal, China responded. Trade relations between China and US now face another tumbling stone.

The US Department of Commerce decided to impose tariffs on Chinese color TV sets, ranging from 4.35 to 24.48 percent on responded Chinese TV makers. Those who just kept silent will face even much higher tax. Chinese TV makers are considering to appeal to the Court of the International Trade Commission in the US.

The Chinese government and affected TV producers, especially the big four makers, are quite unhappy with the ruling, saying it's unfair. TV production and distribution in China is operated in a market-oriented system. In addition, most color TV exports to US were made of raw materials and parts from the US and Japan. Given this, China sees no reason for US to regard Chinese color TV sets as products from a non-market economy.

The status of a non-market economy for China has long been standing at the core of the problem that has made China the first target of anti-dumping cases in the world for seven years in a row. Chinese businesses were accused of selling products at prices lower than costs and often lost such cases because their costs of production and distribution were not regarded as the real costs for their products. Instead, costs of the same products from a third countries were used as a reference. And anti-dumping taxes to be imposed on Chinese products were also based on such calculation.

However, a significant breakthrough has been made recently.

New Zealand recognizes China as a market economy and China appreciates it. Talks on free trade will be launched soon between China and New Zealand. China regards the recognition as a very positive beginning of having its status of market economy recognized by more economies in the world. China has also urged EU to grant the market economy status. China appreciates New Zealand's recognition of market economy

Talks on free trade have been or will be launched between China and several other nations and regions. The two most populous countries, and also the most rapidly growing countries in the world are talking about a free trade system between them. Talks may be long before any agreement can be reached as China and India have competition in software industry, gap in manufacturing sector and disputes over territorial sovereignty. But they have the same needs and desire to develop their economy. And cooperation is always possible when there are common interests. Likely Sino-Indian FTA conductive to nation

Cooperation between China and central Asian countries will help the old silk road turn a new lease of life. In addition, China and its central Asian neighbors are making joint efforts to promote their border trade. China and Kazakhstan is preparing for building a free trade zone. The Shanghai Cooperation Organization serves a platform for closer ties between China and central Asian nations. China will host the Third International Silk Road Conference in October in Xi'an. China inks transport deals with central Asian nations

In the south, Guangzhou is hosting its largest export commodity fair. Manufactured goods, souvenirs and gifts, and commodities for daily use are on show. China's newly appointed Commerce Minister Bo Xilai was present at the opening ceremony. 95th China Export Commodity Fair opens

Database for Q1

Generating more fiscal revenue is not an easy task for China in 2004. There seems to be more policies reducing tax collection. Budget for 2004 is focusing on expenditure control and agricultural issues. China's WTO membership also means China has to keep less barriers and have more open sectors this year. China's foreign trade still soared up in the first quarter this year. But now there are billions of trade deficit. But some experts say this is largely due to the massive imports in February, which is not likely to happen again this year. Fiscal revenue expected to increase by 20 percent in 2004China's foreign trade deficit totals US$8.43bln in Q1

Tax revenue for the first quarter saw a two-digit growth of 25.4 percent, standing at 627.8 billion yuan. China's central part has made the most remarkable progress while the east and west have also improved their performance. Tax revenue in first quarter grows

Overseas investors have high hope on Chinese mainland market. Influx of overseas direct investment in Chinese mainland market is still gathering momentum. And this has contributed to the increase in forex reserves for the first quarter amid the trade deficit. China has tightened control on conversion of foreign currencies into RMB to avoid yuan speculations. Overseas direct investment in Chinese mainland surges Forex reserves jump 39.2% to US$439.8b

Yes the demand is rising, but not as quickly as the supply, or as what was imagined. Yet despite of the government warnings, sectors of steel, cement and aluminum are still heating up by three digital growth in a "low-level copy-cat" way. Any they are swallowing too much energy and raw materials, especially when the whole country is facing severe electricity shortage. The central government, highly vigilant against the inflation, vowed to step up macro control. A large local iron project in Jiangsu Provinece is under the scrutiny of the central government. And banks have to put more money aside. Some experts hold China's economy will grow by 9 percent this year. China to continue enhancing macro controlCentral bank moves towards 'healthy' Chinese economyInvestment in China's three industries soars despite government warning

Steel prices rose by about 40 percent for the first quarter and the upward movement will continue. Heavy consumers of steel are growing. Given this, it is not easy to drag down steel output or investment when the demand is strong. Steel prices on rise in China for first quarter

