China - 中国国际贸易促进委员会

CHINA’S
F REIGN TRADE
The Export-Import Bank of China:
Want to Be the Best in A Better World ?
Special report
Cost List of
Logistics Industry
INDUSTRY
SURVEY
“Created in China”
Takes off at Canton Fair
Mr. John Gong,
Chairman of American
ICP Inc. and President
of To Pacific Inc.
国 内 邮 发 代 号 :80-799
国 际 邮 发 代 号 :SM1581
国 内 刊 号 :CN11-1020/F
国 际 刊 号 :ISSN0009-4498

What’s on?
E-commerce injects vitality into rural development
in China
Yiwu in eastern China’s Zhejiang Province has not only won world fame as an
international distribution hub for small commodities, but has also brought business
opportunities to local farmers through development of e-commerce.
Yiwu’s Qingyanliu Village, which is praised as China’s No. 1 “e-commerce
village”, is home to over 1,000 permanent residents and nearly 2,000 online shops.
It recorded more than 800 million yuan ($121.2 million) in online sales in 2009.
The online shops, which are engaged in selling such daily-used merchandise
as scarves, toys and lamps, have also attracted some 20 express delivery companies
and more than 7,000 workers and business people from other parts of the country.
“Starting up a business on the Internet has helped change livelihoods and lifestyles
of local farmers. They have gotten used to computer keyboard and mouse,”
Liu Wengao, deputy head of the e-commerce association of Jiangdong community in
Yiwu, told Xinhua.
In order to ensure that small online businesses can find sources for commodities
inside the village, a special supermarket tailored to the online shops was established
at Qingyanliu. Online business people are able to shop for thousands of real
items at the market, instead of going outside the village. They may log in descriptions
and pictures of the commodities
they are going to sell onto the Internet
and go to the supermarket to pick up the
products after having received clients’
orders.
Business people from other areas
of Zhejiang, and even from Chongqing
Municipality in southwest China, Anhui
in the eastern part of the country and
Liaoning in the northeast, have flocked
to Qingyanliu. Any of them may rent a
house in the village and start an online
business with a computer. All parts of
the business process, from online shop
registration to goods purchases and delivery,
can be done inside the village.
Qingyanliu is a showcase of e-
commerce development in China’s rural areas.
Official statistics show that in 2009 rural Internet
users numbered more than 100 million
throughout the country, an increase of 26.25
percent year on year. Between 2007 and 2009,
the annual growth rate for rural Internet users
averaged 71.6 percent, much higher than the
34.6 percent rate for urban Internet users.
Apart from population growth, rural online
shop operators have expanded their business
scope from farm produce to industrial products,
which they committed local workshops to process.
(Xinhua)
Yuan to be used more in
foreign trade
Use of the yuan in China’s foreign trade
may go up from 2.5 percent last year to around
8 percent in 2011, estimated a Chinese banking
official on May 11. However, foreign trading
partners may be less inclined to trade in the
currency due to capital controls, making it difficult
for the yuan to flow back to the Chinese
mainland, economists said.
In the first quarter, 6.84 percent of foreign
trade was settled in the yuan, said Zhang
Guangping, vice head of the Shanghai branch
of the China Banking Regulatory Commission.
Cross-border trade settled in the currency
totaled about 500 billion yuan ($77 billion),
accounting for about 2.5 percent of China’s foreign
trade last year.
The yuan is expected to be one of the three
major currencies used in global trade after the
dollar and euro this year, according to a recent
HSBC survey of 21 major global markets.
Figures
181m
Charitable donations from 67 centrally
administered State-owned enterprises
(SOEs) totaled 181 million yuan ($27.83
million) in the first quarter of 2011, official
data showed on May 20. (Xinhua)
4.88%
Macao’s Composite Consumer Price
Index (CPI) for April this year went up by
4.88 percent over the same period of last
year, according to the figures released on
May 20 by the city’s Statistics and Census
Service (DSEC). (Xinhua)
5.3%, 6.8%
China’s consumer price index (CPI), a
major gauge of inflation, grew 5.3 percent
year-on-year in April, according to figures
released by the National Bureau of Statistics
(NBS) on May 11. The CPI figure is 0.1
percent lower than that of March.
