Insurance industry sees 34% profit surge in 1Q
According to a recent report by the China Insurance Regulatory Commission, China's insurance industry saw in the first three months of 2001 total income of RMB 44.47 billion 34% up from the same period in 2000. Of the amount, life insurance made up RMB 27.26 billion, up 48.5 %. Property insurance also reported an 18.62% increase, accounting for RMB 17.21 billion. (ChinaOnline, 30 April)

China world's top garment producer
China-made garments now account for one fifth of the global market share, the largest single rate in the world. China's garment production rose to 11.6 billion pieces in 2000 from 670 million in 1978, an increase of 17 times or up 14% annually. The country exported garments worth USD 36.1 billion in 2000. (Xinhua, 30 April)

Consumer confidence rising in China
According to a report released by China's National Bureau of Statistics, Chinese in general are making more money, are satisfied with China's economic performance and are feeling optimistic about its growth in the years to come. On the other hand, low-level employees at enterprises and work units, individuals who have retired or left their jobs, and laid-off or unemployed people were relatively more pessimistic about the future of their earnings. (ChinaOnline, 1 May)

China holds key to stability
According to the Hong Kong-based Political and Economic Risk Consultancy, China holds the key to Asian economic stability amid the United States-led global slowdown and Japan's decade-long economic stagnation. While a US slowdown would no doubt cast gloom over Asia, any moves by China to devalue the yuan to protect its export competitiveness, particularly with the yen and other Asian currencies falling sharply against the dollar, would have severe repercussions for financial systems in the region. (AFP, 1 May)

Foreign insurers to be regulated
A new foreign insurance company management provision will make it clearer for foreign insurers to apply for operational licences in China. The China Insurance Regulatory Commission, the industry watchdog, mapped out the new provision last year and submitted it to the State Council for approval. (Business Weekly, 1 May)

State Council issues regulations to ban local protectionism
The State Council released its Regulations on Banning Regional Blockades in Market Economic Activities. According to the regulations, neither entities nor individuals are allowed to prevent non-local products and construction-related services from entering local markets, nor are they allowed to encourage or harbor local protectionists or erode fair competition in any form. (ChinaOnline, 2 May)

Move to stimulate reinsurance
The China Insurance Regulatory Commission is pondering approving several new reinsurance companies this year to encourage the development of the reinsurance market in China. Currently China has only one specialized reinsurer, the China Reinsurance Company, and the situation is hampering the further growth of the sector. Industry sources said it was likely that some foreign reinsurers would be allowed into China's market. China's Insurance Law demands that all insurance companies in China must reinsure 20% of their businesses with the China Reinsurance Company, but many insurers have managed to evade the regulation. (China Daily, 2 May)

China's employment numbers climb in 2000
According to a joint report on China's labor and social security development released by the Ministry of Labor and Social Security and the National Bureau of Statistics, there were 711.5 million employed people nationwide by the end of 2000, 5.64 million more than a year ago. Of that total, 50%, or 355.75 million, were agricultural workers; 22.5%, or 160.09 million, were industrial-sector workers; and 27.5%, or 195.66 million, were service-sector workers. (ChinaOnline, 2 May)

Shanghai to host World Expo 2010?
China has applied to host the World Expo 2010. The International Exposition Bureau will decide late next year which city will host this event. China is applying on behalf of Shanghai, which has four possible competitors, including Mexico City. (Jiefang Daily, 3 May)

Private home ownership taking off in China
In a report from Shanghai, the Far Eastern Economic Review describes the economic and social implications of the fast expanding private home ownership in Chinese cities. Easy mortgage terms, generous tax credits and employer subsidies pushed private home purchases up 52% in 2000, to RMB 284 billion. In Shanghai, China's wealthiest city, officials estimate that about 60% of all families have bought their own homes. The China Real Estate Association estimates that the housing industry contributed at least 1.5 percentage points to China's 8% GDP growth last year. Bank loans to consumers soared 137% last year to RMB 337 billion; most of the loans were mortgages. (Far Eastern Economic Review, 3 May)

Chinese economy kept on right track
The Chinese economy will keep on the right track in spite of the fact that the current economic slowdown in the United States is affecting China's foreign trade, not only with the U.S. but also with other major trade partners such as Southeast Asian economies and in particular Hong Kong, the second biggest source of the mainland's trade surplus next to America. Despite the tough prospects for trade, many believe that the other two components of GDP, investment and consumption, are sound enough to sustain the healthy growth of the Chinese economy. (China Daily, 5 May)