China Economy: News & Discussion

cir

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China develops Longteng server by home-designed Loongson CPU



2011-12-26 — The recent success of the Longteng server using a home-designed Loongson CPU is an important step in building China's proprietary IT industry and enhancing national security, say industry insiders.

Developed by Tianjin-based Dawning Information Industry Co Ltd, the Longteng server has "full Chinese proprietary intellectual property from the hardware to the operating system, application software and middleware", said Deng Hongsheng, the director of Dawning's Longteng server department.

Middleware is a kind of software that allows multiple processes running on one or more machines to interact.

The Longteng server with the Loongson 3A quad-core CPU can accommodate the NeoKylin and NFS operating systems developed by Chinese companies based on Linux.

The Longteng server has "particularly high security, because its hardware and software are both home-developed", said Nie Hua, vice-president of the company.

"It will help eliminate the security problems currently existing in many fields in our country, such as e-business and national defense," he said.

"It will also increase our capability in information security management."

China-developed server boosts high-tech chain

The development of China's proprietary computer science technologies is gaining increased international attention.

Two years ago, a story in the popular US-based computing magazine Wired said "the Loongson chip is going to change more than just computer ownership rates in the most populous nation on the planet".

"It's going to have a profound impact on computers everywhere," said the article titled "The People's Processor".

Dawning President Li Jun noted "if we want a Chinese CPU to become mainstream, we have to take it out of the lab to the market and let it join the competition".

Li Guojie, a scholar at the Chinese Academy of Engineering, said the arrival of the Longteng server will "integrate many of China's other recent achievements in core electronics components, high-end chips and basic software", helping promote the commercialization of the Loongson series CPU.

The success will also help develop a number of related home-developed products including operating systems, middleware, and database and application software to help establish China's own IT industry chain, said Li.

The central and Tianjin governments each granted Dawning a 15 million yuan ($2.3 million) subsidy to build a production line making five types of servers based on the Loongson CPU. The company aims to sell 1,000 servers over the next year.

Deng noted an additional benefit is the server's eco-friendly design.

"In addition, we took the concept of eco-friendliness into consideration and implemented a series of energy-saving measures," he said.

Founded in 1996, the company built the Dawning Nebulae supercomputer last year that has a computing speed of 1.27 petaflops per second, the second-fastest in the world.
Used in Radar Signal Processing - performance found several times higher than foreign products :thumb::thumb:
 

cir

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Guangdong to become the first trillion dollar province in 2012, followed by Jiangsu and Shandong in 2013. :rofl:

China's Provincial GDP Figures in 2011

Posted on January 27, 2012 by China Briefing

Two-thirds of China's provinces report GDP figures over RMB1 trillion (US$158 billion) in 2011

By Julia Gu

Jan. 27 – Preliminary statistics show that China's GDP grew at a robust 9.2 percent in 2011 to RMB47.16 trillion (US$7.26 trillion), the National Bureau of Statistics (NBS) said last week at a press conference.

While this rate represents a drop of 1.2 percent compared to the 10.4 percent GDP growth experienced in 2010, last year's growth rate was still 1.2 percent above the 8 percent year-on-year growth target set at the beginning of 2011.

NBS Chief Ma Jiantang told reporters that China's economy grew 9.7 percent and 9.5 percent year-on-year for the first and the second quarters of 2011, respectively. However, the economy slowed down to 9.1 percent in the third quarter, which was followed by growth of 8.9 percent in the fourth quarter.

Though the data show a decline, Ma said that China's economy is still growing stronger than expected and hailed China's economic performance in 2011 as a "good start" for the country's 12th Five-Year Plan, from 2011 to 2015.

"Although GDP growth fell on a quarterly basis, it was within a reasonable range and the country's economic fundamentals were not changed. We have confidence for 2012"²s growth," said Ma.

"We should no longer be obsessed with the speed of growth," said Lu Zhongyuan, deputy director of the Development Research Center of the State Council.

Lu predicted the expansion of China's GDP growth will slow down to 8.5 percent in 2012. A report released by the Center for Forecasting Science under the Chinese Academy of Sciences also forecasts economic growth of 8.5 percent for this year.

Provincial GDP Statistics
When breaking down China's 2011 statistics, an impressive 22 provinces reported GDP figures in excess of RMB1 trillion (US$158 billion), according to the yearly economic reports of local governments.





South China's Guangdong Province, the longtime leader of the Pearl River Delta's bustling economy, is the country's first region to claim a GDP over RMB5 trillion, increasing 10 percent year-on-year in 2011. Fixed asset investment into Guangdong grew by 17.6 percent last year to RMB1.69 trillion (US$267 billion) and the province's trade volume amounted to US$913.48 billion, expanding 37 percent from 2010. Provincial Governor Zhu Xiaodan said that Guangdong will slow GDP growth to 8.5 percent in 2012, and will be more focused on the quality of economic development.

In East China, Jiangsu Province's GDP grew 9.2 percent to RMB4.8 trillion (US$759 billion) in 2011, according to the provincial government's report. Jiangsu's GDP per capita reached US$9,500, and the region's used FDI amounted to US$32 billion.

Deputy Governor of Shandong Province Wang Junmin told reporters that recent data show Shandong's GDP came in at RMB4.5 trillion (US$711 billion) in 2011. Meanwhile, Zhejiang Province, a major manufacturing hub in the Yangtze River Delta, reported that in 2011, the province's GDP increased by 9 percent to RMB3.2 trillion (US$506 billion).

