Logistics: the post-WTO headache
A report of McKinsey & Co. claims that transportation bottlenecks in China might easily outflank the financial assets of China's accession into the WTO, as shipping products in China would be 40-50% more expensive than in the United States. Poor infrastructure, restriction for foreign entrance in logistics and transportation and inefficient freight operators are some of the barriers separating foreign companies from the 1.2 billion Chinese consumers. (Wall Street Journal, 2 July)

China's listed SOEs raise nearly RMB 500 billion
Since 1998, when the Chinese government allowed overseas listings of eligible state-owned enterprises, Chinese SOEs listed on domestic and foreign stock exchanges have raised nearly RMB 500 billion. (ChinaOnline, 2 July)

Southeast Asian investment slows; money heading to China instead
Southeast Asian countries are watching investment leave the region and head to China. The amount of private capital flowing into Indonesia, Malaysia and Thailand has declined in the past three years, and these countries fear further decreases this year. In contrast, it is estimated that because of China's cheap labor and large domestic consumer market, the country expects to bring in nearly USD 40 billion in new foreign investment this year. The member nations of the ASEAN, on the other hand, will only welcome about half that amount (ChinaOnline, 2 July)

Foreign exchange deposits up by 21.2%
In May, the amount of foreign exchange deposited in Chinese banks was up 21.2% from the same period last year to USD 134.67 billion. Companies accounted for USD 49.63 billion of the total, up 20.9% from the same time last year while individual accounts stood at USD 75.64 billion, up 22.2%. (China Central TV, 3 July)

Philips shifts cell-phone production to China
Philips Electronics Group and China Electronics Corp. jointly announced to shift the entire production capability of Philips cell-phones to Philips Sangda Consumer Telecommunications Ltd., a joint venture located in Shenzhen. Philips currently has two cell-phone factories, one in France and one in Shenzhen. (ChinaOnline, 3 July)

China plans 6-million-ton oil stockpile by 2005
China plans to launch a State strategic oil stockpile of 6 million tons by 2005 to cushion its exposure to the volatile oil market. China's demand for crude oil is expected to reach 296 million tons by 2010, but its production will only be 170 million tons. (China Daily, 3 July)

Price wars bruise China's engineering firms
Last year overseas engineering contracts earned China USD 8.38 billion, making the nation the 10th largest overseas engineering contractor in the world. However, intense competition between Chinese firms has forced down prices for overseas contracts to unsustainable low levels. By the end of last year, more than 1'900 Chinese enterprises had obtained the right to contract engineering projects overseas. (Business Weekly, 3 July)

Nissan in talks with Dongfeng to produce passenger cars in China
Japan's second-biggest auto-maker, Nissan Motor Co, is in talks with China's Dongfeng Automotive Group, one of China's top three auto-makers, on a joint venture to produce subcompact cars. (China Daily, 4 July)

Siemens to invest USD 310 million in Asia
Siemens Information and Communications Mobile Group will invest USD 310 million, mostly in China, to expand research and development centers and mobile telephone production. The company will spend USD 250 million to expand three research and development centers in Beijing, Shanghai and Singapore and USD 60 million to boost mobile phone production in Shanghai to 14 million units a year. (Reuters, 4 July)

Development of public transport systems encouraged
Mainland cities with more than one million people are being encouraged by the government to build subway or light rail systems to combat traffic congestion. These are part of the mainland's 10th five-year plan, which covers the 2001-to-2005 period. Only four of China's 40 large cities have subway or light rail systems. (China Daily, 4 July)

Timetable rules out WTO this year
There appears to be a consensus emerging among WTO members on the timetable for China's accession. Members will meet again in mid-September hoping to finalize a consolidated package of accession documents and then to recommend it to ministers for endorsement in Doha, Qatar, when the WTO ministerial conference takes place there in November. The National People's Congress will then have to ratify the accession protocol and allow for 30 days for it to be effective. China will therefore be a member of the WTO only early next year. (South China Morning Post, 4 July) And now see how the same timetable can read slightly different.

WTO bid: China eyes November entry
China and the WTO have made significant progress towards wrapping up Beijing's 15-year quest for membership, and now aim to pull out the stops so WTO ministers can formally approve Beijing's entry at a November conference in Qatar. Two areas of disagreement remain (Chinese ownership in insurance company, tariff-rate quotas). China has also yet to conclude a bilateral deal with Mexico. After WTO ministers have formally approved the text outlining the terms and conditions of China's accession, the documents must then be ratified by China and only 30 days later can Beijing become a fully-fledged WTO member. (China Daily, 5 July)

South Korea lifts ban on Chinese poultry
South Korea partially lifted a ban on importing ducks and other poultry from China, one month after the restriction had been imposed because of a bird flu outbreak. (SCMP, 5 July)

Guangdong rallies behind stricken export sector
The Guangdong provincial government is scrambling for ways to boost its flagging export sector - battered by the global economic slowdown. Guangdong generates 35% to 40% of its GDP from exports. So far this year, export expectations have failed to be realized in any of the months, with January and May registering a decline and an overall increase below the national average. Among measures to help boost sagging exports are the government accelerating the export-rebate process, raising mortgage loans to a total of RMB 60 million, providing RMB 50 million of financial help and lowering exporters' income tax. (SCMP, 5 July)

Shanghai launches "go-out" strategy
Shanghai has announced a "go-out" strategy that will boost its investment overseas to USD 500 million in the next five years. The city will foster a group of influential multinationals and establish a group of overseas production bases to boost its transfer of matured industries to overseas and the export of raw materials, equipment and spare parts. It also aims to greatly expand its share in the international civil engineering market and related labor. Shanghai's telecommunications, software, microelectronics, digital technology, biomedicine, new materials, automotive, garment design and other industries will set up development and research centers and design centers in developed countries. By the end of 2000, Shanghai had invested USD 320 million in 580 projects in about 70 countries and regions, and sent more than 30'000 people out to engage in labor services there. (Xinhua, 6 July)

Merger to create TV giant confirmed
The minister of the State Administration of Radio confirmed that a TV-radio broadcasting group, the largest of its kind in China -- made up of China Central Television (CCTV), China National Radio (CNR) and China Radio International (CRI) -- will be put together this month. (China Daily, 7 July)

Weekly Market update		6 July 2001	29 June 2001
Shanghai A		2,261.85	2,309.99
Shanghai B		207.80	217.34
Shenzhen A		676.87	690.80
Shenzhen B		331.64	369.35
Hong Kong Red Chip		1,178.46	1,198.67
Hong Kong H		516.50	532.08