Biz weekly Highlights: the effect of policies and regional cooperation

The week is very busy, packed with laws, regulations, policies and regional cooperation. And it left with us hopes, excitement, and doubts. We have much to expect. And it takes time.

From Pearl Delta to Pan-Pearl Delta
Standing at the center of the proposed China-ASEAN free trade zone and spanning across the east, west and central China, the Pan-Pearl River Delta is gearing up the regional cooperation in this area. And Hong Kong and Macao will due to have an important role to play. The State Development and Reform Commission promised to give regional development plan a priority in the next five-year plan. The key to any successful regional cooperation, analysts say, is breakthrough of geological barriers and efficient allocation of resources. Framework accord inked in Guangzhou to push Pan-Pearl delta cooperation

Gather, and get stronger
The 3rd APEC Medium and Small Enterprises Technology Conference kicked off on June 2 in China's picturesque Qingdao city. Cooperation and communication among SMEs in the region are top on the agenda. China is trying to create its transnational giants with international competitiveness through reform on SOEs. Private enterprises, mostly in small and medium size, are thriving and striving to get bigger. There are 10 m. SMEs registered in China.Private or state-owned, big or small, Chinese enterprises seem to be expected to launch two campaigns to realize their dreams: building a perfect corporate governance on one hand and "going out" on the other. For those which have gone out, the government is keeping a close watch, giving special care and considering more help to them. More than 30 countries have registered for the 8th China Investment Trade Fair to be held in Xiamen in September to attract Chinese captital. Enterprises encouraged to invest overseas

When they are in effect
June 1 saw 11 laws and regulations governing financial and trade sectors take effect and 1 policy issued. Among them, the Securities Investment Fund Law and the Auto Industry Development Policy have sparkled special excitement. But there are still pending problems to be clarified for the former and analysts expressed their varied interpretations for the latter right the day after the policy was made public. To honor its WTO commitment, China will remove auto quotas from 2005 and slash its auto tariff to 25 percent on average. For economical cars, it will be as low as 10 percent. 4 harbors, Dalian, Tianjin, Shanghai and Huangpu, together with 3 land parts, Shengzhen, Manzhouli and Alataw, are appointed as the customs to deal with car imports procedures. Away with prejudice against non-locally made auto-cars11 financial and trade laws and regulations take effect on June 1

China will have a unified, national, open, and competitive grain market in place. That's what the newly issued regulation on grain trading on June 3 all about. Regulaion on grain business issued

Looking back and looking ahead
"So long as the measure and policies are truly implemented, the economy can surely grow in a stable and relatively faster pace," said Chinese Premier Wen Jiabao. "The economic performance is heading in the direction of macroeconomic management targets," said Liu Mingkang, Chairman of China Banking Regulatory Commission the same day as Premier Wen made the above mentioned remarks at a different occasion. Macro-economic control begins to pay off: PremierCBRC: Supervision move paying off

Japan's economy is on its recovery. China's robust economic growth is partly attributable to this. To Japan, China is not only a production base, but also a market. Japanese manufacturers to expand business in China

A report by Ministry of Commerce believes China's economy will move forward on a fast lane for 2004. Forecasts for the 2nd quarter, the 1st half of the year and the whole year, as well as factors underlying these forecasts are all detailed in it. MOC report: an outlook for China's economy in 2004

China is drafting its national strategy of intellectual property rights. Naturally it will improve the IPR protection as many have expected. But it will go further beyond protection. Creation is what it is about more importantly. Nation plans IPR defence strategy

After analyzing China top 1000 industrial enterprises, the government found China's SOEs (state-owned enterprises) was in a high growth round. Top on the list is the Daqing Oilfield. NBS releases China Top 1,000 Industrial Enterprises list

wait and see?
Will NASDAQ distract its attention from China? There are different messages from there. One is that NASDAQ is the "natural home" for Chinese enterprises while the other is that NASDAQ will not go international. Huang Huaguo, NASDAQ chief representative in China, is leaving China --- leaving behind him doubts about NASDAQ's strategic shift. Other overseas exchanges, including Canada, Singapore and London, are all showing their welcome attitude toward China. China has launched its own board for small and medium enterprises, though it is still a part of Shenzhen Stock Exchange. But as there was d NASDAQ announces more support for Chinese firms