Economic data from Sichuan show that it is the first province from West China to join the "2-trillion" club, with a GDP of RMB2.15 trillion (US$340 billion), provincial authorities said. Official figures show that the province's growth rate was 14.7 percent year-on-year, more than 5 percent higher than the national average. Seven cities in Sichuan each reported GDP levels of over RMB100 billion last year, namely Chengdu RMB680 billion, Mianyang RMB118.91 billion, Deyang RMB113.75 billion, Yibin RMB109.12 billion, Nanchong RMB102.95 billion, Dazhou RMB101.18 billion and Liangshan RMB100 billion.

These annual reports from the local authorities reveal that while China's economic growth slowed slightly, the country managed to avoid any major economic shocks and, instead, exceeded the national growth target by a significant margin.

Dezan Shira & Associates is a boutique professional services firm providing foreign direct investment business advisory, tax, accounting, payroll and due diligence services for multinational clients in China, Hong Kong, India, Singapore and Vietnam. For further information, please visit the firm's web site or contact them at [email protected].

China's Provincial GDP Figures in 2011 | China Briefing News
 

cir

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China's festival holiday boosts retail

Updated: 2012-01-29 00:09

(Xinhua)

BEIJING -- China's retail sales for the week-long Spring Festival holiday rose 16.2 percent year-on-year, boosted by a variety of promotional events, data from the Ministry of Commerce (MOC) showed on Saturday.

Shops and restaurants across the country pocketed 470 billion yuan ($74.4 billion) in sales volume, with that of clothes, jewelry and foods up 18.7 percent, 16.4 percent and 16.2 percent respectively, the MOC said.

The increases came as businesses rushed to take advantage of the nationwide shopping spree during the week-long holiday by launching many promotional events featuring the Dragon Lunar New Year.

The Spring Festival, or Chinese Lunar New Year, which fell on Jan 23 this year, is traditionally a time for family reunions in the nation. Businesses experience a boom during the period as people swarm to shops and restaurants.

Sales of festival-related goods saw double-digit growth in most regions, with the volume rose 15.5 percent in Beijing, 17.9 percent in Jilin, 18.1 percent in Qingdao, and 14.2 percent in Dalian.

Among the purchases, New Year gold bars, gold ingots and other Dragon-themed jewelries were most favored by consumers.

Sales of gold, silver and jewelry rose 57.6 percent during the week-long holiday at Beijing's Caibai store, a most famous gold seller in the city. Other jewelry stores across the country also saw sales surge during the period, according to official data.

Electronics and home appliances were also well-received by consumers. Digital Single Lens Reflex, 3D TVs and the newly released iPhone 4s were among their favorites.

In addition to shopping, many people turned to traditional activities, such as visiting temple fairs.

Beijing's Grand View Garden fair received 100,000 visitors during the holiday while over 1.2 million sightseers went to the Ancient Culture Street in the city of Tianjin.

Restaurants and entertainment facilities were all flooded with people.

The spending spree, a sign of the country's buying potential, comes amid persistently high inflation in the country.

The country's consumer price index (CPI), a main gauge of inflation, rose 5.4 percent in 2011 from the previous year, well above the government's full-year control target of 4 percent, official data showed.

Though many had complained about inflation chipping away their earnings, their shrinking pockets did not spoil their appetite for shopping, giving hopes that domestic spending might come to help shore up the economy as the magic of export and investment wanes amid the global economic headwinds.

China's festival holiday boosts retail|Top News|chinadaily.com.cn
 

amoy

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I count by finger, only 4 provinces or equivalent were < 9.2% i.e. Zhejiang, Shanghai, Hubei, Beijing most of which except Zhejiang are small in size/quantity. Then how comes overall China's GDP grew at a robust 9.2 percent in 2011 while most provinces report exciting data way above that?

Even if GDP really galloped thanks to fixed asset investment despite flat imp/exp, commoners would ask "what is in it for me?" since the increase in income doesn't match up with GDP %%. Pension hikes, for instance, are to take effect only in 2012. And it's reported income increase for urban residents @8.4%,rural resident @11.4% with CPI 5.4% already deducted. But do people really 'feel' that increase??

A big question mark for buy-in of that GDP mania!

Guangdong to become the first trillion dollar province in 2012, followed by Jiangsu and Shandong in 2013. :rofl:

China's Provincial GDP Figures in 2011

Posted on January 27, 2012 by China Briefing

Two-thirds of China's provinces report GDP figures over RMB1 trillion (US$158 billion) in 2011

By Julia Gu

Jan. 27 – Preliminary statistics show that China's GDP grew at a robust 9.2 percent in 2011 to RMB47.16 trillion (US$7.26 trillion), the National Bureau of Statistics (NBS) said last week at a press conference.

Provincial GDP Statistics
When breaking down China's 2011 statistics, an impressive 22 provinces reported GDP figures in excess of RMB1 trillion (US$158 billion), according to the yearly economic reports of local governments.



 
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B

billyong

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Don't make no sense does it.
It makes perfect sense! If overall China's GDP grew match sum of Provincial GDP perfectly! that means there is something wrong!
B/C each province is only caculating thier own GDP, they dont cooperate with other provinces. For instance, province A have a construction company building a road in province B. Since the company is paying tax to province A and registered in province A, for sure province A will consider this company made GDPs for province A. On the other hand, province B will also caculate this GDP B/C this is happened in Province B. But on centure government level, they only consider overall number such as how much electricity the country used, how much tax they recieved, and how much export done this year. ext
A easy way to tell this GDP grows is fake or not. Just check the grows of fiscal revenue of 2011.

China's 2011 fiscal revenue up 24.8% to US$1.64 trillion
China's 2011 fiscal revenue up 24.8% to US$1.64 trillion - China.org.cn
BTW CHina just raising the monthly tax exemption threshold from 2,000 yuan (307.7 U.S. dollars) to 3,500 yuan (538.5 U.S. dollars). 6 months ago.
 

cir

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China Pushes Global Financial Role for Shanghai

ASIA BUSINESSJANUARY 30, 2012, 8:14 A.M. ET

China Pushes Global Financial Role for Shanghai - WSJ.com

SHANGHAI—China's top economic planning body set new targets on Monday in its effort turn the city of Shanghai into a global financial hub, including a more than doubling of trading volume in financial markets and a greater openness to derivatives such as foreign-exchange products.

