May 6 - The provincial government of Guangdong province has unveiled plans of providing 1.2 million jobs for 2008. The plans will also provide wider coverage for migrant workers like social insurance, endowment, medical, unemployment, injury at work, and maternity insurance to name a few.

Fifty percent of the target 1.2 million jobs are expected to be newly-generated, a 28 percent increase from last year’s figure.

Lin Jingqing, director of the labor relations division of the provincial labor and social security department, told China Daily: “More people will be included in our social security system this year, embodying the Labor Contract Law implemented by the central government at the start of the year.”

For 2007, Guangdong’s 10.55 million resident workers and 13.5 million migrant workers were provided with work and medical insurance - one-third of China’s total. This year, migrant workers with work insurance should increase by 13.3 million while those with medical insurance will jump by 13.6 million. (more…)

GUANGZHOU, April 14 – According to the China Import and Export website, registration regulations for foreigners to attend the 103rd session of the annual Canton Fair have been revised.

In order for foreigners to register, a new five step process has been implemented in the attempt to make the Canton Fair a safe trading environment for all attendees according to information provided by the event’s organizers.

The new and updated procedure is as follows: (more…)

HONG KONG, April 11 - The escalating price of jet fuel has been pinpointed as the main culprit for the collapse of long-haul budget airline Oasis Hong Kong. Another factor that contributed to strained company finances was the decision to buy instead of leasing the aircrafts. According to the International Air Transport Association, in the past year alone, fuel prices have surged more than 60 percent.

In an open letter Oasis founders Raymond and Priscilla Lee explained, “As oil prices sharply increased, the fuel costs took up the majority of our budget.” (more…)

Fujian, Zhejiang and Northern Vietnam main new destinations for low end sourcing / manufacturing

SHENZHEN, April 11 - South China, long the country’s epicenter of low-end manufacturing and sourcing, is seeing a massive slowdown in new investment as companies look to move further inland and elsewhere.

Dezan Shira & Associates, which has maintained offices in the region for 16 years, reports that its clients’ foreign direct investment (FDI) in South China has seen a steep decrease in the first quarter of 2008. The findings, part of the firm’s first-quarter national assessment of FDI in China, represent the first large-scale decline in the region, with Guangdong province among the hardest hit. Inbound FDI to Shanghai and the Yangtze River Delta, or the Beijing-Tianjin corridor, remains strong.

“What we are seeing in South China is a massive change in the nature of the business environment here,” says Chris Devonshire-Ellis, the firm’s senior partner.

The flagging investment, says Devonshire-Ellis, comes amid a government push to attract added-value businesses and more hi-tech industry, including the development of the Shenzhen Hi Tech Zone. However, new foreign investors in high-tech by and large haven’t yet seen the opportunities here and remain aloof, opting instead for Shanghai and Hangzhou. (more…)

By Andy Scott

Mar. 31 - The third meeting of the Greater Mekong Subregion (GMS) opened in Vientiane, Laos on Sunday, bringing together the prime ministers of Cambodia, China, Laos, Myanmar, Thailand and Vietnam.

The ministers are meeting to discuss ways to deepen economic cooperation between their countries. They will also focus on poverty reduction, sustainable development, and expanding regional transportation and communication links.

The GMS was established in 1992 by the Asian Development bank as a means for promoting economic and social development, irrigation and cooperation within the six countries linked by the 4,200 kilometers of the Mekong River.

The river, which starts in Southern China and forms the border between Laos and Myanmar, weaves its way though Northern Thailand and Laos before cutting through Cambodia and emptying into the ocean in Southern Vietnam. (more…)

HONG KONG, Feb. 27 – Hong Kong eliminated the duty on imported wines today, creating cheer amongst much of the population relishing a return to the past as an Asian wine lover’s paradise.

In his annual budget speech, Financial Secretary John Tsang announced that the duty on alcohol would be eliminated, the cuts to take place immediately. The duty had been 40 percent.

As the duty on alcohol is paid on the wholesale cost of wine, Jeanette Paterson, general manager at Watson’s Wine Asia, Hong Kong’s largest wine supplier, said consumers would actually pay around 22 percent less in shops and bars. “We will be phasing our price cuts in three stages so that by next week, all shops will be selling wine at the new prices,” Paterson said. The deal is good for consumers but not for suppliers, she said, who will now feel compelled to sell off stock on which they had already paid 80 percent duty at a discount. (more…)

HONG KONG, Feb. 27 – In his annual budget speech, Financial Secretary John Tsang announced a host of changes amounting to HK$75 billion tax reductions.

