China Plans to Alter Resource Tax Structure

May 24 – China plans to alter the tax structure on the profits made off energy products according to a work conference last Thursday in Xinjiang.

The new structure, which will first be tested in a pilot program in the province, will consider resource prices as a factor when levying taxes, compared to the current structure which is based on the actual output. Initial predictions suggest that the tax rate is likely to be 3 percent to 5 percent for resource products. Read the rest of this entry »

Sinopec to Purchase Angolan Oil Assets for US$2.46 Billion

Mar. 30 – The China Petroleum and Chemical Corp., or Sinopec, announced its first overseas asset acquisition on Monday, agreeing to acquire deep-water oil assets in Angola through the purchase of a 55 percent stake in Sonangol Sinopec International Ltd for US$2.46 billion.

As Asia’s largest oil refiner, Sinopec is actively seeking overseas investments in oil and gas resources to meet China’s increasing energy demands. The deal is Sinopec’s first overseas asset acquisition, aiming to “further expand Sinopec’s upstream business, and Sinopec will have access to overseas oil and natural gas markets,” according to chairman of the board Su Shulin. Read the rest of this entry »

China Briefing Partners with China Daily and IBISWorld to Provide China Industry Reports

Mar. 2 – China Briefing has partnered with China Daily and the market research firms All China Marketing Research and IBISWorld to provide a series of industry reports covering a number of sectors

Written by dedicated researchers from China Daily and ACMR-IBISWorld, these reports are listed on the Asia Briefing Bookstore and include the following titles:

China Daily
AutoChina
China Banking
China Energy Read the rest of this entry »

Sinopec Under Fire as Hong Kong Deserts Mainland Fuel

Photo: Rolfmueller/Creative Commons License Jan. 6 – China Petroleum & Chemical Corporation or Sinopec is under investigation as Hong Kong drivers look for alternative fuel suppliers following reports of breakdowns related to adulterated liquefied petroleum.

The state-owned company provides 75 percent of territory’s liquefied petroleum gas (LPG) needs including fuel for around 18,000 taxis and 2,000 minibuses. Hundreds of taxis and minibuses have broken down in the last few weeks allegedly due to dirty LPG sold at Sinopec filling stations reports Bloomberg. Read the rest of this entry »

China Industry: Jan. 5

Jan. 5 – This is a regular series of relevant industry news from around China.

Air transport
Taiwan-based China Airlines intends to launch a flight from Taipei to Miyazaki, Japan in 2010. The air carrier will fly on this route two times a week on Thursdays and Sundays. With the new route, China Airlines is boosting the number of its weekly flights to Japan to 81. The company will operate flights to eight destinations in Japan: Sapporo, Tokyo, Nagoya, Osaka, Hiroshima, Fukuoka, Miyazaki, and Ryukyu. Read the rest of this entry »

Africa to Get US$10 Billion in Loans from China

Nov. 9 – China has committed to providing US$10 billion in concessional loans to African countries and cancel debts as a way of increasing its role in the continent during the opening of the Forum on China-Africa Cooperation yesterday.

The loan package will allot a US$1 billion special loan for small and medium-size African businesses. During the last forum in 2006, China had also pledged US$5 billion in loans and canceled the debt of 31 African countries. “We will help Africa build up its financing capabilities… we will provide US$10 billion for Africa in concessional loans,” Chinese Prime Minister Wen Jiabao was quoted by the Agence France Presse during the forum. Read the rest of this entry »

China Industry: Sept. 10

Sept. 10 – This is a regular series of relevant industry news from around China.

Solar power
Shi Zhengrong, founder and chief executive of Chinese solar giant Suntech Power backtracked on last week’s statement that his company had cut solar panel prices in the United States below production cost, saying he misunderstood a reporter’s question.

The remarks, quoted by the New York Times, sparked a controversy in the solar market as it appeared the firm was selling at a loss to buoy up its presence on the U.S. market as the industry is dogged by oversupply and sliding prices. Read the rest of this entry »

PetroChina Signs US$41 Billion Gas Deal with ExxonMobil

Aug. 19 – China’s PetroChina has made its largest trade yet with a US$41 billion liquefied natural gas deal with American company ExxonMobil.

Under the deal, PetroChina will buy 2.25 million tons per year of gas from the Gorgon LNG project located in Western Australia for 20 years thus becoming the largest buyer in the project.

This is also Australia’s biggest trade deal with China so far. “It’s a statement about the nature of our two economies and the fact that Australia is important to China, just like China is important to Australia,” Australian Resources Minister Martin Ferguson told Reuters in Beijing.

Read the rest of this entry »

World Bank Raises China’s Growth Forecast to 7.2 Percent

Jun. 18 – In its China Quarterly Update, the World Bank changed its economic growth forecast for China from 6.5 percent to 7.2 percent on account of its stimulus package fueling an investment boom.

While China’s economy has continued to feel the brunt of the global crisis, very expansionary fiscal and monetary policies have kept the economy growing respectably, according to a World Bank statement.

The agency warned though that it was still not sure if a sure recovery was on the way although Beijing’s plan to offset plunging exports by investing on public works seem to be working to support economic growth.

A look at the growth shows that government-influenced investment has risen while market-based investment has slowed. According to the report, consumption has held up well as well as imports although exports have continued to drag growth.

Read the rest of this entry »

China to Revise FDI Procedures

Apr. 16 – China will further revise its foreign direct investment (FDI) approval procedures in a bid to make the process efficient and channel more investments to the western and central parts of the country.

Despite China’s FDI inflow slowing down for the sixth consecutive month, March figures indicate that the economy may be picking up.

FDI inflows for March was down 9.5 percent from a year earlier US$8.4 billion in sharp contrast to a 15.81 percent decrease in February and 32.67 percent drop in January. Read the rest of this entry »

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