At the same time, the blueprint fell short of setting a clear timetable for the much-anticipated launch of a marketplace for share listings by foreign companies. Companies ranging from HSBC Holdings PLC to Coca-Cola Co. previously have expressed interest in listing in Shanghai, where currently only shares of domestic companies can be traded.

Shanghai is already China's financial capital, but barriers against foreign capital and the government's tight control over the yuan have limited the city's global reach. China has stepped up its efforts to lower capital barriers and loosen its grip on the yuan over the past two years, including by promoting it for wider use in international trade and finance. But analysts have said the pace of liberalization remains slow.

The National Development and Reform Commission said in the blueprint that it projects the trading volume of Shanghai's financial markets—excluding foreign-exchange transactions—will reach about 1,000 trillion yuan ($158 trillion) by 2015. In 2010, those markets had a total trading volume of 386.2 trillion yuan, according to the commission.

The blueprint also calls for the Shanghai-based interbank bond market to become one of the world's top three in terms of the volume of outstanding bonds, compared with its No. 5 rating in 2010.

The city aims to be one of the world's top five financial derivative markets by 2015, according to the blueprint. The NDRC said officials will research financial derivative products that are related to foreign-exchange rates, interest rates, stocks and bonds and roll out the products when time is right. It also said it will steadily expand the scale of credit derivatives and launch structured derivatives at the right time, without offering specifics.

The NDRC also said it hopes to make the yuan's central parity level, a daily reference exchange rate published by the Chinese central bank, the main pricing and trading benchmark for the currency both onshore and offshore by 2015. Currently, the yuan can move only up or down 0.5% against the U.S. dollar from the daily reference rate on the mainland market, though it can move more strongly on the fledgling market for offshore yuan in Hong Kong.

The NDRC said it expects Shanghai to remain world's largest spot gold market in terms of trading volume through 2015 and the city aims to be one of the world's top five financial derivative markets by then.

—Wynne Wang and Shen Hong
 

cir

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February 1, 2012 2:05 am

China's factories in strong start to 2012

By Simon Rabinovitch in Beijing

The Chinese manufacturing sector has made a surprisingly strong start to the year, with domestic orders cushioning the impact of Europe's debt woes, according to an official survey.

The purchasing managers' index, an important gauge of factory growth, rose to 50.5 in January from 50.3 a month earlier. In remaining above 50, the PMI indicated an expansion in industrial activity that confounded forecasts for a decline.

The sub-index measuring export deals fell but Chinese factories noted an increase in their domestic business, as the world's second-largest economy remained robust despite the government's sustained campaign to cool the property sector.

China&rsquo;s factories in strong start to 2012 - FT.com
 

cir

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South Korea Plans to Buy Chinese Equities to Diversify Reserves

January 31, 2012, 9:33 PM EST

By Eunkyung Seo, Saeromi Shin and Jiyeun Lee

Feb. 1 (Bloomberg) -- South Korea's central bank is considering buying several hundred million dollars worth of Chinese equities and a greater amount of the nation's bonds to diversify its foreign-exchange reserves.

"The Chinese yuan has the potential to become a key reserve currency in the long term and thus we are building a channel to invest there," Choo Heung Sik, 53, director general at the Bank of Korea's Reserve Management Group, said in an interview in his office yesterday in Seoul. He said the bank may invest in Chinese shares in the second half of this year, after purchases of debt in the first six months.

The diversification plans for South Korea's $306 billion of foreign-exchange holdings underscore increasing international interest in yuan assets as China's global economic stature rises and its government promotes international use of its currency. A slide in yields on U.S. Treasuries has diminished interest income for the world's largest reserve currency, the dollar.

"Our China investment will be done from a long-term perspective and as part of our asset diversification plan," Choo said. "Our confidence in the U.S. dollar is still strong. We will move like a snail as for diversification."

The BOK said Jan. 18 it received approval from the People's Bank of China to buy bonds and obtained a license as a Qualified Foreign Institutional Investor, or QFII.

Japan's Plans

South Korea Plans to Buy Chinese Equities to Diversify Reserves - Businessweek
 

cir

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PetroChina buys Canada shale stake from Shell

Shawn McCarthy — GLOBAL ENERGY REPORTER

OTTAWA— Globe and Mail Update

Published Thursday, Feb. 02, 2012 6:11AM EST


Labourers work at a well head in a PetroChina oil field in Tongnan, southwest China's Sichuan province. (REUTERS)

China's largest oil company, China National Petroleum Corp., is plunging into Canada's shale gas business with a deal to purchase 20 per cent of Royal Dutch Shell PLC's wholly-owned Groundbirch property.

At a news conference in London on Thursday, Shell's chief executive Peter Voser confirmed the two companies had signed "binding agreements," but neither side would disclose the price. Reports out of Asia pegged it at $1-billion.

Shell and CNPC - known as PetroChina - have partnered in projects around the world, including the Chang Bei tight gas play in China and the 2010, $3-billion purchase of Australia's Arrow Energy, a coal-bed methane producer.

PetroChina is also a member of a Shell-led consortium that is pursuing a liquefied natural gas (LNG) project in Kitimat, B.C., to ship gas to premium-priced Asian markets.

Shell has extensive holdings in the Montney shale gas region of northeastern B.C., and the PetroChina deal covers only its wholly-owned properties. The Anglo-Dutch super-major has projected that the Groundbirch property could be producing more than 400 million cubic feet per day by 2014, and that the resource has the potential to support 1 billion cubic feet per day.

