China Telecom faces reform further
China Telecom may soon be split into several parts to help sharpen the competition in the nation's telecom industry, according to published reports and sources close to the Ministry of Information Industry (MII). One possible plan, based on the AT&T break-up in the US in the early 1980s, would see China Telecom split in three. The new entities would each focus on a specific aspect, be it local fixed-line telecom, long distance calls or data transmission businesses. (China Daily, 21 May)

Foreign loans up 24% in '00
New statistics released by the Bank for International Settlements (BIS) show that foreign banks' lending to China totaled USD 58.29 billion by the end of 2000, up 24% from 1999. One-year loans accounted for only one-third of the total foreign bank lending to China. The small percentage of short-term loans in relation to the total loan amount suggested that the economy is healthy, which bolstered foreign banks' confidence in China. (ChinaOnline, 21 May)

China lifts control over car prices
The State Development Planning Commission said it had relaxed pricing controls on domestic cars and allowed manufacturers full latitude within the system. The relaxation was a bold step towards promoting domestic market competition and car sales. Before this new relaxation, Chinese car manufacturers were only permitted to adjust prices by 10% based on benchmark levels set by the commission. (China Daily, 22 May)

Machinery, electronics exports picking up
China exported machinery and electronics worth USD 26.22 billion during the first quarter, up 24.7% from the same time last year, according to statistics from the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME). The numbers also showed that machinery and electronics make up 44.2% of the country's total exports. (ChinaOnline, 22 May)

Construction Bank, Deutsche Bank sign letter of intent to cooperate on credit services
The China Construction Bank and Deutsche Bank signed "The CCB-Deutsche Bank Letter of Intent for Co-operation" in Beijing. The two sides will start substantive co-operation in credit services. Under the agreement, the two banks will strengthen co-operation in the areas of information exchange of customers' accounts, client credit services, entrusted loans and overseas customer services. (ChinaOnline, 22 May)

Siemens sets up new company in China
Siemens Productions and Logistics Systems China Ltd. was set up in Beijing. The new company will continue to play a large role in electronics assembly, postal automation, logistics and factory automation, and intelligent in-house transportation. Siemens operations in logistics and production in China began in the early 1980s. To date, Siemens long-term investment in China has exceeded 5 billion Euros. It has more than 50 companies, 28 regional offices and 25,000 employees in China. (Xinhua, 22 May)

PetroChina in search for new foreign partner
PetroChina is seeking a new foreign partner for a USD 1.3 billion petrochemical project after failing to reach an agreement with Chevron Phillips Chemical. PetroChina wanted the plant in the western province of Gansu, with production capacity of 800,000 tones of ethylene per year. A PetroChina official said the Chinese company was contacting other foreign firms about participating in the project and would consider going it alone if a new foreign partner could not be found. (SCMP, 22 May)

China lowers foreign currency deposit rates
The People's Bank of China announced that the deposit interest rates of US dollars, Hong Kong dollars and Swiss Francs in Chinese commercial banks will be lowered as of May 23. According to the announcement, the interest rates for one-year term US dollars, Hong Kong dollars and Swiss Francs are lowered to 2.6875%, 3% and 1.6875%, respectively, down 0.3125%, 0.125% and 0.3125% points. (Xinhua, 23 May)

Overseas accountant firms win licenses for China services
Arthur Andersen & Co., Deloitte Touche Tohmatsu, Ernst & Whinney and two other overseas accounting firms were granted temporary licenses to act as auditors for financially listed firms by Chinese authorities. The licenses issued by the China Securities Regulatory Commission and the Ministry of Finance have a validity of one year. (Xinhua, 23 May)

EU to lift five-year import ban on chicken
The European Union (EU) is to lift its five-year ban on chicken imports from China. The EU initiated the ban in August 1996 because of low quality and bad sanitary conditions of chickens imported from China. Before the imposition of the ban, China sold about 50,000 tons of chickens to the EU each year. (China Daily, 23 May)

Property market still booming
China's real estate market is still on the up, growing more quickly last month than the previous month. The State Real Estate Index,which has figures from all over the country, registered 106.88 points in April, 0.73 points higher than March. Meanwhile, the amount of unoccupied housing and housing prices also saw continued growth. ?China Daily, 24 May)

Eximbank issues USD 976 million financial bonds
The Export and Import Bank of China (Eximbank) issued USD 976 million worth of 10-year floating rate financial bonds on Wednesday. This is the third issuing of financial bonds by the Eximbank, and it is also the first long-term issue for this year. In 2001 the bank plans to issue a total of RMB 45.5 billion in financial bonds. (Xinhua, 23 May)

1st Quarter bogus merchandise up more than 64% from '00
Sources at the State Administration for Industry and Commerce (SAIC) said that authorities uncovered 15,895 cases of fake manufactured goods during the first quarter of 2001, up 64.68% over the same period in 2000. Authorities imposed a total of RMB 38.49 million in fines on violators, and confiscation were up 75.88% over the same period a year earlier. (ChinaOnline, 23 May)

Year-end goal for OTC debt market
China plans to shore up the interbank debt market this year by launching over-the-counter (OTC) trading and adding new instruments. A long-awaited OTC debt market is expected to start trading in the third quarter. China sees the development of its debt market as a key means to reduce the central government's financial burden and to diversify financial risks. (SCMP, 24 May)

Bureau records more profit, less loss
China's industrial companies are making more profits and fewer losses, although the profit growth rate has slowed, according to the National Bureau of Statistics. Profits reaped by the industrial sector surged by 35.1% to RMB 123 billion during the first four months of the year over the same period in 2000. The bureau said loss-making enterprises recorded a loss of RMB 46 billion, down 13.8% over the same period last year. (China Daily, 24 May)

Tianjin ups amount of foreign investment in Joint Ventures
Over the last six years, the city of Tianjin has relaxed the rules on how much of a joint venture may be owned by foreign investors-and the ratio went from the customary maximum of 49 % all the way up to 75%. The more liberal ratios have allowed foreign investors in 760 different joint ventures to increase investments by more than RMB 33 trillion. (ChinaOnline, 24 May)

Several new natural gas power plants to be built
China will build a group of natural gas power plants during the 10th Five-Year Plan (2001 to 2005) with a total capacity of 7,930 megawatts (MW). The plants will mainly be located in Shanghai as well as in Jiangsu, Zhejiang and Henan provinces. The annual natural gas consumption will be 4.5 billion cubic meters, with approximately 40% of the gas supplied by the planned West-East Natural Gas Transport Project. (ChinaOnline, 25 May)

Prices of industrial products drop in April
The prices of industrial products in China dropped slightly in April, ending the upward trend of the past 15 months. The National Bureau of Statistics said that it was the first drop in industrial prices since the start of the rally in January 2000. The NBS said that the prices of consumer goods continued to be in a decline trend in April, dropping 1.2% from one year ago. Prices of durable consumer goods dropped 4.4% in the month, while prices of apparels and daily necessities dropped 0.5% and 1.5% respectively. (Xinhua, 25 May)