China to launch open-ended fund in spite of scandals
The mainland will launch its first open-ended fund, apparently undaunted by an investigation that shows its fund industry plagued by manipulation. Huaan Fund Management, set up in 1998 and backed by several Shanghai financial institutions, has been mandated to launch the first open-ended fund. Huaan has signed a technical co-operation accord with Fleming Investment Management, a move that could lead to the establishment of a joint-venture fund-management company when China joins the WTO which would be the first to tap China's RMB 6.7 trillion domestic savings. The government expects a massive number of applications for sino-foreign joint venture fund-management companies once WTO membership is confirmed. (South China Morning Post, 26 March)

China's coal use decimating GDP
According to the State Environmental Protection Administration, China's use of coal as its main energy source is causing environmental problems that erode 10% of China's GDP. The country burns 27% of the world's coal consumption and is the only large country in the world to use coal as its main energy source. China is now the third-largest energy producing and the second largest energy-consuming nation in the world. (ChinaOnline, 26 March)

Beijing foreign-funded workers earn more than domestic counterparts
Beijing employees working in foreign-funded enterprises received almost RMB 4'000 more in monthly salary than their counterparts in domestic enterprises,. The monthly per capita income of the 2.66 million employees in domestic enterprises was RMB 1'920 yuan, while the 370'000 taxpayers working for foreign-funded enterprises earned an average of RMB 5'630 per month. (ChinaOnline, 26 March)

Environmental protection business forecast to grow at 15% annually
Businesses that promote the protection of China's environment are expected to grow at 15% annually over the next five years, according to the State Environmental Protection Administration. (China Daily, March 27)

Industrial efficiency improves in first two months
The index measuring industry's economic efficiency was 106.1 points in the first two months of 2001, up 8.1 points over the same period last year, according to the National Bureau of Statistics. The increase was largely attributed to rises in enterprise sales. Sales revenues rose 15% over January and February of 2000, but the growth rate was 6.2 percentage points lower. (China News Service March 27)

China Federation of Machinery Industry launched
The China Federation of Machinery Industry was officially inaugurated, one month after the State Administration of Machinery Industry was axed as part of the government's program to streamline administration. The federation is under the leadership of the State Economic and Trade Commission and currently has 49 industrial associations and 23 intermediate services organizations as its members. The federation will play the role of an adviser to the government and enterprises and a bridge between the two in order to promote the development of China's machine-building industry. (Xinhua, 27 March)

U.S. home appliance makers foundering in China
In spite of their advanced technologies, experienced management and access to vast pools of capital, U.S. home-appliance dynamos General Electric Co. (GE), Whirlpool Corp. and Maytag Corp. found China, which had lured them with promises of cheap labor and a gigantic market, to be a very difficult business environment. Compared with the market share enjoyed by manufacturers of home appliances from Japan, South Korea, Europe and China, the U.S. manufacturers have not done well. (ChinaOnline, 27 March)

Shanghai Stock Exchange suspends Zhengzhou Baiwen listing
The Shanghai Stock Exchange has suspended the listing of the loss-incurring Zhengzhou Baiwen Co. This marks the first suspension case since the China Securities Regulatory Commission unveiled its Implementation Measures for Suspending and Terminating the Listing of Loss-incurring Listed Companies earlier this year. (ChinaOnline, 27 March)

Delphi aims to expand auto parts business
Delphi, the world's largest auto parts manufacturer, aims to build a strong presence in the Chinese after-sales market. Delphi has 15 joint ventures and wholly-owned companies in China and is one of the major suppliers of local vehicle manufacturers, such as Shanghai General Motors, Shanghai Volkswagen, FAW (First Automotive Works) Volkswagen and Dongfeng Citroen. (Business Weekly, 27 March)

Supachai clouds WTO deadline
China's WTO entry will be further delayed to the end of the year at best, according to Supachai Panitchpakdi, who will head the agency next year. "I would have thought that people would be enthusiastic to welcome China to the WTO before the June deadline for the expiration of normal trading relations [with the U.S.], but it seems a lot of countries do not care very much," said Mr. Supachai. (South China Morning Post, 27 March)

Cabdrivers trash manufacturer exhibit in Henan
70 angry cabdrivers wrecked an advertising display for the Ingel sedan, a model used for taxi services in Henan province taxis. "We tore down their stand to prevent them from cheating more consumers," one taxi driver told reporters. (ChinaOnline, 27 March)

Xinhua analysis: US economic slowdown has limited impact on Chinese exports
In an news release dated 28 March, Xinhua cites U.S. business representatives and a Chinese economist with the Development Research Center under the Chinese government, who insist that the U.S. economy remains in good shape and that even if there were a recession in the U.S., China's exports to the US would remain basically unaffected. Articles like this reflect above all the Chinese Government's concern with the strength of the U.S. economy. China's exports to the US account for about one-third of its total and are mainly cheap labor-intensive products such as textiles, apparel, shoes, toys and umbrellas. Official figures showed that China's total exports grew 14.5% year-on-year in the first two months this year, compared to 41.2% in the same period of last year. (Embassy of Switzerland, 28 March)

