July 31 - The long awaited bridge planned to connect Zhuhai in Mainland China to Hong Kong via Macau is likely to be funded by the regional governments if a new proposal is approved by the State Council.

The giant project—a proposed series of bridges and tunnels that would connect the west side of Hong Kong with Macau and the mainland city of Zhuhai—is expected to cost USD$2-3.7 billion and feature a 29 kilometer bridge. Upon completion, the bridge would become a landmark of the region, comparable to the Lake Pontchartrain Causeway in New Orleans, the world’s longest bridge at 38.4 kilometers. A decision is expected early next week. (more…)

July 11 - Industry experts are predicting that sales of residential houses in China’s southern city of Shenzhen may slip further to prices found 10 years ago.

During the first half of this year, housing prices decreased by 36 percent to an average of RMB11,014 per square meter compared to October’s RMB17,350 per square meter.

Of Shenzhen’s six districts, Bao’an reported the biggest drop in May, with the average housing price reaching RMB10,418 per square meter, down 7.3 percent from last month. In comparison, the average housing price in Longgang District decreased by fell only 2 percent during the same period to RMB8,910 per square meter.

(more…)

SHANGHAI, July 7 –Shanghai reported blackouts on Monday as summer temperatures continued to rise. The city’s power network is struggling to meet electricity demands brought by increased use of air-conditioning.

According to sources, the city’s electrical grid is fully loaded with all backup power generation systems are in use. On Saturday, city temperature reached 38.8 degrees Celsius, the hottest July 5 on record.

Provinces surrounding Shanghai were also not spared of blackouts that did not allow them to send spare capacity to the city.

The Shanghai Meteorological Bureau says that there will be temperatures of 35 degrees on at least three days this week. Last June, the State Electricity Regulatory Commission warned that the country would experience serious power shortages in summer.

(more…)

May 27 - AmCham South China released their annual report business conditions in the Greater Pearl River Delta region last month, stating that business in South China remains excellent (click on picture to download report).

The reports, conducted by AmCham South China in partnership with Hewitt Associates and Dezan Shira & Associates, collected the experiences and insights of 419 international and local companies in Guangdong, Guangxi, Fujian and Hainan according to the chamber’s press release.

“I believe that the most important thing about this report,” said AmCham South China President Harley Seyedin, “is that it is only the broadcast medium for a message coming directly from the international business community.”

Nine out of ten participating companies indicated that they were already profitable, or would be within two years or less, and vast amounts of these profits are reported as being reinvested in China, with approximately 23 percent of companies indicating that they plan to invest in excess of US$50 million in China over the coming three years, and half of that number planning to invest in a US$25 million or more—each—in that same time frame. (more…)

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…)