For PetroChina, the deal represents the latest foray into Canadian oil and gas industry, and comes as Prime Minister Stephen Harper prepares for his visit to Beijing next week, a trip aimed in part at attracting more Chinese investment to Canada.

All told, state-owned Chinese companies have invested $10-billion into Canadian oil and gas sector.

PetroChina's proposed $5.4-billion investment in Encana Corp.'s (ECA-T19.400.532.81%) shale gas properties in British Columbia collapsed after the two sides disagreed on valuations.

Last month, the company agreed to acquire full ownership of the undeveloped MacKay River oil sands project from its joint venture partner, Athabasca Oil Sands Corp. The company had purchase 60 per cent of the property two years ago."
 

cir

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N.Korean Business Zones to Be Included in FTA with China

The Chosun Ilbo (English Edition): Daily News from Korea - N.Korean Business Zones to Be Included in FTA with China

The government apparently wants to include the Rajin-Sonbong and Hwanggumpyong special economic zones as external manufacturing regions in free trade talks with China, it emerged on Thursday. Seoul would give the same tariff benefits to products manufactured in the two areas that were given to goods made in the Kaesong Industrial Complex in the South Korea-ASEAN FTA that went into effect in 2007.

That would allow three-way trade between South Korea, China and certain regions of North Korea.

A government source said, "The Korea-China FTA has the special characteristic of forging a kind of economic alliance with China, which in turn has close ties to North Korea, and must be therefore be pursued with the possible improvements in inter-Korean relations in mind."

The two zones mostly benefit from Chinese investment, whereas the Kaesong complex consists of South Korean businesses.

Before announcing the goal of beginning FTA talks with China by the end of this year, South Korean trade officials apparently discussed the North Korean variable. Chung Jin-young at Kyunghee University said at a seminar hosted by the [South] Korea Institute for Economic Policy on Tuesday, "If trust between South Korea and China is strengthened through a bilateral FTA, it will have a positive impact on inter-Korean relations. North Korea could be pressured to reduce its dependence on China and improve inter-Korean relations."

Some experts want South Korea to join China in developing the Rajin-Sonbong and Hwanggumpyong zones. "The Korea-China FTA signifies economic intervention in North Korean affairs," said Choi Won-mok at Ewha Womans University. "We need to consider two-way, tariff-free trade by taking part in Rajin-Sonbong and Hwanggumpyong."

Choi called for more joint-Korean economic projects apart from the Kaesong Industrial Complex to Rajin-Sonbong and Hwanggumpyong. In that case all Chinese goods produced in those regions could be imported by South Korea, while South Korean products made there could be exported to China.

Seoul believes China would not oppose such a proposal, since it also supports North Korean stability. Another government official said, "China wants North Korea to survive without collapsing. We also need to get North Korea interested in the Korea-China FTA."

With its tattered economy, North Korea may not be too excited about the Korea-China FTA, but Pyongyang could passively support it if it sees potential economic benefits. The government plans to launch FTA talks with China between March and April after gathering public opinion.
 

cir

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:thumb::thumb:

Scientific input to seed agriculture

Updated: 2012-02-02 08:00

By Jin Zhu (China Daily)

No 1 policy document of the year continues to focus on rural issues

BEIJING - China vowed to renew its efforts to improve agriculture through science and technology as part of a major effort to boost the country's agricultural production and increase farmers' incomes, a central policy document said.

Developing agricultural technology is the core issue to ensure the quality and safety of agricultural products, according to this year's No 1 document issued by the Central Committee of the Communist Party of China (CPC) and the State Council on Wednesday.

The central authorities regularly release a major policy document at the beginning of each year to address government priorities.

This is the ninth consecutive year that the first document has been themed on rural issues.

China will also quicken the pace of constructing water-conservation facilities, treat rivers and lakes, strengthen reservoirs, prevent geological disasters and increase the areas that have access to irrigation, the document said.

Similarly, the document said the country will push for agricultural mechanization by boosting credit support for the purchase of machinery.

It also pledged to launch key ecological projects in the country.

With 9 percent of the world's arable land being used to feed 22 percent of the world population, China's achievements and contributions to world food security are universally recognized.

The country's grain output hit 571 million tons in 2011, a 4.5 percent year-on-year increase and the eighth consecutive year of growth, statistics from the National Bureau of Statistics showed.

The latest harvest exceeded the nation's plan to boost the annual grain yield to 550 million tons by 2020.

Meanwhile, the output of all major agricultural products in China has increased in 2011, for the first time in 16 years, Minister of Agriculture Han Changfu said at the central government's conference on rural work in December.

Analysts and senior officials said that the country must boost technological inputs into agricultural production to counter food demands of a growing population and the shrinkage of arable land, which is being lost to rapid urbanization.

"China is now leading the world in some fields of agricultural technology, such as cultivating grain seed varieties," said Li Maosong, director of the Chinese Academy of Agricultural Sciences' agriculture information office.

Meanwhile, the country lags behind in many other fields, compared with the United States and some European countries, including corn and vegetable production, and raising livestock and poultry, he said.

Li said the country will show strong demand for top-quality seed varieties, such as anti-drought and pest-resistant seeds, and advanced cultivation methods in the next few years to improve unit yield and the quality and safety of agricultural products.

Also, statistics from the National Bureau of Statistics showed that urban residents accounted for 51.2 percent of the population in 2011, surpassing 50 percent for the first time, meaning more rural labor was being lost, analysts said.

"Major efforts will be strengthened to provide more educational training on science and technology in the rural areas to produce professionals in the sector to facilitate production growth," Chen Mengshan, chief economist of the Ministry of Agriculture, was quoted by Xinhua News Agency as saying on Wednesday.

