China's exports up 13.2%
China's total exports from January to April this year reached USD 81.76 billion, up 13.2 % from the same period last year. Figures released by the General Administration of Customs Tuesday show that the foreign trade volume of the country in the first four months of the year added up to USD 158.13 billion, up 15.4%. The value of imports during the period was USD 76.37 billion, up 17.8%. The exports of overseas-invested companies, private companies and collectively-owned companies grew strongly. Meanwhile, China's trade with its major partners was vigorous. China's imports from the United States, the European Union, ASEAN (Association of Southeast Asian Nations) and Russia all increased by more than 20%. (Xinhua, 15 May)

Economy enjoying 7% growth
The Chinese economy appeared on track to enjoy the predicted 7% growth rate this year, indicated statistics on the first third of 2001. The National Bureau of Statistics also published its monthly report on the performance of the industrial sector. It said China's industrial production grew 11.3% in the first four months on a year-on-year basis to reach RMB 813.4 billion. Heavy industries continued to record faster growth than the light industries as they have done in the past three years, indicating that the infrastructure construction programme launched by the government to stimulate the economy is still affecting the industrial sector. (China Daily, 15 May)

Unicom signs CDMA contracts
China United Telecommunications (China Unicom group) has signed contracts worth RMB 12.1 billion with 10 suppliers for equipment to build its code division multiple access (CDMA) mobile network. They include Sino-foreign joint ventures Qingdao Lucent, Hangzhou Motorola, Guangdong Nortel Telecommunications Equipment, Nanjing Ericsson Panda Communications and Shanghai Bell. Domestic winners include Shenzhen Zhongxin Telecom, Datang Telecom Technology, Jinpeng Group, Oriental Communication and Huawei Technologies. China Unicom group has budgeted about RMB 20 billion for its first-phase CDMA network development expected to be completed by the end of the year. It will be able to serve up to 13.3 million subscribers. The new Unicom network aims to capture about a quarter of China's mobile users by 2003. (SCMP, 15 May)

Foreign-brand fridge make up more than 28% of domestic market
Foreign-brand refrigerators are gaining market share in China, but domestic brand Haier Group remains No. 1. Led by Electrolux, Siemens AG and Samsung, foreign brands have acquired a 28.1% market share in China, according to a recent survey. This figure is the highest since 1999 when their collective market share hit a peak of 21%. (ChinaOnline, 15 May)

Low CPI tells weak demand
China's consumption remained robust in April but price growth was almost flat over the same period of last year, the National Bureau of Statistics said. Retail sales in April grew 9.7 % on a year-on-year basis to reach RMB 282 billion. The growth rate was lower than that of the first three months, which stood at 10.3%. Consumer Price Index (CPI) in April advanced a marginal 0.3%, indicating that domestic demand was still relatively weak. (China Daily, 16 May)

Auto industry's net profits drop 4.5% in 2000
China's automobile industry showed significant dips in profits from 1999 to 2000, latest data reveal. According to the annual reports published by nearly 40 different listed auto companies in China, average core auto business revenue, operating profits and net profits for 2000 dropped respectively by 3.3%, 32.9% and 4.5%. Of all auto industry profits for 2000, operating profits made up 78%, down 7% from 1999. Earnings from core businesses consequently took the lead and accounted for roughly 80% of the gross profits. Meanwhile, non-core business revenues such as investment returns and subsidy incomes took up a larger share in the auto industry's gross profits in 2000. (ChinaOnline, 16 May)

China plans to cut half of all agricultural taxes
To prepare China's agriculture sector for looming competition following China's accession to the World Trade Organisation (WTO), the central government suggested recently that a rehabilitation policy be implemented while the government tries to step up rural tax reform and regulate distribution systems in rural areas. The policy includes repealing or cutting half of all agriculture taxes, which will help to reduce farmers' burdens in five years, fostering a foundation for agricultural development and creating a more relaxed environment for the healthy growth of the agriculture sector. (ChinaOnline, 16 May)