China’s producer price index (PPI), a
major measurement of inflation of wholesale
prices, grew 6.8 percent year-on-year
in April, down 0.5 percentage points from
March. (Globaltimes.cn)
$82b
China’s yuan settlement in cross-border
trade topped 530 billion yuan ($81.54 billion)
in the first four months of 2011, said an official
with the central bank on May 19. (Xinhua)
24.2%
China’s State-owned enterprises (SOEs)
continued to expand in the first four months
2

Since July 2009, China has been
promoting the yuan in cross-border
trade to reduce its reliance on the lessvalued
dollar and to internationalize its
currency.
“Many trading companies in China
hope to settle trade in yuan to avoid exchange
losses caused by the appreciating
yuan against the USdollar when trading
with ASEAN partners,” Xu Ningning,
secretary-general of the China-ASEAN
Business Council Chinese Secretariat,
told the Global Times.
By the end of last year, 67,724 import
and export companies in 20 areas,
including Beijing, Tianjin, Sichuan and
Xinjiang, were allowed to conduct trade
in the yuan.
Trade settlement in the yuan accounts
for a very small part of the total
$292.78 billion in trade from the China-
ASEAN free trade area, Xu said.
Foreign exporters are more willing
to accept yuan for trade settlements than
importers in China, said Lu Ting, China
economist with the Bank of America
Merrill Lynch.
With the yuan’s continuing appreciation
against the dollar, foreign exporters
can enjoy exchange gains. However,
foreign importers can bear higher exchange
costs for yuan payments to Chinese
trading partners.
As of May 11, the yuan had appreciated
by about 5 percent against the US
dollar since mid 2010. (Global Times)
Quotes
“Latest China-EU trade
frictions not trade war”
The latest trade frictions between
China and the European Union (EU) do
not amount to a trade war, said Ministry
of Commerce (MOC) spokesman Yao
Jian on May 17.
It’s not surprising for China and the EU to have trade disputes as the two sides have
maintained large trade volumes over the past years, said Yao at a routine press release.
“For some products, there might be a lasting legal disputes. But the total dispute
ratio will be very low between 1 to 3 percent,” he said. (Xinhua)
“US-China’s mutual understanding never more
important”
Beijing-Washington relationship was the single most important bilateral relationship
in the world Friday, “mutual understanding has never been more important”,
said Citigroup’s CEO to a leading Chinese-American organization in New
York on May 12.
Vikram S. Pandit, also participated in the China-US Strategic and Economic
Dialogue two days ago, said at the 20th Annual Conference of Committee of 100
that despite the differences, US and China, the world’s two leading powers were
partners across a range of globally important issues, so they should work more
closely together. (Xinhua)
“Int’l firms need to better understand Chinese
consumers”
International companies need to better understand Chinese consumers and
implement effective strategies before they could tap the tremendous potential of the
Chinese market, US experts told a business forum here recently.
“China is a very fast developing country with 1.3 billion consumers. We simply
cannot treat this population like one segment,” Leon Bian, director of Global
Enterprise Mobile Solutions at LG Electronics, told the forum titled “Marketing
strategies for one billion Chinese consumers.” (Xinhua)
of this year, but at a slower pace, the
Ministry of Finance (MOF) said on May
19. (Xinhua)
7.2%
Hong Kong’s economy expanded
robustly in the first quarter this year,
with its Gross Domestic Product (GDP)
up 7.2 percent from a year ago, said the
Hong Kong government on May 13,
who forecast an GDP increase of about
five to six percent for the whole year of
2011. (Xinhua)
28%
US investment in China dropped sharply
by 28 percent, while foreign direct investment
(FDI) maintained double-digit growth
from January to April, the Ministry of Commerce
said on May 17. (China Daily)
27%
China’s Ministry of Finance said on
May 11 that the country’s fiscal revenue
rose 27.2 percent year-on-year to 1 trillion
yuan ($154 billion) in April. (Xinhua)
26%
Foreign direct investment (FDI) in
China grew 26.03 percent year-on-year
to reach $38.8 billion during the first four
months of this year, the Ministry of Commerce
(MOC) said on May 17. (Xinhua)
$11b
China saw a trade surplus of $11.43
billion in April this year, according to figures
released on May 10 by the General
Administration of Customs. (Xinhua)
3

What’s on?
