China＇s Investment in 2010 H1

Attracting foreign investment
In the first half of 2010, the number of the newly established foreigninvested enterprises was 12377, an increase of 18.8%; the actual use of foreign investment was US$51.43 billion, up 19.6%. Although the absorbing of foreign investment has increased for consecutively 11 months, the overall scale is still lower that the same period of 2008, before the world financial crisis. We can see following features in the foreign investment to China in the first 6 months in 2010.     

Foreign-branded Seeds Seek Expansion in China

Influx of foreign seed firms Data shows that China has become the second biggest demander of seeds in the world, with the annual needs of 30 billion kg, which is worth as high as RMB 50 billion. Since China's entry into the WTO and the implementation of the Seed Law since 2000, foreign seed firms are rushing into China in succession, fighting for the vast market.Since early 1990s.the leading seed giants, such as Monsanto, Pioneer Hi-Bred and Syngent, have made their way to China, striving to grab a greater share in the growing market.     

Future Remains Bleak

Chinese government has recently introduced more flexible policies on foreign investment,which can help to partially restore the development of foreign inflows in China but can hardly resume its previous growth speed.Bian Weihong,a senior analyst from the Institute of International Finance of the Bank of China,believed that,given the current conditions,the situation for foreign investment absorption in the second half of the year will still stay complicated.Bian also pointed out that in the previous phase,as the European debt crisis stops deteriorating and the U.S.     

英文摘要

Change Has Come The impact of the global financial woes still runs. China＇s imports and exports slowed down remarkably as the world economy was decelerated by the European debt crisis and the shrinking market. The country＇s foreign trade grew at only 6.2% in 2012, far below the expected rate of 10%.     

YUAN POLICY,Good for China,Bad for the World？

As we can learn from this world financial crisis,it seems to be an acceptable fact that China can not be regarded as a heavy victim.On the contrary,in the opinion of many foreigners,China is greatly benefiting from this financial crisis by holding its exchange rate fixed as a heavy victim. On the contrary, in the opinion of many foreigners, China is greatly benefiting from this financial crisis by holding its exchange rate fixed against the dollar, which obviously fuels its export an important engine for economic growth. Statistics show that China has maintained strong economic growth in the first three quarters of 2009,     

Export Decline Leads to a Weaker RMB？

Since the beginning of 2008, rising prices of raw materials, labor cost and RMB value have caused sharply decreased profits of export enterprises in China. And the last straw seems to be the plunging demand in foreign markets which results from the financial crisis. Hit by the dual-shock, a large number of small and medium-sized export enterprises have Closed down. Apparently export as an important driving force for China＇s economic growth is now faced with an unprecedented crisis.     

Let China Arbitration Advance towards the World Further and Let the World Understand China Better

It is a great pleasure for me, as the president of CIETAC andCMAC, to write a few words for the first issue of the Arbitration inChina, to introduce China arbitration, especially foreign related arbitration in China (or we may say international commercial arbitration) into world.Arbitration in China has developed a great deal as the same asthat of China economy since China has adopted the open and reform policy in 1979, especially in the mid of 1990th, China international Economic and T…     

China Expanding Tertiary Industry's Foreign Capital Utilization and Relevant Policies

In the 1980s China had numerous restrictions on the utilization of foreign capital by the tertiary industry. Some areas, such as commerce, trade, and air transport were listed as forbidden zones for foreign investment. Along with the further deepening of our reform and opening to the outside world in recent years, China has gradually widened the field attracting foreign investment, lifted, where appropriate, the restrictions on foreign investment in the tertiary industry, and adopted an active but prudent policy     

IM ＆ EX, A ROCKY ROAD

Subprime mortgage crisis, which was triggered by a dramatic rise in mortgage delinquencies and foreclosures in the United States,has interrupted china＇s peaceful rise and has major adverse consequences for banks and financial markets around the globe. Although the direct impact of the subprime crisis is rather small to china＇s economy since the exposure of several national banks to the U.S. subprime lending market is relatively limited, there is no denying that the U.S. subprime crisis has been dragging down world＇s major stocks for months and making it difficult for china＇s foreign trade. It is predictable that the impact of this financial tsunami will shed its shadow on china＇s economy sooner or later. Experts are of the view that China may not be directly hit by the crisis as a result of its strong economic fundamentals, limited exposure to this particular variety of assets,     

Seeking China Capital for Investment in Iran Oil Refining

Influenced by the financial crisis, the overall bilateral trade volume between China and lran decreased .by 39% in the first quarter of 2009;however, the volume of Iran＇s exported crude oil to China has increased by 88% compared with the same period last year up to May of 2009, totaling 308.8 million tons. Iran, as the world＇s No.5 crude exporter, replaced Saudi Arabia as China＇s largest oil supplier. At the same time, China, as the world＇s No.2 oil consumer, now imports half of the crude oil it consumes, and has become Iran＇s third largest customer.     