A commodity having direct bearing on the national economy, cotton is a new product in China's futures market. When it debuted at Zhengzhou Commodity Exchange on June 1, it did not arouse much interest of investors and closed down. But Shang Fulin, Chairman of China Securities Regulatory Commission, who was at the spot that day, believed the launch of the transaction itself marked a good beginning and the prospect for cotton in China's futures market would be promising. And Brazil Mercantile and Futures Exchange (BM&F) set up an office in Shanghai to promote itself, especially its soybeans futures. China is also expected to launch more financial futures. Leo Melamed, Father of world's financial futures, has full confidence in prospect of China's futures market. Exchange starts trading in cotton futures

Welcome in and march outward
Even before Chinese President Hu Jintao sets his steps on Uzbekistan, expectations on an agreement on energy cooperation between the two countries are very high. Ties between China and its central Asian neighbors are getting closer, bonded especially by energy cooperation. China, Uzbekistan to sign energy cooperation document

China and its largest ASEAN trade partner Malaysia celebrated the 30th years anniversary of diplomatic relationship with messages of congratulation and visits between top leaders, business investment and Malaysia's recognition of China's full market status. Two projects had the honor to have Malaysian PM at the signing ceremony. And a third one on thermal power generation brings Malaysian capital inflow into China's power market in Qingdao. China, Malaysia launch two major projects

A country with thousands years of history of silk making, China is facing challenges on its textile industry. Chinese textiles are besieged with complaints in some foreign markets against the low prices. Cooperation with global buyers may be a good way to promote the products. Anyhow, there are quality textiles available here in China. Global sourcing giant to promote Chinese textiles on world market

A strong presence of Newbridge Capital makes Shenzhen Development Bank the only foreign holding Chinese bank. This took place when Newbridge stood a China chance to participate. But finally a turning point came out of everyone's expectation and it proved to be a good chance for Newbridge. On the other hand, foreign banks are very cautious about making more presence in China. HSBC opened a new branch in Shanghai while Citibank planned to debut its wealth management service CitiGold in the Chinese mainland recently. And these moves, analysts say, were made after their very careful studies on risks and returns. Observers have found the two banks seem to have special interest in Shanghai. US firm buys into Shenzhen bank

China's capital city has been extended authority to put the supermarket approval procedure on a fast track --- limited to some foreign-invested players like 7-11 and Champion though. And this will put more pressure on Chinese competitors. Foreign-invested supermarkets to enjoy simplified gov't procedures

Toshiba becomes a shareholder of Midea, one of China's leading appliance maker. Their cooperation is focused on air-conditioners--- still under the brand of Midea, which hopes to be China's dominant brand in home appliances. Competition in China's air-conditioner market is very hot. Manufacturers launched price wars and "new concepts" to court consumers. But analysts urge them to pay more attention to their technological innovation rather than marketing gimmicks. Joining hand with Toshiba will help Midea extend to overseas market and strengthen R&D.Toshiba buys shares of Chinese air conditioner maker

Fixing eyes on fixed investment
Not only morning calls. CBRC, China's banking watchdog, is taking actions. A sweeping inspection has put bank loans to fixed assets under scrutiny. It is understandable that the most vigilant eyes are casting on projects involving overheating sectors and land use. In terms of investment, those exceeding 3.6 million USD is the emphasis. CBRC announces loan inspection

Aluminum is on the list of China's overheating sectors which are under strict control of the government. But this does not seem to have dampened the enthusiasm of the country's top enterprise in this industry for expansion --- both home and abroad. China's top aluminum company to raise output to 8m. tons next year

By People's Daily Online



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