The 7 th Northeast Asia Expo to be held in September
The seventh Northeast Asia Expo, cosponsored by the Ministry of Commerce
(MOFCOM) and the National Development and Reform Commission of P.R. China
(NDRC) and the People’s Government of Jilin Province, is scheduled to be held
from Sept. 6 to 11 this year at Changchun International Conference & Exhibition
Center, Jilin Province.
Mr. Chen Jian, Vice Minister of MOFCOM, pointed out at the press for the Expo,
that the Northeast Asia Expo, as an important platform of economic cooperation for
China to be oriented to the opening-up of Northeast Asia, has played a positive role
in promoting Northeast Asian regional economic cooperation, of which will be further
made use in the future to continuously deepen the economic cooperation among
Northeast Asian countries.
Mr. Wang Huajiang, Vice Director of NDRC said at the press conference that the
NDRC will give full support to hold well the Expo and make it an important vehicle
for conveying the implementation of such national strategies as the revitalization of
Northeast China and construction of Changchun-Jilin-Tumen River Development and
opening-up Pilot Zone.
Mr. Chen Weigen, Vice Governor of Jilin Province presented five characteristics
of the Expo: First, focusing on the role as strategic carrier for opening-up and assuming
the national strategic mission. NDRC is studying and formulating the “12th
5-year”Revitalizing Plan for Northeast China. So during the Expo, NDRC will hold
the interpretation of “12th Five-Year” Revitalizing Plan for Northeast China and Project
Presentation. Second, emphasizing innovative exhibition and further heightening
internationalization level. Third, expanding and deepening the cooperative sectors,
enriching and heightening the contents of conference and forums. Fourth, enlarging the
platform for investing cooperation and strengthening
the actual effects of the Expo. Fifth, enlarging
cultural exchanging platform in combination with
Northeast Asian cultural characteristics.
The Northeast Asia Expo has been successfully
held six times, and there have been over
13 billion visitors from 117 countries attending
the Expo. 300 corporations among the world
top 500 have participated the Expo.
For the past 6 Expos, the accumulated trade
transaction volume totaled US$ 2700 million
and a total of 1278 investment projects worth
RMB 624 billion were signed. (Yan Manman)
China issues guideline for rare
earth industry
China’s State Council on May 19 issued a
national guideline that aims to promote sustainable
and healthy development of the country’s
rare earth industry.
China will take effective measures to
strengthen the management over the sector and
speed up transforming the development pattern
of the industry in order to protect and properly
use rare earth resources, the guideline stated.
The guideline, posted on the central government’s
website, www.gov.cn, lists a slew
of problems that severely affect the sector’s
healthy development, including illegal mining,
excessively expanding smelting and extracting
capacities, environmental damage, and disorder
in exports.
According to the government’s latest requirement,
the country will strictly regulate
industrial access, improve management over
output plans, and beef up regulations concerning
exports. The government will also expedite
Figures
477m
The number of Internet users in
China reached 477 million as of end of
March while websites registered with the
authorities had climbed to 3.82 million, a
senior telecommunication official said on
May 16. (Xinhua)
101.2t
Assets of China’s banking financial
institutions rose in value 18.9 percent
year-on-year to 101.2 trillion yuan
($15.57 trillion) by the end of March, the
country’s banking regulator said on May
13. (Xinhua)
$100b
According to the latest data released
by the Commerce Department of China,
Shanghai’s total export-import volume of
service trade in 2010 is $104.67 billion, a
40 percent year-on-year growth, with exports
totaling $40.6 billion and the imports,
$64.03 billion. (Peopledaily.com.cn)
25.4%
China’s fixed asset investment rose
25.4 percent year on year in the first four
months to reach 6.2716 trillion yuan
($965.6 billion), the National Bureau of
Statistics (NBS) announced on May 11.
