Swiss economic magazines accredited in Shanghai
"Handelszeitung" and "Cash" have accredited a correspondent in Shanghai. Mr. Janis Vougioukas (janis@vougioukas.de, Tel 021 6280 1854, Fax 021 6294 6775), who also writes for a number of German newspapers, is interested to receive news from Swiss companies doing business in China. (Embassy of Switzerland, 16 August 2002)

Everbright postpones listing after probe shows accounts irregularities
In another blow to the mainland banking industry's credibility, an investigation into China Everbright Bank has found widespread irregularities and a high level of non-performing loans. The findings have forced the bank to postpone indefinitely its plans to list. (SCMP, 12 August)

Hotels get environmental classification
A new "green hotel" classification is being used to evaluate China's hotels and restaurants on their environmental performance. The classification for green hotels or eco-efficient hotels has five grades from A to the highest AAAAA. The classification criteria include areas such as energy use, water and waste gas emission, air quality and prevention of fire and food poisoning. (China Daily, 12 August)

OZ wins China's first LNG terminal deal
After years of economic and political competition, Australia beat Indonesia and Qatar to secure a USD 10 billion liquefied natural gas supply contract for China's first LNG terminal. (China Daily, 12 August)

Sony Ericsson to invest EUR 40 million in China
Sony Ericsson Mobile Communications Ltd. is investing EUR 40 million to set up a holding company and a research and development centre in China. It also plans to expand capacity at two of Ericsson's joint venture handset plants in Beijing by 50% to meet growing demand for mobile phones both in China and around the world. (AFX News, 12 August)

Mainland exports roar ahead 28%
China's exports grew a dazzling 28.1% to USD 29.2 billion year-on-year for July, in defiance of the sluggish global economy. Foreign direct investment also swelled to USD 29.5 billion in the first seven months, up 22% from the same period last year, as multinationals continued to make their way into China in the wake of its entry to the WTO. (SCMP, 13 August)

Farm exports outshine imports
The export volume of Chinese agricultural products exceeded the import volume in the first half of this year. An influx of foreign agricultural imports had been widely anticipated following China's entry into the WTO. Instead, the country's exports of such products increased significantly. Imports and exports of agricultural products together totalled USD 13.1 billion. Exports were worth USD 8.06 billion, up 6.6%, and the imports USD 5.01 billion, down 8.5%. (Business Weekly, 13 August)

Beijing urges foreign firms to tender for games gyms
As the host city for the 2008 Olympic Games, Beijing will soon invite global tenders for building stadiums and gyms for this important event. A total of 32 stadiums and gyms are needed for the 2008 Olympic Games. Beijing will build 19 new stadiums and gyms, which will cost about USD 14 billion and be completed by those companies that win contracts in global bidding. (People's Daily, 13 August)

Chinese officials destroy 27.5 million illegal audio, video discs
The Chinese government destroyed 27.5 million illegal audio and video discs this week in an effort to crackdown on rampant piracy. The recordings were just part of the 43 million pirated discs that authorities seized in the first half of this year. Experts estimate that China's piracy of entertainment and computer goods cost businesses USD 979 million in lost sales in 2000. (Dow Jones Newswires, 13 August)

Pepsi takes dispute to Stockholm
Pepsi-Cola has taken the unusual step of applying to a commercial arbitration court in Stockholm to cancel its contract with a joint venture partner in Sichuan, alleging illegal management and financial impropriety. (SCMP, 13 August)

China to invest RMB 9 billion in new taxation information system
China is to invest RMB 9 billion in a new computerized taxation information system, in order to establish a nation-wide computer network in five years to collect and share taxation data among taxation offices all over the country. (People's Daily, 13 August)

Car output up as manufacturers anticipate surging demand
China's sedan car output surged 73.8% to a record 94'900 last month as manufacturers increased production in anticipation of continuing robust demand. In the first seven months of this year, mainland manufacturers produced about 523'500 sedan cars, up 39.04% over the same period last year. Passenger cars now account for 25% of vehicle sales in China - compared with about 70% in developed economies. Analysts say car demand was one of the key drivers of China's economic growth in the first half. (SCMP, 14 August)