The Ongoing Year Will Be Much Better than 2020 in All Senses

During the Spring Festival of the Year of the Ox,China’s Foreign Trade invited several foreign commercial officials and leader from foreign companies to share their points of view on the changes seen in the last year,as well as their New Year’s wishes and their expectations for 2021.In 2020,the pandemic influenced everyone in the world,as summarized by Victor Cadena,Vice Chairman of the Mexican Chamber of Commerce in China:“Our organization and member companies has been influenced by COVID-19 in different ways,as has everyone.”According to Global Economy Outlook,the global economy contracted by 4.4%in 2020.All companies were faced with the challenge of how to survive the global pandemic.A survey released by the Ministry of Commerce shows that nearly 60%of foreign companies in China had an optimistic attitude.Some of our interviewees have lived in China for more than ten years;they believed the policies and measures implemented by the Chinese government were effective.However,they also found that business opportunities continued to emerge,through online meetings,data application,and innovations in medical health.The details are as follows.     

Shanghai Highlight： World Expo

The proposals regarding the Shanghai Expo attracted the World Expo committee great concern. During the two sessions, the Shanghai World Expo organizer promised that they will play more active role in holding the expo.Though the world is suffering the global crisis, the organizer believed that this is a rare opportunity and as the World Expo 2010 to be held in Shanghai could help China overcome economic difficulties and lift the world out of the crisis shadow.     

Expert Views

The U.S.debt crisis warns China to reduce its foreign reserve Tne downgrading of the U.S.'s credit rating by the Standard & Poor is a good thing,which delivers a heavy blow against the deficit budget policy. It reminds people that there is no free lunch in the world and also highlights the rating agency's independence.It also makes us realize the urgency of balancing the international payments and reducing foreign reserves.     

Proactive Continue,More Weight on Tax Reduction

In battling against the current global economic crisis, fiscal and taxation policies, as the most important means to intervene the economy, has been the major approach for the governments throughout the world to offset impact of the crisis.China, as the economy with the fastest growth, has received much attention, and China's fiscal and taxation policies which contributed much to the strong economic recovery,in particular, is the very concern of the public.So, what is the trend of the fiscal and taxation policies during 2010?     

英文摘要

China＇s foreign trade suffered throughout 2009 in coping with the global financial crisis and economic downturn, and the volume of foreign trade dropped by 13.9 percent to USD 20.57 billion. But the 100 cities leading in foreign trade accounted for 93.2 percent of the whole country＇s international business.     

Three Driving Forces of Labor Market

The sub prime in Wall Street of USA finally turned into global economic crisis. China, as the second largest export country in the world, caught in the biting cold economic storm. As the declining export directly plays on the weakness of Chinese economy, shrinking domestic demand and weak export market worsens the employment situation in China. It seems that the employ- ment and re-employment have become the top task for Chinese government. The reason why the economic crisis has such a large influence on Chinese job market may be related to the three problems come up in the development of Chinese economic development.     

Wu Jinglian:No Timetable for RMB Appreciation

Professor Wu Jinglian recalled the changes of Renminbi exchange rate mechanism and analyzed that before 1994, China had a multi-exchange rate, such as official price and adjustable price, sometimes leading a higher evaluation of Renminbi. Since 1994, China has had a strict control floating exchange rate. After the financial crisis in Southeast Asia, China‘s neighboring countries as well as the US appealed for non-depreciation of Renminbi.China accepted the appeal and kept a steady exchange rate of Renminbi,which contributed to the economic resurgence of Asia and world.……     

Foreign Registered Trademarks in China are Protected

Since opening to the outside world, China has paid close attention to the protection of the intellectual property by legislative means. The administrations of industry and commerce and the people's courts at all levels have handled a lot of trademark infringement cases.effectivelv protecting the exclusive right of foreign registered trademarks in China. In this issue we select some cases to let our readers know how foreign registered trademarks have been protected in China.     

The Locals' Opportunity Under Foreign Banks' Expansion

The global financial crisis is striking the international financial market severely. Since July 2007, foreign banks and brokers have been suffering an enormous loss caused by the financial crisis. More than 160 thousand jobs have been cut this year by financial institutions like Citibank, HSBC and Morgan Stanly, etc. However, what shows a strong contrast with global job cutting is that these foreign banks are rapidly expanding their business in China. According to the data of related market,seven foreign banks have opened more than nine new branches in two months after September 17, the day that Lehman Brothers filed for bankruptcy protection. November 17, HSBC issued China UnionPay debt cards in 17 cities of China. At the same time, several new services of foreign banks were supposed to be authorized by CBRC (China Banking Regulatory Commission), including loan corporation of Citibank and credit cards of BEA.     

China Reduces Holdings of U.S. Treasuries to Lowest Level

Bloomberg reported on February 16 that China,the largest foreign lender to the U.S.,reduced its holdings of Treasuries in December to the least since June 2010 amid efforts to assist Europe in addressing its debt crisis.