Strong Renminbi Policy & the Coming of Age of China's Outward FDI

This,we believe,will be the year of Beijing's strong renminbi policy.Despite concerns about exports,we believe Beijing will keep the CNY pegged against a strong dollar.Combined with cheaper commodity prices and the pressing need of many overseas commodity firms to deleverage,this will create the perfect opportunity for China's firms to significantly ramp up their outward foreign direct investment (FDI).     

Italy and China： Trade, Culture and History——An Interview with Antonino Laspina, Commissioner of the Italian Trade Commission＇s Beijing office

Italy is a modern, industrialized nation which has managed to preserve its traditional culture intact. It is China＇s old friend, and its long-time trade partner. In 2006, the Year of Italy in China, various measures were taken to broaden the scope of China and Italy＇s relationship, not only in terms of economic cooperation and trade, but also concerning historical and cultural awareness. What sort of new opportunities for cooperation will we be seeing in the new year？ China＇s Foreign Trade interviewed Antonino Laspina, Commissioner of the Italian Trade Commission＇s Beijing office, about this question and more.     

Tough ＆ Long＂Going-Out＂ Road -- Review on the Internationalization of China＇s Auto Industry

In 2008, the momentum of the outward investment of Chinese enterprises was strong. The amount of outward investment continued to grow rapidly, and has for the first .time exceeded USS50 billion, reaching USS55.91 billion. China＇s automobile industry has undergone decades of development and has formed a huge production capacity, with part of its pioneering enterprises having conducted a number of useful attempts in internationalization. The once-in-a-century financial crisis influenced various industries in every country. Nevertheless, China＇s auto enterprises are facing a rare opportunity in outward investing. Enterprises need to achieve their own technological upgrading with the ＂going global＂ strategy in order to maintain long-term stability and sustainable development.     

Yiwu,China＇s Brand in Small Commodity

According to the newly-released stimulus plan for light industry, light industry firms were encouraged to step up efforts in developing their own brands and improving the quality of products. In this respect, .Yiwu city, China＇s small commodity center, proves to be a vivid example for self-brand construction of light industry products, which is crucial to securing China＇s weakening export under the current financial crisis.     

Century-old Teahouse——Wuyutai

Beijing is an old capital of long history and culture, and those time-honored firms in Beijing have undergone centenary vicissitudes which are incorporated in it. The ups and downs of them are no better a proof of rule of commodity economy. As its name suggests those firms are the famous-brand manufacturers, shops and products. Beijing Wuyutai Tea Company is one of those time-honored brands with more than 100 years‘ history. In different historical periods, Wuyutai struggled to the front of China‘s time-honored brand through tough efforts. How to seize the opportunity, meet the challenge and succeed in economic reform?     

We Are Engaged in Eliminating Trade Barriers between Africa and China——Exclusive interview with Mohamed A. El Masry, Chairman of the Federation of Egyptian Chamber of Commerce

On November 3 to 5, the Beijing Summit of the China-Africa Cooperation was held in Beijing. The People's Daily, the central government-administrated newspaper, praised this as a New Starting Point for Sino-African Relations, marking that the half-century Sino-African friendship that has stepped into a new historical period. During the forum, China's Foreign Trade interviewed Mr. Mohamed A. El Masry. Chairman of Federation of Egyptian Chamber of Commerce. "In Egypt, people feel very proud of China, and about what the Chinese people have achieved, we believe that as Africans, we want to strengthen ties between China and Africa. That's why Egyptian President Hosny Mubarak will continue to have special visits to China after the summit on November 6 and 7, in order to enhance trade relations between Egypt and China, especially in investment, tourism, etc." Mr. Masri said. By Editor     

Congratulatory Messages For the New Year

The Embassy of the Islamic Republic of Afghanistan in Beijing wishes a happy and a prosperous New Year in 2007 to the People and Government of the People＇s Republic of China. In the year of 2007, we look forward to strengthening the relationships between the two countries and further cooperation between the Government of the People＇s Republic of China and the Government of the Islamic Republic of Afghanistan in various fields.     

Rio Tinto arrests an “isolated”case

China＇s steel industry association said on July 31 that it plans this year to unify the spot and long-contract prices for the country＇s iron ore imports. It will also set a ceiling for charges levied by import trading firms, as part of an effort to regulate the market. The proposal was the top item of discussion at the steel industry body＇s twoday semiannual meeting, said Luo Bingsheng, deputy chairman of the China Iron and Steel Association （CISA）, at a press conference.     

Partenariat 2006-Aims at High Quality（Interview with Sui Jianmin, Director of CCPIT International Relations Department）

Mr. Sui Jianmin, Director General of CCPIT International Relations Department was the ProJect Manager of 2002 EU-China Partenariat, which was very successfully organized in Beijing. When interviewed by China＇s Foreign Trade, he gives very confident and convincing comments that 2006 Partenariat in Chengdu will be much more fruitful than 2002 Partenariat. ＂It＇s reasonable to believe that 2006 Partenariat will be very high-quality and fruitful.＂ he said. He gives his detailed illustration as follows.     