(Xinhua)
4

the creation and revision of relevant
laws and regulations pertaining to the
sector’s management.
Special campaigns will be launched
to crack down on illegal mining activities
and excessive production, and greater
efforts will be made to combat practices
that pollute the environment and damage
the ecology. The campaigns will also target
illegal exports and smuggling of rare
earths, the guideline said.
China implements a quota system
for rare earth exports. In a move to further
streamline exports, the Ministry of
Commerce and General Administration
of Customs on Thursday jointly announced
the inclusion of rare earth ferroalloys
in the export quota system.
Furthermore, the guideline states
China will restructure and optimize the
sector through increased mergers. The
country will also expand the strategic reserves
of rare earth resources and quicken
the steps in research and industrialization
of key technologies within the industry.
Chinese Premier Wen Jiabao said in
February that China will streamline its
rare earth industry during the coming five
years, highlighting the urgent need to protect
the environment and save resources
by accelerating industrial upgrading and
technological innovation in the sector.
As the world’s largest rare earth
producer and exporter, China provides
more than 90 percent of the global demand,
and its reserves account for one
third of the world’s total. (Xinhua)
“Emerging economies set to reshape world landscape”
The emerging economies are redefining the global economic and geopolitical
patterns in coming years with a robust economic growth outpacing developed
economies, which highlights the importance of a more flexible and inclusive global
system to accommodate this fundamental trend, renowned economists from the
World Bank (WB) said on May 17. (Xinhua)
“Chinese economy to have soft landing”
Sweden’s SEB bank senior economist Klas Eklund thinks that the Chinese
economy will have a soft landing even though there is a high inflation currently.
Eklund made the comment in an exclusive interview with Xinhua during the
break of a seminar moderated by him and organized by China Alliance in Stockholm
on May 10.
“I think the inflation problem is mainly short term, if you look at the numbers
it is mainly food prices. But I think food prices will start to come down during the
spring and the summer, so the short term inflation will come down as well,” Eklund
said. (Xinhua)
“China wary of stunted growth”
Quotes
China could end up stuck in the middle income trap of slowing growth rates
and stagnating income levels during the next five to 10 years, a new report commissioned
by the Asian Development Bank warned on May 4.
The notion refutes a widespread belief China is on an unstoppable course to
global economic dominance.
The report said China cannot “afford to fall into the trap when seeking to move
from resource-driven growth, that is dependent on cheap labor and capital, to growth
based on high productivity and innovation.” (Global Times)
“China to engage more in South-South cooperation”
After China surpassed Japan in terms of nominal GDP, China will engage more
in South-South cooperation, said Haruhiko Kuroda, president of Asian Development
Bank (ADB).
Kuroda made the statement at a press conference under the 44th annual meeting of
the Board of Governors of the ADB in Vietnam’s capital city of Hanoi on May 3. (Xinhua)
13.4%
China’s industrial value-added
output rose 13.4 percent year on year
in April, down from March’s 14.8-
percent growth, the National Bureau
of Statistics (NBS) said on May 11.
(Xinhua)
74m
China’s capacity of rural hydropower
is expected to hit 74 million
kilowatts (KW) by 2015, said the
country’s Water Resources Minister
Chen Lei on May 7. (Xinhua)
6b
Revenue from China’s express
deliveries hit record high of 6.18
billion yuan ($951 million) in
March, bringing the first quarter
revenue to 15.66 billion yuan thanks
to the on-line business boom during
the holiday season, figures released
by the State Post Bureau show. (Xinhua)
830,000
A report released on May 5
detailed how the green traffic initiative
promoted during the Shanghai
Expo helped cut carbon emissions by
830,000 tons. (Xinhua)
5

2011
No.499
30
Overstrained logistics businesses, faced with various cost,
are experiencing great difficulty keeping up an appearance,
while meager profit is being lost.
