Net sale open to foreign investors
An auction gala is to be held in Beijing at the end of this month for the bulk of Chinese Internet websites who want to sell their assets. Organizers promise that foreign investors will be able to bid on an equal footing with domestic buyers, for anything from domain names, Internet technologies, web content to whole dotcom companies. Although the government has set strict rules on ISPs (Internet service providers), such as a 49% ceiling for foreign stakes in ISP companies, the overall policy environment is relaxed towards the overseas acquisition of and mergers with dotcom companies, experts said. (China Daily, 4 September)

Shenzhen to launch 2nd stock board this year, retain main board for now
To avoid a colossal drain of funds that might impair Shenzhen's banking industry, the central government recently decided that the Shenzhen main board would remain in existence while the city launches its second stock board, but that the main board will not accept new stock issues. (Hong Kong Ming Pao, 5 September)

Demand for Internet sales ready to soar
Business-to-consumer commerce in the mainland will rise from about USD 5 million last year to USD 27 million this year and USD 4.8 billion by 2004, according to BDA Associates, a mainland-based Internet consulting firm. (South China Morning Post, 6 September)

Rodia to move Asia-Pacific headquarters to Shanghai
France-based world chemical giant, Rhodia is to move all the Asian operations to China and make Shanghai its silicone manufacturing centre while closing down all factories in other Asian-Pacific countries. The company so far has launched 13 ventures in China with a total investment of USD 200 million. Rhodia is planning to establish a research and development centre in China and a purchasing centre for the Asia-Pacific Region, as well as nine application and analysis laboratories in order to improve services to Chinese clients. (South China Morning Post, 6 September)

Foreign currency rates to be liberalized
The People's Bank of China announced that China will free-up interest rates on foreign currency loans and part of the rates on foreign currency deposits from September 21, a major step forward in the liberalization of its tight interest rate system. Financial institutions will, from now on, be able to set their foreign currency lending rates in line with the international market. Interest rates on foreign currency deposits of USD 3 million or more will also be liberalized. (China Daily, 6 September)

US Senate opens debate on PNTR with China
The debate is likely to last for two weeks and with a final vote expected by September 15. While PNTR is certain to pass in the Senate, some legislation might be added. An amended bill has to be returned to the House of Representatives for a new vote, leaving little chance for its passage before Congress breaks for November's elections. (Xinhua, 6 September)

Grim situation in labor market
A total of 6.52 million SOE workers had lost their jobs by the end of 1999. Another 1.96 million workers were laid off in the first half of this year, a decline of 130,000 from the same period in 1999. What merits attention is that of the 6.99 million workers laid off by the end of June, 220,000 are not covered by government unemployment subsidies. In addition, among the 6.77 million registered with re-employment service centers, 170,000 have received no unemployment allowances and 330,000 have not been given the full amount of basic living allowances due them. (ChinaOnline, 5 September)

Tourists visiting in July increase by 19%
In July, 7.44 million tourists entered the country, up 18.7% over the previous month. Of these visitors, 866,300 were foreign citizens, up 20.6%. Also, from January to July, 47.57 million tourists entered China, up 16.2% from the same period last year. Of these tourists, 5.6 million were foreign citizens, up 22%. China's revenues from tourism also increased from January to July to reach USD 9.3 billion, up 18.6% from last year. (ChinaOnline, 5 September)

Non-alcoholic beverage sales set to double
Chinese people will consume up to 27 million tonnes of non-alcoholic drinks a year by 2005, averaging at 20 kilograms per head. Soft drink consumption patterns have also changed radically over the past few years. Carbonated drinks, which have dominated the Chinese market during the past decade, are losing ground to bottled water, tea-based drinks and specialised health care beverages. Drinks with natural ingredients and low sugar have become popular with health-conscious youths. (Xinhua, 6 September)

Persistent deflation
While the Government claims that retail price inflation is creeping back into positive territory, fierce price wars for cellular phones and television sets, air conditioners, refrigerators and even cars, suggest that deflation is not dead yet. Indeed, much of the retail price index's recent rise can be attributed to the sustained increase in global oil prices rather than a pick-up in consumer demand. (South China Morning Post, 7 September)

Hyundai establishes joint venture
Hyundai Motor Group has signed agreements to establish a new joint venture with Jiangsu Yueda Automobile Factory, which will mark the South Korean car giant's official entry into the mainland, Nanfang Dushi Daily reported on Wednesday The new 50-50 joint venture has a total investment of USD 650 million. Production capacity will be 150,000 vehicles a year. (South China Morning Post, 7 September)

SDPC adopts pricing policy to promote western China development
To promote development in western China, the State Development Planning Commission relaxed five price controls in the western region: rail transportation, airfare, auto manufacturing, pharmaceuticals and tourism. (ChinaOnline, 7 September)

Germany's Metro AG opens fourth store in Shanghai, continues expansion
The retail giant has no plans to slow down its China expansion plans, and it already intends to spread to cities such as Qingdao, Wuhan, Hangzhou and Chongqing. Metro estimates it will open another eight shopping centers around China next year. (ChinaOnline, 7 September)

No WTO for Taiwan unless as part of China
China reiterated its stance that Taiwan should join the WTO only as a separate customs territory of China and that the mainland should join the WTO before Taiwan. (China Daily, 8 September)

China's first machinery industry e-commerce site launched
Set up by the China Machinery and Electronics Billions Commercial Network Co., which was founded by the China State Machine-Building Industry Bureau (SMBIB), the first e-commerce Web site of China's machinery industry, www.e10000.com.cn, recently opened to the public. Combining e-sales with traditional sales methods, e10000.com will specialize in supplying the machinery industry and the low-voltage electronics industry with well-known and high-quality products. The Internet company also plans to set up chain stores around the country to deliver items ordered online. In addition, the e-commerce site will provide news about the industry's latest financial information, policies, supply and demand and products. (ChinaOnline, 8 September)

Sweeping changes to structure, ownership of airlines, airports
The Civil Aviation Administration of China proposes allowing foreign investors to hold 49% stakes in airlines and majority stakes in airports. Ten airlines will be reorganized into three airline groups. (ChinaOnline, 8 September)

China issues provisional regulations on registering Web site names
To standardize the registration of Web site names and protect the legitimate rights of site owners, the State Administration for Industry and Commerce has issued the "Provisional Regulations on the Registration of Web Site Names" and the rules for implementing them. These regulations went into force on Sept. 1.(ChinaOnline, 8 September)