AOL to join Legend for mainland venture
Internet service provider America Online will enter the mainland's vast computer and Internet market with a planned USD 200 million joint venture with China's largest computer-maker, Legend Holdings. It is understood the two companies each will contribute USD 100 million to form the venture. Legend will own a 52% stake. The new company will develop interactive services for Chinese consumers. (SCMP, 04 June)

Group lists 6 problems said to be disrupting China's market order
Data collected by the National Leading Group for Rectifying and Regulating Market Economic Order show that six major problems exist in China's market economic system. The six problems are:
1. Regional production and marketing of fake and substandard goods
2. Industrial monopoly and regional protectionism
3. Unregulated trading activities
4. Illegal multilevel marketing
5. Behind-the-scenes operation and deception in the construction market
6. Tax evasion by violating financial discipline
(ChinaOnline, 5 June)

China to reform government financial-management system
Sources from the Ministry of Finance have revealed plans to reform the financial-management system. According to the reform measure, a centralized government budget will replace the current system of separate budgets by different government agencies, and all financial revenue will go into centralised state coffers. No longer will government agencies be allowed to possess their own separate accounts; the central state budget will take in all revenue and cover all expenditures. The measure is believed to be able to significantly increase the transparency of government revenue and spending and curb corruption at its source. (ChinaOnline, 6 June)

China's first software copyright registration agency established in Beijing
The first software copyright registration agency in China, Zhongguancun High-Tech Park Software Copyright Registration Agency, has opened for business. The facility has been designated to propagandise the Copyright Law and the Computer Software Protection Rules. (ChinaOnline, 6 June)

Massive oil scheme in the pipeline
PetroChina, the country's largest oil company, said that it has invited the world's top three oil conglomerates, BP, Exxon Mobil and the Royal Dutch/Shell Group for negotiations to participate in the USD 18.1 billion west-east gas transmission project. The project, which aims to pipe more than 12 billion cubic metres of gas annually from Xinjiang's Tarim Basin to the energy-starved Shanghai and Yangtze River Delta by 2005, is regarded as the centrepiece of China's attempt to develop its economically backward but resource-rich western regions and to better protect the environment in eastern regions. (China Daily, 6 June)

Unicom in KDDI defensive alliance
China and Japan's second largest telecommunications operators China Unicom Group and KDDI last night signed a pact to enter a comprehensive alliance. The agreement will aid China Unicom Group in its development of a code division multiple access (CDMA) wireless network. KDDI was looking to establish a strong foothold in China, the world's second largest market for mobile phone services after the United States. (SCMP, 6 June)

World Bank approves USD 200 million loan to China
The World Bank approved on Tuesday a loan of USD 200 million for a highway project in Jiangxi Province. The estimated total project cost of USD 535.7 million will be financed by the World Bank's loan, with the Chinese government financing the remaining costs. (China Daily, 6 June)

Tourism industry is 28.6 million strong, foreign exchange earnings up 10%
The number of tourist arrivals and the foreign exchange they generated during the first four months of 2001 has increased significantly over the same period last year. There were a total of 28.62 million overseas tourist arrivals, a 7.47% increase that continued the first quarter's upward trend. Additionally, overseas tourism generated USD 5.54 billion foreign exchange earnings for the first four months of 2001. (ChinaOnline, 7 June)

First long-term T bonds issued
China issued the country's first batch of long-term treasury bonds. The Ministry of Finance started issuing RMB 12 billion worth of 15-year fixed-interest bonds to institutional investors on 9 June. The bonds, which carry an annual interest rate of 4.69%, will be traded on the inter-bank bond market after the issuance is completed on June 12. Analyst said it is a signal that the Chinese Government has started to diversify its bond varieties. The issuance will be helpful in alleviating the debt burden and improving the country's debt structure. (China Daily, 7 June)

Beijing spends USD 1.4 billion on environmental protection last year
According to the 2000 Report on the State of Environment in Beijing, released by the Beijing Environmental Protection Bureau (BJEPB), the city spent USD 1.4 billion on protecting the environment in 2000. It also accounted for 4.7% of Beijing's gross domestic product for 2000, or a 15 % surge from 1999. (ChinaOnline, 8 June)

Fiat sets up auto engine plant in Shanghai
Chinese citizens will be able to enter as tourists into four additional foreign countries-Vietnam, Burma, Cambodia and Brunei from June 10, 2001. The China National Tourism Administration announced on May 29 that China had signed agreements with the four countries. Until now, Chinese citizens could join overseas tour groups to visit 14 countries and regions in the world. (ChinaOnline, 1 June)

Chicken industry dealt blow by Japanese curbs
Japan's temporary curb on Chinese poultry imports has dealt a heavy blow to the mainland's chicken farms, already reeling from similar moves by Seoul, Manila, Macau and Hong Kong. On 7 June, Japan said it was slapping a temporary curb on China's poultry due to bird-flu concerns, a ban likely to last until the safety of Chinese poultry used in food can be verified. Days before Japan's ban, South Korea barred imports of frozen poultry from China because it had discovered the avian bird flu in imported Chinese geese. China's Ministry of Foreign Trade and Economic Cooperation voiced strong opposition to the ban imposed by the Republic of Korea and Japan and said that the ban was imposed without scientific or factual proof. (SCMP, 9 June)

China, US reported riding on smooth path to WTO
China and the United States announced an agreement on farm subsidies and other remaining issues blocking China's bid to join the WTO. The agreement reached in Shanghai during a meeting of regional economic ministers this week clears the way for Washington to support China's bid at a meeting of WTO members June 28. A statement released by the US Embassy in Beijing said, "China and the US agree that we should now work together in Geneva to complete China's WTO accession." (China Daily, 10 June)