FDI soars by 12.4% in through April
The first four months of the year saw foreign direct investment in the mainland rise 12.43% year on year, to USD 10.95 billion. The Ministry of Foreign Trade and Economic Co-operation said that in the same period contracted foreign investment, an indicator of the future trend, rose 38.28% to US$20.24 billion. (SCMP, 16 May)

Syngenta takes large stake in China's largest agricultural chemical JV
Syngenta, a Swiss global leader in crop protection and seeds, is to invest more than USD 85 million in China's largest agricultural chemical joint venture. The project will focus on producing the popular Gramoxone weedkiller. Presently, there are more than 2,000 agricultural chemical enterprises in China, but their total annual sales are a mere USD 4 billion to USD 5 billion, which is less than Syngenta's sales in one year. (ChinaOnline, 17 May)

China's foreign exchange deposits up by USD 2.6 billion in April
The People's Bank of China (PBOC) announced Thursday that China's foreign exchange deposits increased by USD 2.6 billion in April to reach USD 131.85 billion, up 20.6% from the same period last year. The outstanding corporate deposits in foreign exchange was USD 47.5 billion, up 16.7% from the same period last year. The outstanding residents' deposits in foreign exchange was USD 74.55 billion, up 22.9% from the same period last year. 
(Xinhua, 17 May)

Current money supply moderate
The People's Bank of China, the country's central bank, announced its Quarterly Report on Monetary Policy for 2001. According to the report, money supply could keep pace with economic growth, but currency circulation saw a little decrease. At the same time, banking loans saw a reasonable increase with its composition being adjusted. By the end of the first quarter, various loans in financial institutions rose by 13.9%, almost the same as against the same period, and the end of last year as well. In the first three months, resident housing loan, student loan and individual consumption loan accounted for 23%, infrastructure construction and technological innovation took up 18% and agricultural loan by 12%. Currency interest rates remain stable. (People's Daily, 17 May)

Investment picks up in first four months
China's Investment in fixed assets surged 16.5% year on year during January to April, according to the National Bureau of Statistics (NBS). Investment in fixed assets totalled RMB 423.6 billion in the first four months of the year. The growth rate was 7.2% higher than in the same period of last year. (Xinhua, 17 May)

Car sales up on strong private purchases
Mainland car sales went up by almost 25% in the first three months of the year, to 146,543 vehicles, because of demand from private buyers who are turning to more expensive cars. This is the biggest single-quarter spike in six years, the State Information Centre Said. It said half the buyers were individuals, rather than companies or government agencies, which used to be the majority clients. Buyers favoured middle-end cars such as Honda's Accords, Volkswagen Passats, Audis and GM Buicks. (SCMP, 17 May)

Nation issues bonds overseas
China will issue USD 1.55 billion in sovereign bonds onto the European market in a return to the international capital market after more than two years' absence. According to Morgan Stanley, one of the managers of the issue, the issue has been released as USD 1 billion in 10-year US dollar bonds and USD 550 million in five-year bonds denominated in the Euro. The dollar bonds were 3.7 times oversubscribed. Both Chinese officials and market players said China is not issuing the bonds just to raise money. Rather, the purpose is to set a benchmark for China's corporate borrowers. The previous such bond issue occurred in December 1998. (China Daily, 18 May)

Austrian Central Bank opens Beijing branch
Raiffeisen Zentralbank Osterreich (Austrian Central Bank) opened its branch in Beijing May 17, becoming the 18th foreign-funded bank to establish a branch in China. It is also the only bank from Austria or the central and eastern European region to have a branch in China. (ChinaOnline, 18 May)

Shanghai simplifies procedures for merger and acquisition
Shanghai has simplified the administrative approval procedures for foreign investment in the form of merger and acquisition. All the merger and acquisition projects that conform to the government's industrial policy and involve transaction values less than USD 10 million could be dealt with through a "fast channel". Under the new procedure, approval for property rights transactions and foreign investment will be treated as one. Approval for corporate constitution and other items shall also be simplified. 
(Xinhua, 20 May)