Scientific input to seed agriculture|Society|chinadaily.com.cn

China Daily
 

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Canada PM Looks To Expand Economic Ties With China During Visit

--To visit China Feb. 8-11

--Several bilateral meetings planned, including with Chinese President

--Cabinet ministers, business leaders among the entourage

By Nirmala Menon

Of DOW JONES NEWSWIRES

OTTAWA (Dow Jones)--Canadian Prime Minister Stephen Harper aims to expand economic ties with China when he makes his second official visit to the country next week, as the government looks to boost energy exports to the emerging-market giant, a spokesman said Friday.

Harper will be accompanied by four senior ministers, including the ministers of natural resources, trade, agriculture and foreign affairs, spokesman Andrew MacDougall said at a briefing for reporters.

Harper will hold a number of bilateral meetings including with China's President Hu Jintao during the Feb 8-11 visit. MacDougall said the leaders will likely discuss the global economy - specifically the euro-zone crisis - and Harper is also expected to raise the threat Canada says is posed by Iran's nuclear ambitions.

Canada has become increasingly vocal about advancing trade with Asia since the U.S. administration delayed, and then canceled, a proposed pipeline that would take Canadian crude to the U.S.

MacDougall said it was "absolutely in Canada's interest" to diversify exports of resources to China, noting that 99% of Canadian oil is currently shipped to the U.S. He said the problem with regards to energy exports to Asia isn't one of demand, but Canada's ability to supply.

The government hopes that Enbridge Inc.'s (ENB) Northern Gateway pipeline, which would transport oil from Alberta to a port in Kitimat, B.C. and across the Pacific, will help boost energy export to China and other Asian markets. But this project faces substantial resistance from native and environmental groups. Regulatory hearings have begun and are expected to take more than a year.

Harper said in a speech in Davos last week that it will be a "national priority" to ensure Canada has the capacity to export energy products beyond the U.S. and specifically to Asia. He said the government will soon take action to ensure that major projects are not subject to "unnecessary regulatory delays."

MacDougall said Canada and China have "clear interest that we can meet each others needs in a number of areas, and that's not just energy." He said exports to China have increased since Harper's first visit there in 2009, and tourism has risen since Canada was granted approved-destination status by Beijing following that visit.

"So we're seeing a deepening of the economic relationship there, and we do hope to make even more progress on that front to continue getting Canada into the markets where there is real growth that will create jobs and growth back here," MacDougall said. One of these area is education, according to a senior government official, who said Canada draws some 64,000 Chinese students a year, who bring in C$1.9 billion to the country.

Canadian businesses are having "market access issues" in China and this will likely be raised during the visit, MacDougall said.

MacDougall said Harper will also look to continue dialogue on human rights during his visit. "The Prime Minister won't ever hesitate to speak his mind on that," he said.

Business leaders from key industries, including energy, transport and tourism, will also accompany Harper on the trip.

-By Nirmala Menon, Dow Jones Newswires; 613-237-0668 [email protected]

UPDATE: Canada PM Looks To Expand Economic Ties With China During Visit - WSJ.com
 

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China has a new plan for petrochems' development

Updated: 2012-02-04 07:48

By Zhou Yan (China Daily)

BEIJING - China has mapped out a Five-Year Plan (2011-15) for the petrochemical industry that will see the country form as many as four refining bases in the coastal regions, each with a refining capacity of 20 million metric tons by the end of 2015.

The country also plans to set up three ethylene production bases, with a production capacity of 2 million metric tons each, over the same period, according to a general plan released by the Ministry of Industry and Information Technology (MIIT) on Friday.

Figures from China Petrochemical Corp, the country's biggest oil refiner, show that the country had 17 refineries with at least 10 million metric tons of refining capacity.

The MIIT plan said the nation will also raise the annual processing capacity of crude oil to 600 million metric tons by 2015, compared with 450 million tons last year.

Analysts said China will consolidate its refineries by focusing on establishing large-scale facilities and shutting down smaller units that have obsolete refining capacity. These are mainly operated by small private companies.

In addition, MIIT estimates that oil product demand will reach 320 million tons by the end of 2015, with a compound annual growth rate of 5.5 percent in five years starting from 2011.

Growth will slow from the 7.8 percent seen annually in the previous Five-Year Plan period, which ended in 2010.

Apart from the widely expected economic slowdown, both in China and globally, the decline in demand growth will be mainly caused by a weak increase in demand for gasoline, which may maintain lower demand growth in the coming years, said Lu Ying, an analyst from the oil market service provider oilgas.com.cn

Lu added that China's gasoline demand may maintain an average annual growth rate of around 3 percent to 4 percent within the five years, similar to the rate seen during the previous Five-Year Plan period.

Given slowing economic growth in 2012, diesel demand is also likely to see a weaker increase. "The major demand engine will be jet fuel," said Lu.

The market expects that China may lift its retail prices for gasoline and diesel for the first time this year sometime in April to reflect the volatile international crude oil prices.

China Daily

China has a new plan for petrochems' development|Business |chinadaily.com.cn
 

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:thumb::thumb::thumb:

Shanghai and Hongqi cars ready to hit the road again

Updated: 2012-02-04 07:48

By Li Fangfang (China Daily)

BEIJING - China's strong desire to use domestic brands as official vehicles may provide a golden opportunity to revive the country's two most historic and famous cars, Hongqi (Red Flag) and Shanghai.

Moreover, the revival may have repercussions for Audi AG, which currently supplies the majority of the nation's official vehicles, said analysts. China is the German luxury-car brand's largest market.

Recently, the Ministry of Industry and Information Technology included three Shanghai-branded car models in its new vehicle product list. The engine capacity of 1.8 liters indicates the new models of the old brands - which all but disappeared from the market for two decades - will be medium-sized sedans, in line with the requirements for official cars.