Wal-Mart buying buoys China
US chain store giant Wal-Mart has become the largest buyer of Chinese made goods among foreign retailers after six years in the mainland market. Last year it bought goods worth USD 10.3 billion on the mainland, which translates into 4.25 million jobs based on the current foreign exchange rate and China's average productivity. This year's purchases are expected to be around USD 15 billion, a rise of 45.6% year-on-year and in the next five years, it could increase to as much as USD 25-30 billion annually. (Standard, 14 August)

Lifting of property ban
The Beijing Municipal Bureau of Land, Resources and Housing Management announced that it would officially lift the distinction between commercial housing sold to local people and that to outsiders from September 1. Currently, foreigners and Chinese from Hong Kong, Macao and Taiwan can only choose housing from a restricted selection. Mainland Chinese without a permanent residence permit for Beijing are also affected. (China Daily, 14 August)

China ranks 6th among World Top 100 Economies
UNCTAD published a list of world top 100 economies of the year 2000. The US, Japan and Germany took the top three places, with China ranking 6th, Taiwan (China) 16th and Hong Kong (China) 26th. This is a list based on GDP for countries and regions, and added value for corporations. ExxonMobil Company took the 45th place with an economic strength of USD 63 billion, ranking between Chile and Pakistan. (People's Daily, 14 August)

Beijing retrieves RMB 140 million of unpaid tax
The local taxation department in Beijing retrieved RMB 140 million in unpaid taxes on the basis of public tip-offs in the first half of this year. A total of 688 tax evasion cases were reported in the first six months. The taxation department commended 20 public informers with rewards totaling RMB 136'000. (People's Daily, 14 August) Beware of your neighbor…

Actual foreign direct investment up 41.78% in July
FDI in China surged 41.78% in July, the seventh month of continuous growth this year. China approved a total of 3'371 new overseas-invested ventures, up 63.09% compared with the same month last year. The contractual volume of FDI reached USD 10.363 billion, up 51.64%. Actual FDI added up to USD 4.963 billion. By the end of July, China had approved a total of 408'500 overseas-invested ventures, involving USD 799.645 billion in contractual volume. Actual FDI hit USD 424.765 billion. (People's Daily, 14 August)

Retail sales growth stalls, consumer prices drop, savings grow
Last month, retail sales growth stalled, while consumer prices continued to drop, and household savings grew 18.4% to pass USD 1 trillion for the first time. Retail sales in July rose 8.6% from a year earlier to RMB 309.66 billion. The consumer price index for July declined 0.9% over the same period last year. Consumer prices have not been growing since October last year. Household savings went beyond USD 1 trillion for the first time in July. (www.cbiz.cn, 14 August)

Taiwan eases China restrictions
The Taiwan government has further loosened restrictions on investing directly in China, lifting the ban on 68 categories in the service industry, including civil air transport, oil products, retailing, legal services and real-estate brokering. Bans on major infrastructure projects remain in place. An estimated 40'000 Taiwanese ventures have already set up operations in China, investing around USD 100 billion. (Taipei Times, 14 August)

11 foreign-funded firms set up daily in Shanghai
During the first half of this year, a total of 1'978 foreign-invested enterprises were opened in the city, up 52.74% over the same period last year. Foreign-invested enterprises that each had a total investment of above USD 10 million numbered 99, or 35.62% more than a year ago. Of the newly opened foreign-invested enterprises, 81.5% were wholly foreign owned. (ChinaOnline, 14 August)

Labor unrest at a turning point
Human Rights Watch said worker protests in China from March to May were a turning point because of their size and organization. The protests by laid-off workers in the northeastern cities of Liaoyang and Daqing and the eastern mining town of Fushun challenged the ruling party's legitimacy. There were the first time so many well-organized, laid-off workers and their sympathizers who took to the streets simultaneously and sustained their protests for weeks rather than days." (FEER, 15 August)

Disposable income rises, unemployment as well
The average per-capita monthly disposable income of urban Chinese rose a year-on-year 17.5% in the first half of this year to RMB 657. The growth was the result mainly of higher wages for civil servants and rising severance payments for laid-off workers. Meanwhile, China's urban jobless rate rose in the first six months of this year to 3.8%, up from 3.6% at the end of 2001. Official statistics are widely believed to underestimate unemployment hugely. (FEER, 15 August)