While legislative amendments are required for implementing each of the relief measures proposed in the budget, the changes should provide a boost to the territory’s economy. Here’s a look at some of the major changes:

Individuals subject to Salaries Tax or Tax under Personal Assessment
Individuals subject to Salaries Tax or tax under Personal Assessment will enjoy a reduction of 75 perrcent of the final tax for the year of assessment 2007-08, subject to a ceiling of HK$25,000 per case.

The basic allowance and single parent allowance will be increased from HK$100,000 to HK$108,000, and married person’s allowance from $200,000 to $216,000.

Tax bands will be widened from HK$35,000 to HK$40,000 each.

Businesses subject to Profits Tax
Businesses subject to Profits Tax will enjoy a reduction of 75 percent of the final tax for the year of assessment 2007-08, subject to a ceiling of HK$25,000 per case. (more…)

Chinese New Year passenger travel discouraged in favor of energy supplies – more heavy snowfalls forecast 

February 4th  - China continues to have problems with its worst winter weather for 50 years as further heavy snow hit already stressed cities and towns in much of the country. With the military already deployed and tanks on the roads in some areas to assist with snow and debris clearance, power shortages threaten anew as raw materials such as coal and coke have been delayed in getting to power plants. Rail rolling stock has been diverted away from the normal passenger transit duties as this time of year, with Chinese New Year’s eve just 36 hours away, in order to allow reasonable chances of the power supply being maintained. Up to 60% of all passengers are now expected to stay put rather than travel back to their homes, effectively missing Chinese New Year celebrations with their families. A record number of over 42,000 rail container trucks laden with coal and coke were transported just today (Monday) alone to ensure national power supplies could be maintained – over 25% more than the norm at this time of year. Both army and civilian maintenance crews were also working around the clock to repair broken or damaged power lines in Guangdong, Guizhou and Henan Provinces, where millions of people have been without power for over a week.

Several energy intensive metal producing plants have also been ordered to shut down to conserve fuel, with the aluminum and steel industries worst hit, a situation reflected in the world’s trading bourse, the London Metal Exchange, where futures contracts have shown sharp increases in value and the daily trading rate have shot up by more than 10% in the past few days for these commodities as shortages loom. The supply chain knock-on effect has also led to several auto manufacturers in China to either close or reduce capacity as sheet metals are not reaching their production lines. Nissan, Honda, Toyota, Ford and Mazda have all closed some or all of their plants.   (more…)

By Andy Scott

SHANGHAI, Jan. 29 - The biggest winter storm to hit many parts of eastern China in 50 years brought down buildings, closed train stations and left millions stranded throughout the country just days ahead of the biggest holiday season.

One day after the storm killed at least a dozen people and brought much of central and eastern China to a halt; it continues to wreak havoc on the country’s road, rail and airport networks. Most flights out of Hongqiao Airport were delayed or canceled for a second straight day, while traffic slowly returned to the region’s rail and roadways. Trains out of Shanghai continued to see major delays of up to 10 hours today and travelers found themselves having to make the best of a bad situation, often transferring tickets and taking round-about routes to reach destinations in the Yangtze River Delta. (more…)

This is the first in a series in which we look at China’s borders and the relationships that Beijing is building with the 15 countries that share its borders. As China has grown in the last 30 years, so have the often complicated relationships it has with its many varied neighbors. In this article, we take a look at Vietnam.

China paving its way into Southeast Asia
By Joyce Roque

Dec. 10 - If East Asian growth figures were taken into account and translated into basketball terms, China would clearly be its towering center with Vietnam hovering not far behind as its nimble point guard with 10.8 percent and 8.2 percent growth figures respectively slated for 2008, according to the World Bank.

Of late, China’s ambitions have led it to carefully plot economic alliances with its Asian neighbors to jockey its ascent to the path of becoming a superpower. It was only natural that it should make its most strategic moves to penetrate mainland Southeast Asia through expanding its relations with Vietnam. (more…)