REGIONAL TRADE AND INVESTMENT
08 ASIA-PACIFIC
12 EUROPE
18 NORTH AMERICA
24 AFRICA
26 LATIN AMERICA
Special report
30 Cost List of Logistics Industry
33 Vegetables Hard to Enter Cities Because of Blocked
Logistics Vehicles
35 Logistics:Price Rises Incurred by High Oil Price
36 Highway Companies Deny Windfall Profits
38 Heavy Burdens on Logistics Enterprises from
Repeated Taxation
ECONOMY
40 Beijing’s Convention and Exhibition Industry
Maintains Good Momentum
43
Although China’s consumer base is expanding and there
is a growing demand for dietary supplements, why isn’t the
industry growing much faster?
Industry
43 China’s Developing Dietary Supplement Industry
46 Technology Drives Vegetable Industry
49 Fitness Equipment Brings Business Opportunities
52 “Created in China” Takes off at Canton Fair
56 On Financing Models of Real Estate Enterprise
59 The Influence of Expressway on Social and Economic
Development
80
While with my age added, I gradually learned the terra cotta
warriors were just only one of many ancient marks of Xi’an,
which once was capital of 13 dynasties in ancient China.
Xi’an actually is a carrier of ancient China culture, where I
walked from the modern world to the ancient China.
technology
62 G-8 Leaders to Call for Tighter Internet Regulation
63 Facebook Is Developing Ways to Share Media
COVER STORY
64 Mr. John Gong: A Devoted Seeker of Science and
Technology Innovation

SURVEY
68 Foreign-branded Seeds Seek Expansion in China
Sponsored by ( 主 管 )
CCPIT( 中 国 国 际 贸 易 促 进 委 员 会 )
CHINA’S DECADE IN WTO
72 An Unusual Decade for China’s Certification Cause
Lifestyle
76 KAMA 2011 Love Music Festival
THIS IS China
80 From Here I Walked into Ancient China
EYE ON CHINA
84 My life in Beijing
85 I love my Beijing life
InfoRMATION
86 2011 China Market Suppliers List
88 China Fairs & Expos
92 Investment Projects in Northeastern China
Index of Advertisements
封 二 -01
15
23
23
29
96
封 底
Changchun First Automobile Works
中 国 第 一 汽 车 集 团 进 出 口 公 司
Ningbo Health Electric Co., Ltd.
宁 波 和 而 思 电 器 有 公 司
Shandong Wanda BOTO Tyre Co., Ltd.
山 东 万 达 宝 通 轮 胎 有 限 公 司
Qingdao Xinhe Nicety Casts Ware Co., Ltd.
青 岛 鑫 和 精 铸 制 品 有 限 公 司
Pingyang up auto sprinkler factory
平 阳 县 高 达 汽 车 喷 水 器 制 造 厂
Liaoning Yingguan Teah Ceramic CO., Ltd.
辽 宁 瑛 冠 高 技 术 陶 瓷 有 限 公 司
Anhui Jianghuai Automobile Co., Ltd.
江 淮 汽 车
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ASIA-pACIFIC
Asia Confronts Its
Inflation Challenge
By Gerard Lyons
Asia is finally waking up to its
inflation challenge. Recent
weeks have seen a further
round of monetary tightening,
with a succession of central banks
raising interest rates, or taking other
measures to put a cap on rising prices.
India, in particular, has taken tougher
action than before, with a large rate
hike, whilst others such as China have
again pushed up reserve requirements.
The policy challenge is never easy.
Is this a case of too little, too late: taking
action after inflation has already
taken off and when there are expectations
of more to come? Or is it, too
much, too soon — as there are tentative
signs the world economy has started
to slow, in turn taking the heat out of
commodity markets, with food and energy
prices easing off?
The world is two years into an
economic recovery. But in many places
8
it doesn't feel that way. This recovery
has been led by emerging economies
and by policy easing in the West. But, it
is a divided and disconnected world, as
different growth prospects, high rates
of unemployment and recent problems
in North Africa and the Middle East
testify. And it is a world of policy dilemmas.
In the West, where economies
are fragile, a double-dip recession is the
fear. Across Asia, and large parts of the
emerging world, the risks are on the
upside: inflation.
The inflation challenge is greater
in Asia for many reasons. Last year the
region grew strongly, and the slack in
Asian economies is far less than in the
West. Strong domestic demand allows
retailers and producers the opportunity
to pass on higher costs and to sustain
or boost their margins by raising prices.