Motorola leads foreign investors in development of Western China
Motorola announced that it will add USD 100 million worth of investment in southwest China's Sichuan Province to set up a major manufacturing plant. This is Motorola's fourth additional investment in the western area of China in two years. Motorola, one of the first multinational investors in western China, has so far invested a total of USD 4 million in Sichuan in setting up a joint-venture, a research and development center, a software development center and a branch company. (Xinhua, 28 March)

Beijing raps 12 firms in fraud blitz
In the latest sign of a crackdown on fraud China has censured 12 companies for failing to abide by rules to notify authorities of major transactions. All the companies (6 listed in Shenzhen, 6 in Shanghai) have A shares, which are not available to foreign investors. The crackdown is an indication of Beijing's determination to establish better-regulated stock and financial markets amid growing concerns about fraud. (SCMP, 28 March)

World Bank funds transport project in North China
The World Bank approved a USD 100 million loan for an urban transport project in the city of Shijiazhuang, Hebei Province. The project is aimed at building an efficient and environmentally sustainable urban transport system in the city by reducing travel time and vehicle operating costs, improving road safety and reducing auto emissions. The total investment of the project is estimated at USD 286 million. (Xinhua, 28 March)

Beijing to close all money-losing SOEs before '03
The Beijing municipal government has announced that all large and medium-size state-owned enterprises suffering prolonged losses will be closed by the end of 2002. A total of 198 SOEs already have filed for bankruptcy in Beijing. 30 SOEs have sustained consecutive losses for the last three years. Most of the money-losing SOEs were involved in automobile, machinery, textile and the farm-equipment industries. (ChinaOnline, 28 March)

Ministry of Finance issues more than RMB 20 billion in treasury bonds
China's Ministry of Finance will begin issuing RMB 20 billion worth of treasury bonds. This issue will be for 10-year treasury bonds with a floating interest rate. The interest will be paid annually. The rate for the first year is 2.82%. (ChinaOnline, 28 March)

China won't open radio, film, TV to foreign investment after WTO entry
According to China's State Administration of Radio, Film & Television the government will not open China's radio and television network to foreign or non-governmental investment, even after China's entry into WTO. (ChinaOnline, 28 March)

1.26 billion people
According to the National Bureau of Statistics, China now counts 1.26 billion people which is an increase of 132.15 million or 11.66% over 1990, with an average annual growth rate of 1.07 percent. However, the official figure might be compromised, as people with more than the allowed number of children or those living in areas where they are not permitted to live had not co-operated with the latest census for fear of punishment. (ChinaOnline, 28 March)

Cross-Strait trade drops 23.1% in January
Trade between Taiwan and the mainland plunged 23.1% to USD 1.95 billion during January compared to the same period in 2000. According to Taiwan's Ministry of Economic Affairs, the drop is attributed to the Chinese Spring Festival holiday. (ChinaOnline, 29 March)

World Bank: China to remain east Asia's fastest growing economy
The World Bank expects China to remain the fastest growing economy among east Asian countries, with its GDP growth projected at 7.3% in the period leading up to the country's entry into the WTO. In view of the slowdown in the US economy, the Bank predicts for China's exports to grow by 10-12% in 2001, down from last year's 28%. (Xinhua, 29 March)

Huge Wal-Mart to open in Tianjin
Wal-Mart Stores Inc. intends to build Tianjin's largest supermarket in terms of business area, if things go as planned. (ChinaOnline, 29 March)

Beijing's 5th subway line partially foreign funded
Beijing's fifth subway line will use foreign funds to overcome a local money shortage. Five Canadian banks, will offer RMB 3 billion in loans. A Sino-foreign joint venture will pay RMB 4 billion for construction. China Construction Bank lend RMB 5 billion to pay the balance. The 27.7-kilometre line will be completed in five years. (China Central TV, 29 March)

Three foreign groups on shortlist vie for USD 300m treatment project
Three overseas consortiums have been shortlisted to build and operate a USD 300 million water intake and treatment facility in Beijing - the biggest such turnkey project with foreign participation. The project marks a big step forward in China's move to allow more foreign participation in its water supply sector and in other utilities sectors. The three final bidders are Mitsubishi Anglian consortium, Beijing Compagnie Generale Des Eaux-Marubeni, which is led by France's Vivendi Universal and Japan's Marubeni, and Britain's Thames Water. (SCMP, 29 March)

Beijing to loosen exchange rate
According to central bank governor Dai Xianglong, Beijing will adopt a more flexible currency-exchange rate after its entry to the WTO. The People's Bank of China, which intervenes in the market to ensure the yuan trades within a thin band, kept the currency between 8.277 and 8.28 to the US dollar for more than three years after the Asian financial crisis. Since April last year the bank has allowed the yuan to close outside the thin range more than 40 times, though only twice outside the weak end. (SCMP, 29 March)

Government to reduce unemployment among farmers
The government plans to shift 40 million labourers from agriculture to other trades in the next five years by retraining them, giving them loans and relocating them. The mainland has about 150 million extra farm labourers, and the figure is increasing. (People's Daily, 30 March)

Bond funds to upgrade SOEs
At least RMB 7 billion, raised through treasury bond issues this year, will be earmarked for technological upgrading in State-owned enterprises. The industries such funds will be channeled to include metallurgy, petrochemicals, textiles and machinery. (China Daily, 31 March)