RMB Exchange Rate Reform：Past and future

With the deepening of China＇s financial reform, economic development and the enforcement of market roles, the RMB exchange rate needs to become more flexible and become a more sensitive reflection of the changes in market supply and demand. Under such circumstances, on July 21, the People＇s Bank of China announced that the previous system where China＇s RMB was pegged to the U.S. Dollar would be changed to include a basket of foreign currencies, shifting China＇s exchange rate system into a managed floating exchange rate regime based on market supply and demand.     

Luxury Loves China

With luxury sales in the rest of the world either shrinking or growing more slowly, it showcased a completely different scene in China. Although not immune to the global economic crisis, the country has suffered far less than others, and the continued health of China＇s luxury market makes it an oasis of hope and possibility in a recession-battered world.     

Shaanxi Impressions

Ancient, but longing to be modern
In most people＇s eyes, Xi＇an, the capital of Shaanxi, a province in western China, is an alias for ＂Ancient China＂, which is also what Patricia from Arizona, U.S., who was sitting next to me on my Xi＇an flight thought as well. ＂My husband and I managed to spend one precious day there in our busy China trip schedule, just to have a look at the great Terra Cotta Warriors,＂ Patricia＇s eyes were glimmering as we set off flying towards history. The Terra Cotta Warriors are the masterpiece of the First Qin Emperor, whose dynasty dates back to BC 221 - BC 207. Actually, I would prefer to refer to the city as ＂Chang＇an＂, which used to be the city＇s name in the Tang dynasty （AD 618 - 907） when it served as China＇s capital during the most prosperous period in ancient Chinese history.     

Anti-Monopoly Law and Its Implications for Foreign Companies in China

On August 30 2007, after more than a decade of legislative efforts, the Standing Committee of the National People＇s Congress （NPC）, China＇s top legislature, completed its third official reading of the draft Anti-monopoly Law （AML） and formally adopted it as thecountry＇s first comprehensive competition law. The Anti-monopoly Law will become effective on 1 August 2008, to guard against monopolistic conduct, safeguard competition, improve economic efficiency, protect public and consumer interests, and promote the healthy development of the socialist market economy. After 13 years of debate, the final adoption of the AML marks an important step toward an effective competition regime in China＇s move toward a market economy. This article introduces the history of China＇s Anti-monopoly Law, summarizes some of its key provisions, highlights some of the major improvements on the June 2007 draft, and discusses the major implications for foreign companies doing business in China.     

Encouraged Projects for Foreign Investment in China

According to official statistics, the population of foreign residents in China amounted to above 320 thousand by the end of last year. Most of them are working for institutions and enterprises in China. They are an undividable part of Chinas growing economy. To better promote business exchange between China and the world, and to better serve those foreign friends in China who contribute for China＇s international exchange, China＇s Foreign Trade opens this special ＂Foreigner＇s Guidance＂ column, supplying useful information for foreign readers mainly on investment and trade in China. Each issue of the Magazine will focus on different aspect, from where business and life could be easier to start. We offer more than guidance!     

Fiji Islands,Cooperation No Ends

Do you know which country consists of 332 islands？ That is Fiji,a vast ocean territory with romantic islands and beaches.When Mr.Taito Waradi, Minister of Ministry of Commerce,Industry,Investment ＆ Communications of Fiji,was on a commercial visit in China, China＇s Foreign Trade took the precious opportunity to have an interview with him. What＇s behind him was the large commercial delegation from Fiji,seeking for cooperation partners in China.From the smile and enthusiasm on his face and on every face of the delegation,we all read that the cooperation between China and Fiji is just on the way.An open Fiji is ready to embrace the world.China is more prepared to go along with this islands country.[第一段]     

In or Out？

China on April 1 raised the tax rebate rates on exports of certain textile and apparel products from 15% to 16%. It , is the fourth time the government has raised the rebate rate since last August. Dating back to February 4, the State Counc-il executive meeting examined-and approved in principle the revitalization of the textile industry adjusts planning, in the planning, the country would increase textile and garment export tax rebate rate further from 14% to 15%. The measures are expected to boost China＇s textile and garment enterprises＇ profits by RMB 9 billion, it is significantly positive for the textile exporting enterprises since the country policies convey a positive signal to consolidate the international share of China＇s textile industry. Some experts firmly declare textile exports are set to languish this year with no signs of a quick pick up, notwithstanding the increase in tax rebates. Other asserts that with the relative domestic demand extending policies released by the government, the domestic market is expected to remain stable. In these circumstances, more and more enterprises are pushed or actively choose to eye on domestic market, but is ＂going in＂ really better than ＂going out＂ for them？ If it is really a dilemma, how can they do to strike the balance？     

China Telecom＇s net profit down 27.5% in H1

China Telecom Corp, Ltd., China＇s largest fixed line service provider, said on August 27 that net profits fell 27.5 percent from a year earlier in the first half of this year on losses of fixed-line subscribers and increased costs on mobile services. Net profits stood at RMB 8.41 billion （US$1.23 billion U.S. dollars） in the first half, excluding gains from fees collected from installation of fixed lines. Earning per share was RMB 0.1, the company said in its statement to the Hong Kong Stock Exchange. Revenue rose 14.8 percent year on year to RMB 102.55 billion from January to June. The company said it didn＇t plan to pay an interim dividend, but would consider the matter at the end of the year.     