Whilst this is a concern, rising wages
and good labour market conditions are
allowing people to pay higher prices.
This is akin to a wage-price spiral, albeit
in the early stages, but it can get
out of hand if not addressed quickly
enough. Then there is the very issue of
food and energy prices itself. Higher
prices of these staples hit hard into
spending and can cause problems, in
particular for the poor and those on
low incomes. Thus, in many countries,
there are complex subsidies in place, on
areas such as food, fertilizer and fuel.
These subsidies need to be phased out,
but it is difficult politically to do this.
Although subsidies may ease the pain
for some, they complicate the inflation
picture, and often add to it.
To these domestic inflation drivers,
there is the additional challenge for
Asia and for many emerging regions of
how to cope with capital inflows. This
came to the fore as an issue last year,
when money flooded in. Although less
of a concern this year, this may soon
change. This has been called ‘America’s
year’ by some investors, as the third
year of a Presidential term is often
good for the US equity market. That
optimism has been enhanced by the
additional stimulus measures America
received at the start of this year. But
now, as policy stimulus wears off, and
as debt still needs to be repaid, greater
challenges lie ahead. Add in the debt
crisis overhanging parts of Europe, and

it is easy to see why capital may start
flowing back to emerging economies.
This suggests that the problem of how
to absorb capital inflows will again become
a key concern for Asian countries.
Often challenges are most apparent
in property prices. When money
flows in from overseas, it seeks out a
home, and all too often this is in equities,
or in real estate, adding to existing
domestic pressures.
A recent analysis by Standard
Chartered of Asian property prices
shows the pressure points. That study
used the idea of traffic lights to put
countries into green, amber
and red categories.
For those in red, prices
are already too hot, and
policy-makers must stop
them. Singapore, Hong
Kong and Beijing top this
`property bubble-o-metre’.
For Hong Kong and
Singapore, this reflects the
focus of both economies
on the exchange rate,
resulting in interest rates
being too low for domestic
needs. Thus, in both places,
there is increased use
of macro-prudential measures.
These are targeted
policies aimed at curbing
property prices and can
include, amongst others,
controls on loan-to-value
ratios and curbs on buying
multiple properties. China,
too, is making use of such
measures, as it faces an
inflation challenge in its
first-tier cities. Hence, this
year, China is experimenting
with property taxes.
Overall, though, property
prices across China are in
the amber territory, as indeed they are
in many countries across the region.
Thus Asia faces inflation challenges
on two fronts: in asset prices,
especially in property and equities;
and in general terms, across the whole
economy, impacting everyone. Central
banks across the emerging world
need to avoid the lethal combination
of cheap money, leverage, and one-way
expectations. If they don’t, inflation
could take off, initially in property
but then across the wider economy.
This justifies recent policy tightening.
It also supports the case for stronger
Asian currencies, as economic fundamentals
are good and as a way of curbing
imported inflation.
While there are many reasons
to be positive about emerging market
prospects, nothing can, or should, be
taken for granted. The business cycle
exists. Setbacks can occur. One fear has
been the setback from high oil prices.
This oil shock has hit relatively early
in the cycle, when profit margins are
high and monetary policy is not already
tight, so there is ample scope for economies
to cope.
Asia should not under-estimate
the inflation risks from recent strong
growth and the possible fall-out. Europe’s
failure to cope with the oil price
shock in the early 1970’s was followed
by a prolonged period of stagnation, in
which economies under-performed.
Not surprisingly, high energy and
food costs were a hot topic at the recent
annual Asian Development Bank
(ADB) meeting in Hanoi. This fourday
meeting attracted a record turnout
of 4,000 people from across the public
and private sector. The annual ADB
meetings provide an occasion to focus
on the opportunities and challenges
ahead.
Two years ago, the meeting in
Indonesia focused on the need for Asia
to rebalance, by boosting domestic
demand. Then, three issues were identified:
the need for social safety nets, to
discourage excess saving; the need to
help small and mediumsized
firms as they are key
for job creation; and the
need to deepen and broaden
Asia’s bond markets. By
last year, the focus at the
meeting in Tashkent was
on regional integration and
paying for Asia’s huge infrastructure
bill.