Congratulatory Messages For New Year

Spring Greetings It is a great pleasure for me to have this opportunity to wish a pros- perous and peaceful New Year in 2008 to all distinguished readers of China’s Foreign Trade.With the Country’s continued fast economic development,I believe the year 2008 will be a unique period of time in the history of China,with the upcoming"Beijing Olympic 2008".I am also pleased and consider myself lucky to be a part of this colorful historical event.     

Will China Continue to be the Engine of the World＇ s Economy？.

No one has an answer as to whether China＇ s economy will keep chugging along and remain the engine of the world＇ s economy. I for one am very optimistic as to the country＇ s growth prospects
With economic data consisting of mixed signals, it＇ s really a challenge to definitively know how China＇ s economy is really performing, and where it s headed.     

Go up or down?——Look into the Real Estate Price After the Olympics

2008 Beijing Olympic Games to the Chinese is not only a unique event, but also will influence many aspects of China. To the real estate industry, the effect of the Olympic Games will play an important role in a short period. How about the effect to Beijing＇s housing price？ Does it continue to go up or turn down？ This is the main concern for majority of those in this industry and consumers.     

China aims to foster more world famous bag brands with good quality

China＇s Ministry of Commerce will hold a hearing on Coca Cola＇s US$2.4 billion offer to buy China＇s largest juice maker Huiyuan, a local newspaper said on September 15. Domestic juice producers will jointly submit to the ministry three new acquisition plans for Huiyuan to replace the Coke deal, the Beijing Morning Post cited an unnamed source as saying.     

How Can China Improve The National Competitiveness to Attract More FDI？

With the globalization in the whole world, how to introduce more FDI is becoming a severe problem for a country. In China, the important thing is to improve the national competitiveness itself, which will attract more FDI coming into China. This paper discusses some measures or policies according to Dunning＇ s （1988） eclectic paradigm and Porter＇ s （1990） ＂diamond＂ system.     

Changes in China＇s Trade Policy？

＂We will steadily develop foreign trade. The main issues are to exploit new markets, adjust the trade structure and promote trade balance＂, Chinese Premier Wen Jiabao delivered a government work report at the opening meeting of the annual full session of the National People＇s Congress （NPC）, China＇s top legislature, which started in Beijing on March 5, declaring a new development path of Chinese foreign trade in 2010. As one of the biggest trading powers in the world, this will bring great influence on world trade situation and the trade relationship between China and its main trade fellows such as the USA and the EU.     

Innovation,key for＂Made in China＂ to out of crisis

China＇s foreign trade and export enterprises have encountered unprecedented pressure during the global financial crisis - but analysts say they believe innovation is the way out for the ＂Made in China＂ brand.
The Quanzhou Baofeng Shoes Company, one of China＇s leading producer of slippers, is precisely the type of exporter that should be on its knees. Headquartered in Quanzhou, a coastal city in southeastern Fujian Province, Baofeng used to export 90 percent of its annual output to the United States.     

Large Shareholder Tunneling and Risk of Stock Price Crash： Evidence from China

Although several studies have examined the economic consequences of large shareholders＇ tunneling behavior, little attention has been paid to the negative effects of tunneling on firms＇ extreme events. In this article, we investigate how tunneling behavior affects firm-level stock price crashes. The findings indicate that the probability of stock price crashes is positively associated with the extent of tunneling behavior by large shareholders. The positive relationship is more pronounced after the split of share structure reform and is moderated by the firm＇s financial conditions. This study contributes to the emerging body of literature focusing on the economic consequences of tunneling and stock price crashes. The conclusions drawn from the study also provide a frame of reference for investor protection and investment portfolios based on large shareholders＇ tunneling behavior in China.     

Then And Now——How The Global Financial Crisis Will Affect Chinese Outbound investment

1. The future of outbound M＆A for Chinese enterprises
The background
As we read in the press lately, China＇s trade surplus and foreign-exchange reserves have fuelled its growing overseas M＆A activities over the last several years. Most commentators believe that this outbound activity will continue to increase. Some recent reports suggest, however, that since the current financial crisis began, there has been a slow down in China outbound M＆A activities,     

Olympics Are Opening up China—— Interview with Charles Lagrange,Representative from the EUCCC

＂Recent deals are demonstrating China＇s willingness to invest in overseas markets instead of passively receiving FDI. This is potentially a winwin scenario; a great amount of Chinese companies are not satisfied with selling their products only in China So in that sense, I believe the greatest benefit of hosting the Olympics is showing that China wants to become a big player on the international scene.＂     

China predicts $2.1 tin of foreign trade in 2007

China＇s imports and exports of goods will likely amount to US $2.1 trillion for the whole year, a growth of 20% over the year- earlier level, according to a report released by the Ministry of Commerce.