China's tax revenue grows 26.7% in first quarter
Tax revenue jumped 26.7% year-on-year to RMB 355.9 billion in the first quarter of the year. Officials attributed the increase to economic growth and crackdowns on tax evasion. However, a weakening global economy could erode tax momentum. Import taxes and print taxes contributed much less to revenue growth than they did a year ago due to slowing growth of foreign trade and the dropping stock market. (Xinhua, 9 April)

Worldwide downturn expected to hurt export growth
Predictions on China's exports for this year are getting more pessimistic, as state officials now forecast a 5% growth, down from the year-on-year 10% growth predicted by the government a few months ago. The slowdown of the American economy remains the main reason for the expected downturn. Though a weak economy in Japan, China's biggest trade partner, and a global economical slowdown are likely to do harm as well. (www.cbiz.cn, 9 April)

Q1 industrial output up 11.2%
China's industrial output rose 11.2% year on year in the first quarter, stronger than the market had expected. Analysts said the figure indicated economic growth and exports might be better than expected in the first quarter despite the global slowdown and the faltering US economy. Exports of industrial products rose 14% year on year to RMB 323.9 billion in the first quarter. (SCMP, 10 April)

Vegetables and pesticides
Three quarters of the vegetables sold in China show pesticide residuals, according to a random test by a central government agency. However 71% of the food tested by the agency conformed to safety standards. (Guangming Daily, 10 April) What kind of safety standards are those anyway?

China world's 7th largest trade nation
According to WTO, China overtook Italy and the Netherlands in foreign trade, becoming the world's seventh largest trade partner last year. Its exports ranked 7th last year, up from 9th in 1999, while imports ranked 8th, up from 10th. (China Daily, 10 April)

Death penalty for faking medicine
The makers and sellers of fake medicine may face the death penalty according to state prosecutor's interpretation. The prosecutor's office also defined "standards" for fake and poor-quality products that would lead to a death sentence. (Beijing Morning Post, 10 April)

Foreign enterprise down; investment, capital up in 2000
By the end of 2000, there was a decrease in the number of foreign-invested enterprises compared with the end of 1999, but foreign investments, registered capital and foreign capital were up. A total of 203'200 FIEs remained in China by the end of the year, a decrease of 4.34% compared with the end of 1999. Foreign investments totaled USD 824.68 billion, up 5.92%; registered capital totaled USD 483.95 billion, up 4.40%; and foreign capital in place totaled USD 337.2 billion, up 6.48%. (ChinaOnline, 10 April)

China Telecom set for Hong Kong IPO in September
China Telecommunications Corp. is looking to be listed on Hong Kong's stock market in September of this year. However, the capital that will be raised from the listing is expected to fall far below the anticipated RMB 78 billion. (ChinaOnline, 10 April)

Investment diversification up, consumption weak
A February survey conducted by the People's Bank of China in 50 metropolitan areas has discovered increased levels of diversification in financial investments. Urban and township households with bank deposits as the main investment vehicle declined from 72% in the fourth quarter of 1999 to 63.6% in the first quarter of 2001. Meanwhile, households with stocks, treasury bonds and life insurance as their main financial investments increased in the past year. Nevertheless, consumption remains sluggish, as consumers expressed a flagging interest in making new purchases. (ChinaOnline, 10 April)

China is world's No. 1 fruit, vegetable producer
According to the Ministry of Agriculture, China has become the No. 1 vegetable and fruit producer in the world today, producing 13.3% of the fruit and 65.7% of the vegetables around the globe in 2000. (ChinaOnline, 10 April)

Banking sector fights illegal activities
China's financial authorities will intensify their efforts to crack down on illegal practices in the banking industry. The evasion of loan repayments tops the list of practices that banks need to fight against. Irregularities that need to be rectified also include illegal foreign exchange transactions, the making and trading of fake money, and the excessive use of bank loans for stock market speculation. A random investigation into 60'000 companies by the central bank found that half of them have evaded repayments. Central Bank Governor Dai Xianglong was reported to be urging creditor banks to sue loan repayment dodgers, even if they are connected to local governments. (China Daily, 11 April)

Beijing approves over 15'000 overseas-funded businesses
Beijing had approved 15'882 overseas-financed businesses by the end of last year. The contracts involve USD 32.13 billion of overseas investment. 158 of the world's top 500 companies have carried out investment projects in Beijing. Some 15 of these companies have set up headquarters, while some 45 multinationals have established 48 research and development centers in the city. (Xinhua, 11 April)

RMB 7 billion earmarked for industry upgrades
China will earmark RMB 7 billion in treasury bonds this year for overhauling factory technology so companies can compete better internationally. Projects to save water, energy and cap pollution will take priority. Updating safety equipment in big coalmines will also be a priority. (SCMP, 11 April)

Crackdown on Internet cafés
China has begun a 3 month effort to regulate Internet cafés. The government aims to block young people's access to pornography, online violence, online gambling and content that backs superstition. (Xinhua, 11 April)

China to take major steps to improve tourism
In an effort to improve the service quality, operational order and environmental problems of the tourist industry, the China National Tourism Administration will devote one year to resolving major problems in the tourism market. In addition, CNTA plans measures to punish companies and individuals that engage in unlicensed tour operations, or tour operations that go beyond their authorized business scope. These include, for example, companies that advertise and organize overseas tours, especially tours to places deviating from the supposed destinations, in the name of business inspection, overseas training and friendly exchange. (ChinaOnline, 11 April)

