Economy and Politics

China’s Provincial Outbound Direct Investment in 2011

By Julia Gu

Apr. 6 – China’s Minister of Commerce recently called for and chaired a special meeting where members not only discussed standard administrative methods and development plans for foreign trade, but Chinese outbound direct investment (ODI), as ODI has become a new, growing part of the economy.

According to the state news agency, People’s Daily, China aims to balance its “go global” and “opening up” initiatives by accelerating regional cooperation and economic development as well as overseas investment.

The Ministry of Commerce reports that China’s non-financial ODI grew 1.8 percent in 2011 to US$60.07 billion with direct investments from Chinese businesses in 3,391 enterprises across 132 countries and regions around the world. Continue reading →

Posted in Business, Economy and Politics, FDI and Foreign Trade | Tagged China, China FDI, China M&As, China ODI, China SOEs, Outbound Direct Investment | Leave a comment

Chinese Airlines Raise Fuel Surcharge Fees

Apr. 5 – Due to rising oil prices, Chinese airline companies have increased fuel surcharge fees for both domestic and international fights.

For domestic routes, the fuel surcharge fee has been increased by RMB10 per flight beginning April 5, 2012. After the adjustment, passengers are now subject to an RMB80 fuel surcharge for flights of less than 800 kilometers and RMB150 for longer routes, instead of the previous surcharges of RMB70 and RMB140. It is the second time that Chinese airlines have increased fuel surcharge fees for domestic flights since the beginning of March 2012. Continue reading →

Posted in Aviation, Business, Economy and Politics | Tagged Air China, China Airlines, China Aviation, China Eastern Airlines, Fuel Surcharge, Hainan Airlines | Leave a comment

China Signs Bilateral Agreements with Ireland and Indonesia

By Xiaolei Gu

Apr. 3 – China and Ireland announced a mutually beneficial strategic partnership during Irish Prime Minister Enda Kenny’s visit to Beijing last week, while the two sides also signed a number of agreements to promote cooperation in trade, investment, science and technology. Continue reading →

Posted in Business, Economy and Politics | 1 Comment

U.S. Exports to China Hit US$100 Billion for First Time

This article includes complimentary downloads of the complete USCBC report and a copy of the China Business Handbook

Mar. 29 – The U.S.-China Business Council has just issued a report detailing the rise of U.S. exports to China, which have passed the US$100 billion milestone for the first time. According to the report, American exports to China reached a record US$103.9 billion in 2011, with 30 U.S. states now counting China among their top three export markets. As a buyer of U.S. goods, China ranks behind only Canada and Mexico—two immediate neighbors with whom the United States has a regional free-trade agreement.

“Exports to China are vital to America’s economic health and create good jobs for American workers,” said USCBC Vice President Erin Ennis. “Between 2000 and 2011, total U.S. exports to China rose 542 percent, from US$16.2 billion in 2000 to a record-breaking US$103.9 billion in 2011. In addition, U.S. exports to China recovered faster after the recession than exports to anywhere else in the world. Clearly, China is a market that is important to U.S. companies’ bottom lines, even in tough economic times.” Continue reading →

Posted in Business, Economy and Politics, FDI and Foreign Trade, Markets | Tagged U.S.-China Business Council, U.S.-China Relations, U.S.-China Trade | 3 Comments

Why China’s Consumer Development is Assured

Lewisian turning point impacts upon China demographics with India close behind, meaning sales opportunities in China exist as never before

Op-Ed Commentary: Chris Devonshire-Ellis

Mar. 27 – China is about to become a great market for international businesses to sell to. That’s quite a statement, and I can recall similar proclamations being bandied about 20 years ago during the early days of Deng Xiaoping’s reforms, and then 10 years later when China eventually joined the WTO. Yet, as many a wise man noted – unless you were in the chopstick business, there weren’t actually a whole bunch of affluent Chinese looking to buy goods and services. That is now changing. But why? Continue reading →

Posted in Business, Economy and Politics, FDI and Foreign Trade, Manufacturing, Markets, Retail | Tagged Arthur Lewis, China Consumers, China Consumption, China Demographics, China Market, India Demographics, Lewisian Turning Point | 3 Comments

China-Australia Agree on Bilateral Currency Swap Agreement

Mar. 23 – The central banks of China and Australia signed a currency swap agreement yesterday that will allow RMB200 billion (A$30 billion) worth of local currencies to be exchanged between the two countries over three years.

The purpose of the agreement, according the People’s Bank of China, is to help strengthen financial cooperation between the two sides, boost bilateral trade and investment, and promote regional financial stability. Continue reading →

Posted in Economy and Politics, Finance, Tax and Accounting | Tagged Australia, China-Australia Relations, Currency Swap Agreements, People's Bank of China, Renminbi, RMB Internationalization | Leave a comment

China and Inter-American Development Bank Announce US$1 Bln Investment Fund

By Gregor Hastings

Mar. 22 – China and the Inter-American Development Bank (IADB) have recently announced plans for a US$1 billion investment fund to help develop Latin American and Caribbean markets.

The IADB and China’s state-owned Export-Import Bank of China will each make investments of $150 million and the remaining funds will be raised from the market. The purpose of the fund is to finance public and private sector projects in addition to making equity investments in the region.

“This new platform will promote stronger investment ties between China and Latin America and the Caribbean and will help our region overcome some of the most important development challenges,” said IADB President Luis Alberto Moreno. Continue reading →

Posted in Business, Economy and Politics, FDI and Foreign Trade | Tagged China Foreign Policy, China Politics, China-Africa Relations, China-Latin America Relations, Export-import Bank of China | Leave a comment

U.S. Imposes Tariffs on Solar Panels from China

Mar. 21 – The U.S. Commerce Department announced that it would impose a 2.90 percent to 4.73 percent tariff on Chinese-made solar panels on Tuesday after a preliminary investigation showed that Chinese manufacturers have been benefiting from unfair government subsidies. Additional tariffs could occur in mid-May when the Commerce Department determines whether to impose anti-dumping duties on Chinese solar-panel manufacturers.

A tariff on Chinese-made solar panels has been anticipated by industry insiders for some time now, however the expected tariff was generally much higher than the one that has actually been realized. According to Tuesday’s ruling, Suntech Power Holdings Co., China’s leading manufacturer of solar technology products, will be subject to a specific tariff of 2.9 percent, while a 4.73 percent tariff will be imposed on Trina Solar. All other Chinese manufacturers of solar panels will be levied a 3.61 percent duty. Continue reading →