China's economy is still in the fast lane. The lingering headaches, over-investment in fixed assets, excessive expansion of loans, and illegal land use, etc., have been eased, if not cured.

After the day when Premier Wen Jiabao said at an executive meeting of the State Council on July 14 that the destabilizing, unhealthy factors in economic operations have been checked to some extent, the stock market rebounded.

On July 16, the State Council held a press conference where a spokesman of the National Statistics Bureau released data for China's economic operation for the first half of the year. It soon encouraged optimism among experts and analysts about the outlook of Chinese economy, who offered rosy vision for the second half of the year.

But as Premier Wen warned at the meeting, problems still exist.For example, agriculture tops at the task list of the State Council for the second half of the year. But it is still a relatively "cool" sector in the "hot" economy even though the first six months of the year has seen more grain yields and the most encouraging growth of farmers' income since 1996. And this issue, like any other chains in the economy, should be addressed more by market-oriented tools rather than administrative incentives in the future. The government has stressed more than once that it will try to rely more on economic tools to navigate its economy.

Another issue worth attention is the real engine of the economy. China's economy is still driven by investment, not by consumption. In fact, the consumer prices index even jumped more than 5 percent, a warning line set by the central government.

There are uncertainties in China's economy, like any other economies in its fast expansion. But one thing seems to become clear--- the central bank will not gear up the interest rate in the near future. Speculations about China's interest rate hike were swirling around the whole world for the whole first six months. And the stock market fluctuated amid these speculations. Premier Wen warns of economic pitfallsPremier Wen: 10 economic missions for the second half of the year. Chinese economy grows 9.7 percent in first half of year

Got stuck

Jiangsu Qionghua, one of the first either enterprises listed on Shenzhen SME board, shocked and dragged down the market when it was found holding back very important information about its investment in state bond. One of its executives explained on TV that it was their financial manager to be blamed while the securities company helping Qionghua go public argued that they can do nothing if their clients intentionally kept something back. Sound plausible. But the watchdog and investors are not so easy to fool. With the hindsight, perhaps we should feel lucky as the government decided to have a section for SMEs affiliated to the main board as the first step to have an independent one for start-ups, instead of launching a so-called second board as many people had expected and asked for. Company among first listed on Shenzhen SME board denounced

DuPont may face a 300 million USD fine bill imposed by the US Environmental Protection Agency in the history. How much will Chinese customers claim? DuPont cookware, non-stick, expensive, meaning quality, is even accused of being related to cancer by local residents of its plant in US. It defended for itself saying that there is no PFOA or C-8 in their finished products and the non-stick coating, Teflon, does not decompound below the 260 centigrade. US Society of the Plastics Industry also reassured Chinese consumers about the safety of non-stick products. China's quality watchdog said it was watching closely to the development of the issue. And Dupont has make active response to concerns of Chinese consumers. But some Chinese experts warned that Chinese style of cooking, stewing, stir-frying, and boiling, makes it easy to have the temperature in the cookware well above 260 centigrade. Dupont's cookware stirs ChinaDupont non-stick cookware completely safe: interview

flying high

More Chinese companies have made their way into the Fortune 500 list this year. The fast growth of the Chinese economy has paved the way for them. The new comers are from auto and energy suppliers which fuel the country's economic development---which, in turn, fuels their expansion. But there are different voices amid the fan fare that the breakthrough has been brought by bulging quantity, not quality upgrading. Shanghai Automobile, for example, as one of the four new companies nudged into Fortune 500, has two pillars which are both joint ventures and sell foreign brands. Sales of sedans in China went up after major auto makers launched price cuts. And Shanghai GM has challenged sucessfully Shanghai VW's leadership in car sales in a pre-emptive price war. 15 Chinese companies listed in Fortune Global 500

Chinese companies are set as the favorite target of mergers and acquisitions in the Asian-Pacific region. It is a good choice for multinationals which are seeking to make and strengthen its presence in this market of great potential. Chinese state-owned enterprises have just been restructured and the private sector in this country is on the rise. Either of them are looking forward to the capital, know-how and management expertise. Chances of win-win are high if they have advantages complimentary to each other. What's more, China's banking sector, with an extending network under the operation of small and medium-sized banks, is very attractive to foreign investors. But like any mergers and acquisitions in the world, the most important thing for any such deals is the integration between the two parties involved as they are from different cultures and business environment.Chinese companies the preferred global M&A target in Asian-Pacific Region

The name of Alstom is not as familiar to Chinese people as its competitor, Siemens, although rail is the main transportation means of travelers in China. It is always confident about winning locomotive orders from China as the country is trying to accelerate its trains. It believes it willingness to transfer its technology to its Chinese partners and the friendship

between China and France will give its competitive edge in the bidding campaign.So far its tapping into the power infrastructure market in the world's fastest growing economy seems to be more successful than its foray into the rail .France's Alstom, Beijing's BSTC to form JV

To be opened and to be closed

US chip makers finally got what they were seeking for---full free access to China market and equal treatment with their local competitors. Chinese exporters still have some time to adjust their strategy. But in the US market, there is another story. It is not a rare thing these days to hear about news about Chinese products facing dumping charges. But it is rare to see that as many as three such cases ruled within one day by one country.US to impose tariffs on Chinese products

China's three oil giants have their own turf where they conduct all their operation, though they are not legally obliged to do so. But now they will extend their outreach and change the situation. This may indicate more changes in China's oil market. On July 16, a simulated fuel oil futures exchange will be held in Shanghai to prepare for a real one.China's oil giants break de-facto monopoly

By People's Daily Online