Chinese newspapers also reported this week that the country will promote the use of Hongqi sedans - which in 1958 were China's first domestically produced cars - as limousines for officials at the level of minister and above.:thumb:

Shanghai Automotive Industry Corp (SAIC) said in an e-mailed reply to China Daily on Friday that China's top automaker has included Shanghai-branded models in its product plans for passenger vehicles. However, it did not outline a definite production timetable or other detailed information.

FAW Group Corp refused to comment on official use of the brand, only saying that Hongqi branded cars meet all the regulations required for such use.

FAW's Chairman Xu Jianyi has previously said that FAW will launch several new products under the Hongqi brand this year, with one tailored for official use. The other models will include limousines for ceremonies and parades.

Statistics from the China Association of Automobile Manufacturers show that, although FAW has made a limited number of Hongqi cars for officials, no vehicles for private use have been sold in the past six months.

FAW's Shenzhen-listed unit, FAW Car Co, saw its shares rise by 1.65 percent to 9.22 yuan ($1.46) on Friday, while SAIC's shares gained 1.18 percent to close at 15.4 yuan apiece at the Shanghai Stock Exchange.

"In recent years, China has made great efforts to support the development of homegrown branded vehicles, as the world's largest automobile market has been a goldmine for nearly all foreign automakers," said an auto analyst, who spoke on condition of anonymity.

"No matter how much the use of Hongqi and Shanghai brands as official sedans will drive the two automakers' sales in the passenger car market, the move will definitely give confidence to more domestic automakers to further develop their products," said the analyst. "China has been the top vehicle market. To become one of the powerful automobile industries, we still need to rely on our own brands."

In a 2009 plan to restructure and revive the automobile industry, the State Council, China's cabinet, said that all levels of the Chinese government should ensure that domestically made cars should account for more than 50 percent of their official fleets.

Last year, the Chinese government's new official vehicle-purchasing policy said that the percentage of homegrown branded cars for official use should be increased.

Audi, the German luxury brand, has had huge success in the Chinese market since it was selected to provide official limousines in 1996.

Although the company said that no more than 10 percent of its total sales came from government purchases, its image of belonging to the "official class" has been a great driver of sales to both business leaders and for private use.

In 2011, Audi sold 309,888 units in the Chinese market, an increase of 37.4 percent over the previous year. Moreover, 252,000 units of its total sales were locally produced cars, with almost half coming from its flagship A6L model, which is also the most popular car for Chinese officials.

The success in China has also helped the German automaker overtake its rival Mercedes-Benz, owned by Daimler AG, to become the world's second-largest producer of luxury cars.

China Daily

Shanghai and Hongqi cars ready to hit the road again|Business |chinadaily.com.cn
 

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LiuGong Acquires HSW, Dressta

January 13, 2012

Warsaw, Poland – LiuGong Machinery Corp., the global construction equipment manufacturer based in Liuzhou, China, has finalized its agreement to acquire HSW (Huta Stalowa Wola) and its distribution subsidiary, Dressta Co., company executives announced. The agreement was signed by both companies' executives in Warsaw with celebration ceremonies following at the Baranów Sandomierski Castle in Baranów Sandomierski, Poland.

David Beatenbough, currently vice president of research and development for LiuGong, has been named chairman of the board of the new entity, LiuGong Machinery. The transaction is LiuGong's first outright acquisition outside its domestic market.

HSW is a respected producer of bulldozers and other crawler machines. It is one of only seven manufacturers worldwide producing a complete line of bulldozers, from 74 Hp to 520 Hp. The Polish government was the primary owner of HSW; it agreed in principal to sell to LiuGong earlier this year with the signing of a preliminary enterprise acquisition agreement in Beijing, China.

The formal contract ceremonies set at the castle and landmark in Poland reflected the importance of the transaction for both the companies and the two countries. The events, a signing ceremony and press conference, followed by a full banquet, and tours of HSW facilities a day later, were attended by high level government officials of both Poland and China. Presiding dignitaries included Poland's Minister of Treasury, Mr. Mikołaj Budzanowski; Chairman of the Poland Industrial Development Agency, Mr. Wojciech Dąbrowski; Sun Yuxi, the Chinese ambassador to Poland; Zeng Guang'an, vice chairman and president of Guangxi LiuGong and Krzysztof Trofiniak, chairman of the board and general director of HSW.

"I'm pleased to be a part of this historic occasion bringing two great companies, and two great brands together," said Zeng Guang'an. "This deal further solidifies the strong ties between our two countries, as Poland and China are long term trading partners and we have more than 60 years of excellent relations. This agreement signals a new era of expansion for both LiuGong and HSW."

HSW Chairman Krzysztof Trofiniak said the new partnership is the right move for both companies, leveraging Chinese efficiency and European technology.

"Both companies have a long and rich history, a passion for quality and excellence, and a deep desire to create success for employees, dealers and customers. Through this formula, we want to create opportunity for everyone who associates with us," said Trofiniak.

After announcing its intent to acquire HSW last March, negotiations for the agreement continued during the summer and fall, as LiuGong reached agreement regarding wages and job security with the Polish Workers Union, and completed the commercial terms of the transaction with HSW.

"Our gaining and retaining the technical knowledge and skills of the HSW employees was important to us in this agreement," said Beatenbough. "It is still important for us to remain competitive in our markets, and this agreement lets us do that."

In the transaction, LiuGong obtains core technologies that will help it advance some of its product designs; supplements LiuGong's already expansive product lines; provides a manufacturing and logistic footprint in Europe; and expands LiuGong's penetration into markets and products segments. LiuGong has among the most expansive array of product lines of any Chinese manufacturer, including wheel loaders, bulldozers, skid steers, forklifts, motor graders, excavators, rollers, drilling machines, truck mounted and crawler cranes, pavers, cold planners, concrete equipment and mining dump trucks.