All of these issues
were important at this
year’s meeting, plus there
was a strong focus on inclusive
growth. This can
take many facets, such as
bringing more people out
of poverty. The three Asian
economies that have witnessed
the biggest improvement
in Human Development
Indices are Nepal,
China and Bangladesh.
Yet inclusive growth is also
dependent upon credible
macro-economic policies
that help keep inflation in
check and achieve sustainable
growth.
For Asia, the message
should be clear. All of these
longer-term issues count
for nothing if macro-economic policy
does not confront the immediate challenges
ahead: and the most important
of those is the need to address inflation.
Although there is further to go, recent
actions by central banks suggest Asia is
moving in the right direction.
(Author: Chief Economist and
Group Head of Global Research at
Standard Chartered Bank)
9

ASIA-pACIFIC
TRADE
Chinese companies busy as demand
surges in Japan
DALIAN, April 30 — Export from some northeast
China provinces are surging to feed Japan’s hunger for food
and raw materials as the country is recovering from a quake
and nuclear crisis.
Wang Jijie, manager of Qingdao Sungree Food Co.,
Ltd. in east China’s Shandong Province, has racked his brain
to find more hands to expand production.
“I’ve already added over 50 workers, but the factory is
still short-handed. The amount of orders are at least 30 percent
more than that of last year,” said Wang, whose company
exports frozen vegetables to Japan.
Wang’s factory has been running round-the-clock as
workers are working in shifts. Still, Wang said it would be
almost impossible to deliver on schedule.
Exports of textiles, farm products and mechanical
equipments to Japan are also on the rise in Shandong.
The province’s export to Japan leaped from 81.6 million
U.S. dollars in February to 1.58 billion U.S. dollars in March,
up 54.2 percent year on year.
Some food producers in northeast China are also overwhelmed
by swarming orders from Japan as more Japanese
consumers switch to imported food out of radiation concerns
after the Fukushima Daiichi nuclear power plant was crippled
by quake-triggered tsunami on March 11.
Orders for the pickles of Seiwa, a food company in Dalian
City of northeast China's Liaoning Province, jumped 50
percent to 32 tonnes after the earthquake. (Xinhua)
Myanmar-China border trade fair
launched in Muse
MUSE, Myanmar, April 29 A Myanmar-China border
trade fair was launched in Myanmar’s Muse 105th Mile
Border Trade Zone Friday, aimed at enchanting the bilateral
trade between the two countries.
With a total of 230 booths from the two sides, the
three-day fair was inaugurated by Vice Governor of Yunnan
province of China Gu Chaoxi and Union Myanmar Deputy
Minister of Commerce Dr. Pwint Hsan.
Other surrounding countries such as India, Thailand,
Laos and Bangladesh also joined the fair.
The two countries’ joint committee for border trade will
meet at the fair with a briefing on investment in Myanmar.
Myanmar-China border trade fair is held annually on
alternate base as the last was held in Ruili, southwest China’s
Yunnan province linking Myanmar’s Muse.
According to China site’s official figures, Myanmar-
China bilateral trade hit 4.44 billion U.S. dollars in 2010,
a 53.2- percent increase over the previous year, with China
standing as the second largest trading partner of Myanmar.
The two countries’ border trade amounted to 1.054
million dollars in the first seven months (April-November)
of 2010-11, accounting for 83 percent of Myanmar’s border
trade, according to the Myanmar’s official statistics.
Myanmar’s export to China through border trade stood at
567 million dollars, while its import from the neighbor was registered
at 486 million dollars, according to the commerce ministry.
In 2010, China’s investment in Myanmar also rose rapidly,
garnering the top place for the first time in Myanmar's
foreign investment line-up with 12.3 billion dollars.
There are 170 Chinese companies investing in Myanmar
according to the figures. (Xinhua)
Chinese premier urges closer
economic, trade ties with Indonesia
JAKARTA, April 30 — China and Indonesia should
work together to further expand bilateral economic and trade
cooperation and push it to a higher level, visiting Chinese
Premier Wen Jiabao said here Saturday.