Yuan Appreciation——At the 7-Yuan Mark

On April 10, China's currency, the Yuan, opened at 6.9920 against the U.S.Dollar, compared to an exchange rate of 7.0017-to-1 on the previous day, breaking the 7-yuan mark for the first time since the govemment un-pegged it from the Dollar in 2005, according to the China Foreign Exchange Trading System.     

60 Years of China＇s Foreign Trade

Since the founding of the People＇s Republic of China 60 years ago, especially its launch of reform and opening up policy 30 years ago, China has achieved great transformation from a closed or semi-closed to an all-round opening up economy. Foreign trade has also made brilliant achievements. Goods and services continue to expand from small to large scale, from low to high quality. After sixty years of hard work, today＇s China is integrating into the world economy with a more open-minded state and more self confidence.     

Weaving A Global Network

in recent years, private enterprises have increasingly become a major economic force in China. As such businesses grow, the revenue from the international business that they conduct grows accordingly. China＇s private enterprises are going global. Due to the world＇s economic globalizatlon and China＇s entry into the WTO, both domestic and international competition has come to be more intensified, which to some extent has provided a favorable environment for the international business operations of China＇s private enterprises. A document entitled Opinions of the State Council on Encouraging, Supporting and Guiding the Development of the Non-Public Ownership Economy, Including Individual Ownership and Private Investment, issued in February 2005, explicitly supports the exploration of foreign markets by private enterpris- es. It is the definitive guide for private business in China, and thus has been a driving force behind private enterprises to start international business.     

Auto

China＇s Ministry of Commerce： no application for Hummer dealmade
China＇s Ministry of Commerce said on September 15 it has not received an application from Sichuan Tengzhong Heavy Industrial Machinery Co. over their Hummer deal. Ministry spokesman Yao Jian made the remarks at a oress conference resoondinG, to media reports.     

Chile：Close Tie between China and Latin America

Chile was the first country in South America to establish a diplomatic relationship with China more than 38 years ago.Since then,with the bilateral free trade agreement in place,Chile has become China＇s second-largest trading partner in Latin America,and China is currently Chile＇s largest trading partner in the world.In April of 2008,China and Chile signed the Supplementary Agreement on Trade in Services of the Free Trade Agreement between the Government of the People＇s Republic of China and the Government of the Republic of Chile in Sanya, Hainan province.This was a historical milestone marking the longstanding relationship between China and Chile.To learn more about this bilateral relationship,China＇s Foreign Trade invited Mr.Mario I.Artaza,Director Commercial Office Trade Representative at the Beijing Embassy of Chile in China,to give us his point of view on the current business and economic environment that exists between these two countries.     

PMI of non-manufacturing sector： 58.4% ↑ in March

China＇s Purchasing Managers＇ Index （PMI） of the non-manufac- turing sector rose to 58.4 percent in March, a rebound of 12 percentage points from February, when the index fell below the boom-bust line of 50 percent for the first time since a year earlier, an industrial association said on April 3.     

＂Made in China＂ at the Crossroads in 2009

In the short run, China＇s export is a usable weather vane for the health of the global economy and the strength of consumer demand. A slump in export to some extent means economic depression elsewhere. Besides, the development direction choices of manufacturer will be pivotal to China＇s upgrade from export-oriented economy to a more well-rounded economy. The immediate threat to this upgrade is from the global slowdown that Chinese exports declined in November last year heralds tough times in 2009.     

The RMB Exchange Rate Keeps Increasing

In July 2005, the People's Bank of China officially announced that it would adopt a manageable floating exchange rate, adjusted according to a basket of currencies based on market supply and demand. On that day, the exchange rate of the RMB to the U.S. Dollar increased by 21 percent, and since then the RMB exchange rate has gradually turned to a more flexible exchange rate convention, rather than focusing on the Dollar only.     

Japan Image Mirro

Asmall-scale survey was deducted recently by China＇s Foreign Trade and showed that Chinese urbanites are changing their attitudes toward Japan and many of them are viewing their Asian neighbor more positively. On the topic of ＂Japan linage＂, we interviewed over 50 young white collars from China. Most of them have been to Japan or working for Japanese enterprises in China. Based on their interests and knowledge to Japan, we paint an international picture to this economic giant by inflection from the thought mirror in minds.     

China steel association opposes Rio-BHP iron ore JV

A global iron ore oversupply, lower spot prices, and huge stockpiles in China＇s domestic iron ore market will improve the odds of Chinese steel mills in securing more cuts in its iron ore price negotiation with overseas suppliers, Du Wei, an Umetal analyst told Xinhua on June 4, China Iron and Steel Association （CISA） refused on May31 to accept the iron ore price cut between 33 percent and 44 percent reached between Rio Tinto and Japan＇s Nippon Steel Corp, and insisted on a price cut of more than 40 percent in the annual contracts of iron ore.     

China a major target of trade protectionism： Official

China is expected to overtake Germany as the world＇s top merchandise exporter this year due to a weak performance of the European economy, an official with the World Trade Organization said on July 23. WTO chief economist Patrick Low made the remarks at a two-day gathering of trade ministers from APEC economies in Singapore.     

Luxury＇ OEM chain in China

According to statistics, China＇s domestic clothing consumption averaged an annual growth rate of 14.72 percem from 2001 to 2008, 2009 growth rate is expected to remain rhore than 15 percent, althoughexposed to the international financial crisis, clothing consumption becomes a major boost to China＇s textile industry. Along with the steady and rapid development of China＇s economy, demand for textiles in automotive, construction, health, energy, aerospace, agriculture industries are also on the rise. 2008 industrial textile volume exceeded 6 million tons, accounting for 17 percent of total textile fiber processing volume in China.