E-commerce to be taxed
Officials say e-commerce will be taxed even if it hurts Internet development. In 1999 online sales reached RMB 55 million accounting for less than 0.02% of total consumption, compared to 1.4% in the United States. But in two years, e-commerce turnover could reach as much as RMB 10 billion, the Information Ministry estimates. (South China Morning Post, 31 July)

Motorola, Nokia, Ericsson, Siemens top China's cell-phone sector, survey says
Motorola, Nokia and Ericsson remain the top-three companies in China's cell-phone market with market shares of 31.9%, 29.4% and 21.4%, respectively - but all of them are wary of German telecom giant Siemens (7.3%) which is coming on strong. (ChinaOnline, 1 August)

Government official sentenced to death for graft
A former vice chairman of the National People's Congress, Cheng Kejie was convicted for soliciting and accepting bribery from 1992 to 1998 during his tenure as chairman of the Guangxi provincial government. Barring an unlikely stay of execution, he will become the highest-ranking official to receive the death penalty for corruption since the Communist Party took power in 1949. (ChinaOnline, 1 August)

Machine tool industry on the rise
After five years of negative growth and four years of losses, China's machine tool industry grew steadily in the first half of this year, continuing its recovery that began in the fourth quarter of 1999. According to analysts, the recovery was the result of increased investment in technology (jump-started by the military-industrial complex's investments), coupled with investment in infrastructure and construction. (ChinaOnline, 1 August)

China emerges as world leader in sewing machine production
China has become a world leader in sewing machine marketing and production.The latest data shows that China makes 7 million sewing machines a year, 45% of the annual global total of 16 million. (ChinaOnline, 1 August)

Chinese state-owned assets increases
The Chinese State-owned assets reached RMB 9,096 billion by the end of 1999, 10.6% more than one year ago. RMB 5,331 billion was in 217,000 commercial and industrial enterprises and RMB 801 billion in financial enterprises. The State-owned assets also includes RMB 101.5 billion in overseas enterprises. (Xinhua, 1 August)

Kentucky Fried Chicken (KFC) has 370 outlets in China
The US fast food giant has increased its outlets in China to 370 since its first restaurant opened in 1987. At present, Beijing alone has 45 KFC restaurants, employing 25,000 people. The remaining outlets scatter in 90 other cities across China. Over the past 13 years, KFC outlets have sold out 156 million chickens in China. (Xinhua, 1 August)

Carlsberg (China) to be bought by Tsingtao Beer
Carlsberg is not the only foreign beer maker who has faced problems in China. Like many foreign investors excited by Chinese growth rates, the foreign brewers had over-estimated demand for premium products. Chinese breweries responded with better packaged and cheaper lager, leaving foreign competition struggling across China. (ChinaOnline, 2 August)

Sales of consumer products increased in June, but at a slower rate
Measured by consumer purchases, the outlook for China's economy remained guardedly optimistic in June. Total retail sales of consumer goods in June rose 8.9% from the same period in 1999 to RMB 264.52 billion. This rate of increase, however, was 2.6% lower than in May. (ChinaOnline, 2 August)

China farmers foundering in new economic landscape
In the first half of this year, China's agriculture grew only 1.5% from the same period last year. This makes up half of the projected growth rate anticipated by the Ministry of Agriculture at the beginning of the year. The slow pace of agricultural growth was due in part to depressed prices and lowered output resulting from an oversupply of agricultural products, as well as the serious droughts that led to lower grain production. (ChinaOnline, 2 August)

Poor harvest means higher prices for farmers
Chinese farmers are likely to benefit from the expected drop in grain production this year, because it will drive the grain prices upward. According to forecast, China's summer grain output will fall by 9.3%. (South China Morning Post, 3 August)

Future for only three state trust firms
Beijing has decided to retain only three of its 14 state-level trust and investment companies. The ones to be retained are China International Trust and Investment Corp, China Trust and Investment Corp for Economic Development, and Chung Mei Trust and Investment Co. China Everbright International Trust and Investment Corp will be shut down because of bad asset quality. (South China Morning Post, 3 August)

China's pharmaceutical industry increasingly opened up to foreign investors
During WTO negotiations, China promised to open up the pharmaceutical distribution and medical treatment services, and relinquish control on imports of large-scale medical equipment. China has more than 6,000 pharmaceutical producers - 1,000 of them are losing money - and more than 16,000 medicine wholesale firms. These numbers will be dramatically cut in the next five years, when China is expected to have 45 to 50 large-scale medicine distribution groups or companies whose combined sales will account for 70% of the sector's total. (China Daily 3 August)

China to further liberalize auto sector
The government is likely to allow auto makers to manufacture all varieties of automobiles and auto products and liberalize prices on the car market. It also considers to stop levying irrational taxes, such as consumption tax imposed on auto factories and license tax imposed on car-purchasers. Industry observers commented that in spite of loosened control and hefty price cuts, consumers are still very cautious on buying cars. (Xinhua, 3 August)

Complaints about poor service, product quality on the rise
In the first half of 2000, the State Administration for Industry and Commerce (SAIC) received a total of 93,010 complaints from 60 cities across China. Of those complaints, 46.2% concerned services, a level unprecedented in previous years. (ChinaOnline, 3 August)

China's textile industry booming
China's textile industry has earned more than RMB 7.9 billion in the first five months this year, more than quadrupling that during the same period last year. China has the world's largest textile and clothing industry, with the export volume rising by an annual average of 16.8% from 1970 to 1999. (People's Daily, 4 August)

China to become world's 2nd largest aviation market
According to a market survey by Boeing, China's civil aviation industry will require 1,790 jet planes worth USD 137 billion in the coming two decades. (People's Daily, 4 August)

Pharmaceutical maker plans drugstore chain
999 Group, China's biggest pharmaceutical manufacturer, plans to set up a chain of 5,000 to 10,000 drugstores across the country. Industry insiders believe that if the strategy succeeds, it will start a round of price cutting in the industry as well as drugstore mergers and acquisitions. (ChinaOnline, 4 August)