The company is among the world's fastest growing CE firms. They sold 75,000 machines in 2011, and have posted an average of 40 percent annual revenue growth for the past six years running in overseas markets. It is ranked among the world's top 20 machine manufacturers.

As a leading exporter of machines from China, LiuGong has one of the largest global dealer networks of any of its Chinese competitors. The network consists of nearly 280 dealers in more than 95 countries, and is backed by nine subsidiary offices and 10 parts depots that deliver items within 48 hours. The company's strong dealers, subsidiaries and the customer-focused organization within headquarters give it a distinct advantage in providing the 24/7 support required by customers anywhere in the world.

The environment in China is known to be the toughest in the world in terms of run times between maintenance, harsh work environments, cost demands and rough operators. LiuGong machines use proven technologies and thrive in these rigorous settings; they are highly efficient, durable, easy to run and service and offer affordable value.

LiuGong runs 22 manufacturing plants in China, and one in India that adhere to Six Sigma quality methods. HSW will bring that count to 24. LiuGong supports a world class R&D function, and has a team of more than 13,000 employees, including over 750 engineers.

HSW was established in 1937 and is well known for manufacturing high-quality crawler dozers at its plant in the Podkarpackie province in southwestern Poland. HSW also produces wheel loaders, loggers, pipe layers, conveyer belt shifters, motor graders and machines customized for landfill applications, also for global markets.

David Beatenbough, one of the key architects of the acquisition, discussed how HSW will fit into LiuGong's plans and product lines.

"We will acquire proven technology within the bulldozer segment, as we will now own all the technology and designs, including undercarriages and driveline components," Beatenbough said. "HSW machines have a long and respected design history reaching back to International Harvester, which was an early developer for the track-type undercarriages that presaged construction equipment as we know it today. " He said LiuGong will benefit from HSW's experience with large model machines.

Beatenbough noted LiuGong will also benefit from HSW's plant location in central Europe, closer to its European customers, without undertaking a long, expensive construction project. The value of a skilled workforce experienced in the manufacture of quality construction equipment cannot be underestimated; much of the learning curve that would be required in a Greenfield project goes away. In addition, he said, LiuGong will gain HSW Dressta's distributor and dealer network, which is largely complimentary to LiuGong's global dealer network.

With the transaction now complete, LiuGong will move rapidly to integrate processes and production. A talent exchange will bring Chinese engineers to Poland, and send Polish engineers to China for training.

The first fast-track project will be an investment into production line equipment and re-tooling at the Podkarpackie plant, enabling it to produce LiuGong excavators and wheel loaders as quickly as possible. Though unable to provide specifics, Beatenbough said the plant is expected to increase its overall production capacity, which in turn, will increase its purchasing requirements for raw materials. Work on this begins immediately.

"It's important to note that we will be a part of the community in Poland", Beatenbough said. "We will be a contributor to the economy and a partner in the community. As markets grow, we will continue to expand there."

LiuGong will move rapidly to leverage the combined distribution network to bring the expanded product line to dealers – HSW products to LiuGong dealers, and LiuGong products to HSW/Dressta dealers. Relative to brand names, Beatenbough said, for the near term all three brands will be retained in certain markets.

"HSW is known for its sophisticated process methodologies, while LiuGong prides itself on its flexibility, speed and adaptability. When we put the best of these two philosophies together it's a powerful combination," Beatenbough said.

LiuGong Acquires HSW, Dressta - Industry News - Site Prep
 

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Shanghai offshore wind farm claims world first

Last Updated:2012-02-03

Source:Xinhua

Sinovel, China's largest wind turbine maker, will put a set of 6-megawatt (mw) wind turbines into operation off the coast of Shanghai in what is claimed to be the world's first large-scale commercial application of such powerful offshore wind turbines. Sinovel will supply Huaneng Renewables, a leading Chinese wind farm developer, with 17 units of 6-mw offshore wind turbines in the first stage of a pilot offshore wind farm in the Lingang sea area of Shanghai, Sinovel said on Thursday. "This will be the first large-scale commercial application of 6-mw offshore wind turbines in the world," said Tao Gang, Sinovel vice-president. Tao described the move as a milestone in tapping offshore wind power. On October 8, 2011, Sinovel installed an independently developed 6-mw prototype, so far the largest in Asia, in Sheyang county, in east China's Jiangsu province.

In 2010, the company won a public tender to supply 34 units of 3-mw offshore wind turbines to the Shanghai East Sea Bridge Offshore Wind Farm, the first pilot commercialized offshore wind farm in the country. Sinovel won the Lingang offshore wind project by forming an alliance with Huaneng Renewables to defeat four rival teams in a public tender at the end of 2011. The Lingang offshore wind farm is the second pilot offshore wind power project in Shanghai. With an investment of 1.76 billion yuan (279 million U.S. dollars), it will be completed in September 2014.

In its 12th Five-year Plan period (2011-2015), China will accelerate the development of offshore wind power, as the country's best sites on land have already been taken. China has up to 750 gigawatts (gw) of exploitable wind resources in the sea, three times that of its land-based wind resources. These offshore wind resources are found off the eastern and southern coasts, near large economic centers with growing demand for power and diminishing supplies of fossil-energy resources. According to the National Energy Bureau, China will construct 5 gw of offshore wind projects by 2015, representing five percent of its total wind installed capacity.

To grab a slice of the promising market, other Chinese wind turbine makers are hastening their paces to develop large-capacity offshore wind turbines. In January, Guodian United Power announced it had produced a 6-mw prototype. Goldwind expects to install a 6-mw prototype in June this year.



