CAAC: Restructuring plan under way
The reorganization of the domestic aviation industry is going smoothly and is expected to be completed within two years. The three new aviation groups involve Beijing-based Air China, Shanghai-based China Eastern Airlines and Guangzhou-based China Southern Airlines. They will combine assets, aircraft and management. (China Daily, 28 January)

China's exports expected to maintain growth in 2002
Trade experts have predicted that China's exports may still maintain positive growth this year. The export volume of China for 2001 reached USD 266.16 billion, up 6.8%, while the growth rate for the year 2000 was 27.8%. Foreign trade experts agree that China faces the most unfavorable export situation for years with a declining world economy, which tends to create more trade protectionism, resulting in more anti-dumping suits. (People's Daily, 28 January)

Foreign investment on upswing
In 2001, newly registered foreign enterprises invested in China amounted to 26'139, with contracted and actual investment reaching USD 69.2 billion and USD 46.8 billion respectively. The number of enterprises registered a year-on-year growth of 16.01% while contracted investment saw an increase of 10.43% and actual investment rose 14.9% from the previous year. By the end of 2001, contracted foreign investment totaled USD 745.9 billion, with aggregate actual investment hitting USD 395.5 billion. A total of 390'484 foreign enterprises have invested in China over the past two decades. Based on actual utilized investment volume, the top 10 investors in the Chinese mainland are Hong Kong, the United States, Japan, Taiwan Province, Singapore, Virgin Islands, South Korea, Britain, Germany and Macao. (Business Weekly, 29 January)

Grain farmers already feeling WTO squeeze
Despite the nation being a WTO member for less than two months, farmers in the northeast are feeling the impact in terms of rising stocks, lower prices and unpaid wages. Domestic prices are about 60% higher than on the international market. (SCMP, 29 January)

Beijing not to cancel any preferential policies for foreign entrepreneurs
Vice Mayor Zhang Mao said that Beijing would not withdraw any preferential policies for foreign investors with China's entry into the WTO. Beijing is to encourage foreign investment in high-tech ventures and infrastructure projects. The capital also encourages transnational corporations to establish their regional headquarters as well as research and development centers in the city. (People's Daily, 29 January)

Scandals prompt tighter scrutiny
The central bank is tightening its supervision of the banking industry after a string of scandals, which included an alleged RMB 6 billion theft from the Bank of China. The gravity of corruption at the Bank of China has sent shockwaves through the finance industry. The bank has long been thought of as the most efficient, modern and profitable of China's "big four" state-owned banks, largely as a result of its overseas operations. (SCMP, 29 January)

Securities authorities soften message on plan to sell state shares
China's shares received a lift after regulators sought to ease market fears about a sell-off proposal for state-held shares by releasing a statement saying the plan isn't final. The CSRC also said that when the final plan to reduce the government's huge stake in the corporate sector comes out, it will be one that protects investors' rights and will be implemented in a way that would keep the market from sinking. (Dow Jones Newswires, 29 January)

Counterfeiter's dream
With just six months since Beijing won the right to stage the 2008 Olympics and the Games 6.5 years away, the battle to exploit Olympic images for profit has begun in earnest. As the world's capital of fakes, China is under intense scrutiny by the IOC, which relies on corporate sponsors for most of its income. (SCMP, 29 January)

Harbin makes bid for 2010 Winter Olympics
The city of Harbin has submitted a surprise bid to host the 2010 Winter Games. The frigid capital of Heilongjiang is renowned for its ice festival and commonplace temperatures of minus 30°C. It is about 280km from the Yabuli ski resort, China's largest. (SCMP, 30 January)

State firms winning war on graft
State-owned enterprises directly under central government control turned in a sound performance last year despite the difficult international situation. Apart from economic achievements, these businesses have also effectively curbed corruption and resolved some of the deep-seated problems that sparked corruption, Vice-Premier Wu Bangguo said. (China Daily, 30 January)

Chinese government confirms probe of Bank of China's domestic operations
The troubles at China's flagship international bank, highlighted by the recent downfall of its former president following a U.S. investigation, have widened as the Chinese government disclosed a probe into the bank's domestic operations. The public confirmation of another investigation into the Bank of China has kept an uncomfortable spotlight on the country's most noted -- and until now, its most respected -- commercial lender. (WSJ, 30 January)

Quarter of land now desert - and Man mostly to blame
Desertification has affected 28% of China's land mass, with 18% of the country turning to waste through the effects of overgrazing, deforestation and other ravages. The report followed another survey last week which showed soil erosion affected 37% of China's land. (AP, 30 January)

Bankers up in arms because of PBOC-regulations
The People's Bank of China has issued new regulations for foreign banks in China earlier this week which inflamed many of the normally rather subdued bankers. The main reason for concern has been the new minimum requirements on the capital that the banks need to have at hand, going far beyond international standards. The new requirements mean an increase in operational costs for banks at a moment when many are considering whether expansion in their Chinese investments is worthwhile. (www.cbiz.cn, 31 January)

China submits report bidding for World Expo 2010
Chinese ambassador to France Wu Jianmin submitted to the Bureau on International Exposition a report for Shanghai's bidding for World Expo 2010, including letters from Chinese President Jiang Zemin and Premier Zhu Rongji. (People's Daily, 1 February)

Foreign firms to be granted full trading rights
The Ministry of Foreign Trade and Economic Co-operation is drafting detailed rules on allowing foreign-invested companies full trading rights. On joining the WTO, China has agreed to grant full trading rights to joint-venture enterprises with minority share foreign-investment in 2002 and to majority share foreign-invested joint-ventures in 2003. Within three years after the WTO accession, all enterprises in China would be granted the full right to trade. (China Daily, 1 February)

Pearl River Delta: Joint forces for infrastructure projects
Hong Kong Chief Secretary Donald Tsang and government officials from Guangdong Province and Shenzhen held central government-brokered talks for the first time. As a result of the Beijing meeting, co-operation is set to increase between Hong Kong and the Pearl River delta areas in large-scale infrastructure projects. (China Daily, 1 February)