The textile industry also experienced high speed growth last year, actually the highest in 11 years. Both demand and investment soared up. Exports, of course, rose remarkably. But that has caused complaints and even trade disputes from foreign markets. This year the expansion will slow down. We have to wait and see in what way will China's textile industry go in an international business environment which seems to be getting tougher for it. Soaring textile investment driven by demand, technological progress: expert

Industries

Bank of China has not decided yet where to list. It is supposed to go public in 2005. Now it is busy with disposing its NPL, conducting shareholding reform, and improve its corporate governance. By the end of June, it will decide strategic investors to diversify its shareholding structure and bring advanced management experience . It denied a massive slash on employees in the course of the reform to be a joint-stock bank. Bank of China has yet to choose where to list

Shipping and shipbuilding industries are going ahead in full steam in China, especially in Shanghai. The captain of China Shipping Group is navigating the shipping giant into a new expansion age. They are planning more fund-raising from the capital market. And China State Shipbuilding is snowed under orders. They are seeking cooperation overseas. Shipping giant to issue corporate bondsChinese leading shipbuilder eyes more cooperation with Japan

China's efforts on tapping more energy sources around the world now paid off. Both China and Iran expressed willingness to cooperate on oil and gas exploitation and marketing. Sinopec has already had a gas deal with Saudi Arabia. Now it expect to have another partner in the Middle East. Sino-Iranian LNG deal in pipeline

For a commodity which is still something luxurious to most ordinary consumers, a 10 percent price cut means much. And what if the price cut is even expected to take place on a year-on-year basis? The reason lies in the lower costs. But for producers, this means more fierce competition and smaller margin. Generally China's auto industry has been sharpening its international competitiveness. Auto multinationals have injected advanced technologies and capital here in Chinese market. The market potential is still great. Figures from Ministry of Commerce showed China's auto and parts will export 15 to 20 billion USD in 2005, from 4.3 billion in 2003, and further to 70 billion to 100 billion USD in 2010. 10% yearly price fall predicted for China-made sedans

Xiamen is home of China's several electronic giants, including Xiamen Overseas Chinese Electronic (Xoceco). A project to develop China's semiconductor lighting will further reinforce its power in electronic industry. China to build semiconductor lighting industrial bases

It is not making profits here now, but surely it will. The world's leading e-commerce operator eBay is so confident to China that it believes Chinese mainland will be its biggest market in 10 to 15 years. Chinese mainland to be eBay's biggest market: eBay

Communication platform

The Ministry of Information denied the possibility of issuing any new license for mobile phone production. Licensed production has long been regarded an umbrella for Chinese cell phone producers. China is the largest cell phone producer in the world now and home made mobiles have more than half of the market. But this does not necessarily mean cell phones made in China are quite competitive in the world market. Some license holders make the limited license resources a cash cow by leasing their rights. Technological innovation is another problem. Fortunately domestic producers have come to realize it and are doing more R&D. Some of the top ones are eyeing 3G mobiles. MII refutes handset license rumors

China Telecom added another ten provincial networks to its existing operations through a purchasing plan from its parent company. It will issue shares worth about 3 billion USD to fund the acquisition. China Telecom announces purchase plan

China Mobile clinched a deal with Siemens. The latter will help to build network infrastructure for it. Siemens inks deal with China Mobile

Kejian mobiles debuted in the Indian market where mobile phone users is increasing by one million every month. As its local partner, India's Trust Telecom Technologies is responsible for the distribution and marketing of Kejian mobiles. Bird, another leading mobile producer from China, has made its presence in India. China's Kejian mobile phones launched in India

CEPA

Hong Kong professionals who are interested in developing their careers in the mainland will learn to adapt to the working environment different from that in Hong Kong. HK launches 'Mainland Orientation Program' for professionals

Backgrounder: Adjustments of deposits reserve ratio

The first adjustment was made in 1985, unifying the reserves ratio at 10 percent for lenders nationwide. This downward revision was set to overcome negative impacts brought by high reserves ratios running between 20 to 40 percent for different categories of deposits.

In year 1987, the central bank revised the ratio upward by 2 percentage points to 12 percent, to curb potential inflation and tighten money supply. One year later, the central bank again revised the ratio upward by one percentage point for similar reasons.

The thirteen percent reserve ratio was kept unchanged for nearly 10 years. In March 1998, the central bank made a major revision of the policy, setting the lowest ratio at eight percent, and leaving room for further upward revision by individual banks.

In year 1999, the ratio was again revised down to six percent.

The next change took place in 2003 with a minor one percentage point upward revision.

Courtesy to CCTV-9

By People's Daily Online Lijia