 

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Xinjiang to build powerful electricity transmission line

Updated: 2012-02-04 14:03

(Xinhua)

URUMQI - Chinese authorities plan to build a long-distance power transmission line with the country's highest voltage level in far western Xinjiang Uygur autonomous region.

The high voltage direct current (HVDC) transmission line of plus/minus 1,100 kv -- so far the highest voltage level in China -- will start from a coal field in northern Xinjiang and end in southwestern metropolis of Chengdu, said Lu Jian, deputy director of the Development and Planning Department under the State Grid Corporation of China, at a meeting in Xinjiang's regional capital of Urumqi Friday.

About 35 billion yuan ($5.6 billion) will be put into the construction of the 2,600-km-long line, which will go through the vast regions of Xinjiang, Gansu, Qinghai and Sichuan, Lu said.

The project is expected to begin in August and be put into operation in 2015, said Yang Qing, vice general manager of the State Grid.

China's large energy reserves are mostly distributed in the western and northern regions, which have a long distance of more than 2,000 km from the load centers of power network in eastern and central regions.

Compared with alternating current transmission technology, HVDC transmission excels in long distance, low loss and low cost, Lu said.

China has succeeded in building two long-distance HVDC transmission lines of plus/minus 800 kv and experts hope to upgrade the technology and equipment in the industry through the new Xinjiang project, he said.

It is predicted that 24 new HVDC transmission lines will be built in the next decade, with a total investment of close to 300 billion yuan:thumb:, industrial researchers have said.

Xinjiang to build powerful electricity transmission line | Industries | chinadaily.com.cn
 

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FEBRUARY 9, 2012.

China's Inflation Rises Faster Than Expected

BEIJING—Inflation in China accelerated unexpectedly in January because of higher food prices during the Lunar New Year holiday.

The pickup in inflation breaks a five-month trend of moderating price increases, raising concerns that Beijing may not be able to loosen policy aggressively to support growth.

Nonetheless, economists said they expect inflation to continue to decline in the months ahead, after the holiday effect has faded.

"Food price inflation, in particular, saw a big jump higher in January," Royal Bank of Canada economist Brian Jackson said in a note. "Nevertheless, the downward trend in underlying price pressures looks intact, and we would expect headline inflation to move lower again in February as the Lunar New Year impact reverses."

The consumer-price index rose 4.5% from a year earlier in January, up from a 4.1% rise in December. Economists polled earlier by Dow Jones Newswires had expected CPI to rise by 4.1% in January, unchanged from December. Meanwhile, the producer-price index, an indicator of upstream inflation pressures, continued to moderate. The PPI rose 0.7% from a year earlier in January, down from a 1.7% rise in December and just slightly above expectations of a 0.6% increase.

"The central bank may not loosen policies as fast or on as large a scale as the market expected," said HSBC economist Ma Xiaoping.

Nonetheless, she said she still expects the central bank to cut the required reserve ratio for banks this month, which would free up additional money for lending.

Food prices rose especially quickly, likely because of elevated demand during the weeklong Lunar New Year holiday, which fell in January this year but in February last year.

Food prices were up 10.5% from a year earlier, compared to a 9.1% rise in December. Nonfood prices rose 1.8%, compared to 1.9% in December.

"The CPI number was likely distorted by the New Year effect. The PPI number is still on a downward trend, so we think inflation will continue to subside," said HSBC's Ms. Ma.

On Tuesday, in a sign that Chinese authorities may be growing more comfortable with the inflation situation, the government raised its ceilings for retail gasoline and diesel prices by around 3%. Beijing benchmarks retail fuel prices to international oil prices, but sometimes delays adjustments when it fears increases could add to inflationary pressures.

Also on Tuesday, the People's Bank of China said it will strengthen support for building affordable housing, and work to satisfy first-time home buyers' demand for mortgage loans.

Although the central bank's statement contained no details about policy initiatives, some analysts interpreted it to mean the loosening of some controls on the property sector that have brought down prices and depressed sales. Shares in Chinese property developers rallied following the statement.

China's Inflation Rises Faster Than Expected - WSJ.com
 

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Direct yuan-yen trading helps stability

Updated: 2012-02-09 07:55

HONG KONG - Chinese and Japanese efforts to bypass the dollar by directly exchanging yen and yuan will improve financial stability in Asia, Kiyohiko Nishimura, a deputy governor of Japan's central bank, said on Wednesday.

Financial institutions can reduce settlement risks if the dollar is not needed as an intermediary currency, Nishimura said in a speech posted on the Bank of Japan's website.

"As such, the development of financial and foreign-exchange markets denominated in yen and yuan is an important issue for financial stability, not only for Japan and China but also for the rest of Asia," Nishimura said.

The world's second- and third-largest economies announced plans to promote direct yen-yuan trading in December after a meeting between Premier Wen Jiabao and Japanese Prime Minister Yoshihiko Noda in Beijing.

A direct and liquid market for exchanging the currencies will also reduce transaction costs, Nishimura said.

The Chinese currency on Wednesday approached an 18-year high against the dollar ahead of a visit by Vice-President Xi Jinping to the United States and as Greece negotiated a rescue.

The yuan rose 0.16 percent to 6.2947 by 1:14 pm local time.

Efforts by China to give its currency a broader global role and reduce dependence on the dollar are being limited by the nation's capital controls.

"It would be implausible to assume that yuan internationalization will be further developed without significant capital-flow deregulation," Nishimura said.

"Strict" regulations on inflows to China "have gradually become an obstacle to the further development of offshore yuan markets", he said.

In his speech, the official also highlighted the potential for Japanese government bonds to be a benchmark for Asian markets, playing the same role as German debt in Europe.

Yen-yuan exchange market touted | The Japan Times Online
 

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