Insurance market 'immature'
A new survey indicates that the Chinese insurance market is still underdeveloped and insurance awareness needs improving. The survey, by the Development Research Centre polled 22'182 families in 50 cities. Only 6% of those families said they had enough insurance knowledge, while 36% said they knew little about insurance. (Xinhua, 15 August)

Chinese interested in property market
Chinese businesses are reportedly showing a strong interest in Taiwan real estate since the lifting of the investment ban on Chinese nationals. However, until the direct links are opened with China, interest among Chinese investors will be affected by the inconvenience of the ban on direct trade and transport and the lack of supplementary measures to facilitate business across the Strait. (Taipei Times, 15 August)

Revenue growth slows despite cheats clampdown
China's tax revenue growth slowed considerably on previous years to 10.8% in the first seven months, with RMB 996.5 billion collected. With taxes accounting for more than 90% of central government revenue the slowdown could hurt Beijing's expansionary fiscal policy as a stimulant of domestic demand and overall economic growth. Revenue growth fell despite a high-profile, nationwide campaign against tax dodging by domestic and foreign companies as well as wealthy individuals. (SCMP, 16 August)

Ex-China Everbright chief to face graft trial
The former head of the China Everbright Group has been kicked out of the Communist Party and faces prosecution for "absolutely vile" financial crimes. Zhu Xiaohua, a former protege of Premier Zhu Rongji, was arrested for taking bribes of several million Hong Kong dollars and violating rules to grant loans while at the helm of China Everbright. (SCMP, 16 August)

Foreign copyright owners to gain equal legal rights in China
Foreign copyright owners will receive legal protection equal to that of their Chinese counterparts. The current regulation for the implementation of the Copyright Law stipulates that only the State copyright authority is eligible to handle complaints of infringement on foreigners' copyrights. The new regulation eliminates this restriction and allows foreign copyright owners to seek redress from local administrations. (China Daily, 16 August)

New rules to entice overseas funds
The upcoming set of regulations for foreign investment through mergers and acquisitions is expected to trigger a new foreign investment boom. Last year, China attracted actual foreign direct investment of USD 45.7 billion. However, only 5 to 6% of the total investment was from foreign mergers and acquisitions, a very modest figure compared with other countries. (China Daily, 16 August)

RMB 150 billion plan aims to tame Yellow River
Beijing is preparing a 10-year, RMB 150 billion project to tackle flooding and environmental problems facing the Yellow River. The project will be the largest on the Yellow River since 1955, when Beijing and the then Soviet Union joined to launch a massive flood control, irrigation and hydroelectric project that included the building of 46 dams. (SCMP, 17 August)

Car prices soar in licence drought
China's entry into the WTO was supposed to bring down prices of imported cars and lead to a surge in imports. Imports rose in the first half of the year but still account for a fraction of the market and prices have risen sharply. China entered the WTO but made no increase in the number of licences to import cars, set at 120'000 this year. This has led to frantic searching for import licences. As a result, the licence, which has a face value of RMB 10 yuan, has been traded for up to RMB 100'000. The biggest beneficiaries of the higher prices have been domestic manufacturers who have enjoyed a bumper year for sales. (SCMP, 17 August)

Shanghai issues new policies to attract multinationals
Shanghai has drawn up new policies to encourage transnational companies and purchasing groups to establish their regional headquarters in the city. The new policies permit multinationals established in Shanghai to engage in foreign trade. Employee training for international companies with their regional headquarters in Shanghai will be subsidized, and procedures for company personnel entering and leaving China will be simplified. The policies, however, require these companies to have big assets and have at least three subsidiary companies in China's mainland. (Xinhua, 18 August)

State Council approves expansion of Beijing economic zone
China's State Council has consented to the Beijing Economic Technological Development Zone being expanded by 24 km2. The development zone presently covers 15.8 km2. 1'055 enterprises from 35 countries, including 38 of the world's top 500 companies, have set up business there. The zone has attracted USD 4 billion in overseas investment and has become an important base for the development of information technology, biological technology, new materials and energy. (People's Daily, 18 August)