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Sino-Swiss Trade in over-gear
Exports from Switzerland to China have increased by 34.8% (to CHF 417 Mio.) and imports from China to Switzerland by 32.7% (to CHF 699 Mio.) from January to April compared to last year. Total exports to China and Hong Kong amount to CHF 1,591 Mio. (+38.7%) and total imports from China and Hong Kong to CHF 992 Mio. (+39.1%).
Beijing car craze
While actual car sales in China are still very low, the media and public paid much attention to the 7-day 2000 Beijing International Automotive Industry Exhibition opening on 6 June. Among nearly 1000 auto makers and suppliers from 23 countries and regions we found only one Swiss company (Oetiker Industries, Tianjin Ltd.).
1st Swiss Law Firm in China
In a ceremony at the Ministry of Justice, the Swiss Law firm Wenger & Vieli on 8 June received their license to open a representative office in the People's Republic of China.
China started to admit overseas law firms in 1992, and they do mainly non-court proceedings. According to the Ministry of Justice, China's legal service sector will open wider after the nation gains full WTO membership.
Long overdue reform for China's capital markets in the air
In its June 3 edition (p. 86), the Economist runs an interesting article on the current situation and prospects of the Chinese capital markets. They refer to serious flaws such as insider trading, disregard of minority shareholders and discrimination of private companies, but also predict reform and opening due to need of cash for private companies and investment opportunities for pension funds.
China, U.S. sign housing accord
A "Sino-U.S. Memorandum on Model Projects in the Housing Industry," was signed in Beijing. Under this agreement, China will apply new design methods in building housing models in Beijing, Shanghai and other cities, while the U.S. government pledged to provide building materials and equipment. The two countries' cooperation in the housing sector also includes another priority project, namely cooperation in housing financing, which already is under way. (ChinaOnline, 5 June)
The question is, whether such an agreement leads to disadvantages for housing material suppliers who do not provide U.S. standard material. Affaire à suivre.
Ladies' Nights: Site for women launches in China
A large-scale e-commerce consumer Web site targeting women, 1001 Nights Network
(www.1001n.com), opened its doors to the public on May 29. The Web site features links on fashion, employment, family life, food, health, books, education, love and other subjects. (ChinaOnline, 5 June)
Timber! China gets too many log imports
China now has more than 1 million cubic meters of overstocked imported wood. This has caused a downward spiral in its market price. This year's surge in log imports was caused by the government's relaxed authorization and zero-tariff for log import as well as by the anticipation of a surge in demand as a result of the government's plan to develop the western part of China. (ChinaOnline, 5 June)
No vacancy: China hotel industry rebounds with WTO
China's hotel industry has rebounded thanks to increased foreign business travel. From January to April of this year, the occupancy rate of large domestic hotels was 55.6 percent, and the annual rate may reach a record level of 60 percent. Hotel room prices jumped 21 percent nationwide in the same period. (ChinaOnline, 5 June)
China raises Oil Prices
China has decided to raise the prices of manufactured oil for the domestic market in a move to attune its oil pricing to the global market. The State Development Planning Commission allowed the producer prices of gasoline and diesel oil to rise by 300 yuan and 100 yuan per ton, respectively, in a directive released on June 1.
China has become a net petroleum importer since 1993 and its oil imports are on the rise. Last year, imported petroleum accounted for 20 percent of the domestic market. Echoing the price rise in the international petroleum market, China began to increase its oil price from last November. Observers noted that the latest upward adjustment is still lower than the price level on the world market, leaving room for further price rise.
Tax preferences to support high technology projects
China's Ministry of Science and Technology has announced that in order to support high technology industrial development, China will provide even more policy preferences to support the development of high technology projects. Measures will include: reduction of VAT for software products from 17% to 6%, certain products may even be granted a 0% preference on VAT. (China Watcher, 6 June)
China to experiment with JV drugstores
The Chinese government has announced it will facilitate the establishment of the Sino-foreign joint venture medicine import/export business, expand its exports and begin trials in the drug retail sector. The State Development Planning Commission stipulated that investors in JV medicine import/export businesses in China should have strong economic backgrounds, advanced management experience and marketing technology, a broad global sales network, a good reputation, as well as an excellent performance record, and they must be capable of boosting JV exports. (ChinaOnline, 6 June)
ICBC issues first 'real' credit card
The Industrial and Commercial Bank of China (ICBC), the country's largest commercial bank, issued its first credit card.
Prior to the new credit cards, all of ICBC's cards required customers to make a deposit before they spend. China's first genuine credit card had been issued by the Guangdong Development Bank in Zhejiang Province. The first nationwide credit card had only recently been developed by the CITIC Industrial Bank. (China Daily, 7 June)
More than10 million Chinese Internet users
More than10 million Chinese Internet users
Statistics provided by the China Internet Network Information Center (CINIC) show that the number of Chinese Internet surfers has exceeded 10 million. Internet has been available in China since 1994. (Xinhua, 7 June)
ChinaOnline (8 June) published excerpts of a survey on a series of issues, including the "typical" Chinese Internet user, differences in Internet use between different Chinese cities, the prospects for e-commerce in China, and Chinese Internet users' leading concerns about network security.
China's waste paper imports up
In 1999, China spent USD 245 million in foreign exchange on waste paper imports, the highest forex expenditure on the import of any single item. In recent years, China's imports of waste paper from the U.S. and some European countries have gone up considerably and will continue to do so. Expanding domestic papermaking productivity and a shortage of timber resources have driven waste paper imports up. Waste paper has long been imported in accordance with permits issued by the Environmental Protection Administration. These permits exempt import duties and generally encourage waste paper imports.
Reminbi to go convertible?
Based on recent examples of non-intervention by the People's Bank of China in-spite of larger than usual fluctuations against the US Dollar, the financial market expects the renminbi to fluctuate within a broader range, which is considered an important step in the renminbi's achieving full convertibility. Currency observers also say that once China relaxes the renminbi's fluctuating range, the currency may show signs of appreciation. (ChinaOnline, 8 June)
New regulations for drug packaging
China's State Drug Administration (SDA) recently issued new regulations for the materials and containers used in packaging pharmaceutical products. As from October 1, unregistered packaging will no longer be produced, sold, managed or used. (ChinaOnline, 8 June)
Beijing Property Prices rise at last
According to a study by international property consultants, demand for office space in the capital has increased just as the stream of new buildings coming onto the market is slowing - resulting in the first rent increases since mid-1995. Nearly half of all new leases signed last year involved Internet of techonlogy-related firms. (Far Eastern Economic Review, 8 June)
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