China building another world-class hydropower station
In the pattern of the Longtan Power Station and the Three Gorges Power Station, China is set to start building another world-class hydropower station before the end of this year-the Xiaowan Power Station at Lancang River in Yunnan province. (ChinaOnline, 11 April)

Hopes of higher pay shrinking
According to a survey conducted by the People's Bank of China, people's confidence on increasing their earnings in the future is shrinking. Instead of spending, more people are saving their money in banks and purchasing State treasury bonds and shares. According to the survey, because of the under-development of China's retirement insurance system, medicare system and unemployment insurance, people have good reason to save their money instead of spending it. (Business Weekly, 11 April)

Exports stronger than expected
China's exports grew a stronger than expected 14.7% to USD 59.27 billion in the first quarter, contradicting more bearish forecasts based on slowing economies in the United States and Japan. Imports rose by 17.3%, year on year, to USD 54.54 billion, for a trade surplus of USD4.73 billion, down 9.38% from a year earlier. Analysts attributed the export strength to the resilience and relative competitiveness of mainland products and continuing strong overseas demand. (SCMP, 12 April)

China to lift ban on Sino-foreign travel agencies in '01
China will completely lift the ban on Sino-foreign travel agencies; however, only Chinese partners will be allowed to have controlling rights in the joint ventures. They will still be required to mainly provide domestic travel services, while restrictions on where the businesses are to be located will be removed. (ChinaOnline, 12 April)

Mainland firms find IPO success on Hong Kong stock market
Seven mainland companies have gone public this year on Hong Kong's stock exchange, raising HKD 11.64 billion (USD 1.49 billion) or 91% of all the capital generated so far this year. Currently, the stock value of all the 119 mainland companies listed in Hong Kong accounts for 27% of the total stock market value. (ChinaOnline, 12 April)

Japan promises USD 21 billion in loans to China
During 2000, Japan loaned China more than USD 1.5 billion to fund environmental and economic development projects. By March 2001, the Japanese government had promised China JYN 2.67 trillion (USD 21.21 billion) in loans to fund 171 projects in China. With the exception of some projects for environmental projection and consulting services, procurement necessary for the projects can be made worldwide. (ChinaOnline, 12 April)

91% of software is pirated
A survey found that 91% of the software used on the mainland are pirated copies. This piracy has caused more than RMB 5 billion in losses to 5'000 mainland software developers. (Xinhua, April 13, 2001) The survey didn't indicate the losses caused to foreign developers.

Salary raise for civil servants
The finance minister said the government has prepared a RMB 80 billion budget to raise the salaries of 43 million civil servants by RMB 100 per month this year. He said competent workers also will receive an extra month's salary as a bonus. Premier Zhu Rongji said earlier the government will give raises to civil servants over the next three years. (CCTV, 13 April)

WTO schedule delays China entry
China is unlikely to enter the WTO before late this year at the earliest. The cause of the delay is less likely to be fallout from the US-China spy plane crisis than the trade body's agenda. A new session of negotiations with China was set for late February or early March. But, the talks never materialized further delaying the accession process. The WTO is concentrating on whether to launch another trade round when ministers meet in Qatar in November. (Reuters, 13 April)

Housing purchase process clarified
The Ministry of Construction unveiled a long-awaited set of regulations on standardized commercial house purchase procedures designed to provide house buyers with legal protection. The new regulations, which will take effect on June 1 this year, have set standards for housing quality, laid out purchasing procedures, and defined the responsibilities of developers, agents and buyers. (China Daily, 14 April)

China uses USD 7.98 billion of FDI in 1st Quarter
Contracted foreign direct investment in China during the first three months of the year totaled USD 15.99 billion, up 40% over the same period of last year, while actual FDI amounted to USD 7.98 billion (+ 10%). In total, China has approved 369'654 foreign-funded businesses with a contracted investment of RMB 692.7 billion. The foreign investment actually in use is USD 356.6 billion. (People's Daily, 15 April)

The Economist: A survey of Asian Business
In its April 7th issue (p. 64), The Economist published a highly interesting survey exploring "the prospects for achieving transparency, good corporate governance and sound regulation in developing East Asia". China, which lately has become the darling among Asian countries for foreign direct as well as portfolio investment, receives special attention in the survey.

Corrigendum:
Swiss Exports to China up 100% in January
Last week, CBB proudly heralded that Swiss Exports to China were up 100.1% in January from the same period of last year. Meanwhile, the State Secretariat for Economic Affairs informed us that their figures were wrong; they in fact compared the trade figures of January 2001 with those of 1999. 
Unfortunately, the correct figures are rather less exciting: Chinese imports to Switzerland rose to CHF 220.4 million (+8.4%), while Swiss exports to China rose to CHF 103.9 million (+29.7%). Total trade increased to CHF 324.3 million (+14.4%). Imports from Hongkong went up to CHF 63.0 million (+15.2%), while exports to Hongkong decreased to CHF 290.2 million (-3.9%). Imports from Taiwan went down to CHF 99.1 million (-16.7%), and exports to Taiwan went up to CHF 124.8 million (+32.4%).