The two countries should enlarge the scale of bilateral
trade, step up cooperation in infrastructure construction and
promote mutual investments, Wen told a forum of Chinese
and Indonesian business leaders.
China and Indonesia should also intensify multilateral
trade and economic cooperation, by making full use of the preferential
policies of the free trade area between China and the
Association of Southeast Asian Nations (ASEAN), he added.
The two countries should push for the development of
China-ASEAN economic and trade cooperation and boost
mutually beneficial cooperation between developing countries
at large, said Wen.
China and Indonesia are both major developing countries
in Asia. Strengthening bilateral economic and trade cooperation
is not only in the fundamental interests of the two
countries, but also conducive to regional peace, stability and
development, said the Chinese premier.
He urged entrepreneurs of the two countries to take
the opportunity and work together with determination and
courage for the deepening of mutually beneficial cooperation
between the two countries.
China and Indonesia are good neighbors and strategic
partners and their relations have entered a new stage of development,
said Wen.
Bilateral trade and mutual investments have grown rapidly,
cooperation in infrastructure construction has made strides,
cooperation in finance has been on the upswing, and interregional
and people-to-people exchanges have been on the rise,
bringing substantial benefits to both peoples, Wen said.
The premier said that his visit was aimed at mapping
out the future and deepening cooperation as well as boosting
mutual understanding and friendship.
Indonesian Vice President Boediono told the same forum
that China-Indonesia economic and trade cooperation,
which has enjoyed rapid development, has broad prospects.
China’s development has brought about rare development
opportunities for its neighbors, including Indonesia, said the
vice president. China’s development is conducive to the promotion
of regional peace, stability and prosperity, he added.
Indonesia is willing to work with China to further promote
bilateral cooperation to benefit the two peoples. (Xinhua)
10

INVESTMENT
Afghan Cabinet discusses China’s
Aynak project investment
KABUL, Afghanistan, May 22 — Afghan Cabinet
in its special meeting with President Hamid Karzai on the
chair, held Saturday discussed China's Aynak project investment,
an official with Chinese Embassy in Kabul told Xinhua
on Sunday.
“Aynak Copper Mine is one of the most important economic
projects in Afghan history, which has a great impact
on the Afghan social and economic development, and it is
necessary to put into operation as soon as possible,” President
Karzai said while chairing the Cabinet session.
Xu Feihong, Chinese Ambassador to Afghanistan also
attended the meeting, according to the official. Several senior
officials from Afghan government including Advisor to National
Security, Minister for Mines and Industries, and the
Minister for Agriculture attended the meeting.
All the concerned parties and officials at the meeting
agreed to tackle the challenges encountered by the Aynak
project and promised to provide all the necessary support to
accelerate exploration process of the project.
The China Metallurgical Group Corp and China's top
integrated copper producer Jiangxi Copper Co. started work
in Logar Province in July 2009 to explore and develop the
vast Aynak Copper Mine south of the capital Kabul. The
project, with an investment of more than four billion U.S.
dollars, is the biggest foreign investment in Afghanistan’s
history. (Xinhua)
China promotes Canton trade fair in
Kuwait
Officials from China on May 23 held a conference in
Kuwait to promote the 110th session of the Canton trade fair,
or the China import and export fair, slated for October in
China’s Guangdong province.
Liu Jianjun, deputy director of China Foreign Trade
Center, said the just concluded 109th version of the trade fair
saw more than 200,000 customers from 209 countries and
regions, a 3.89- percent increase over the previous version.
However, that amount was 10 percent below previous
estimates, after the turmoil in the Middle East and North
African region forced some potential buyers to cancel their
trips, Liu said, adding that was “temporary”.
The total trade volume reached 36.86 billion U.S. dollars
during the 20-day event, which boasts as China’s top trade
fair, Liu said, briefing the conference in Kuwait’s Chamber of
Commerce and Industry.
The Canton fair, a biannual event born in 1957, was
hosted by China’s Commerce Ministry and the Guangdong
provincial government.
A total of 109 fairs were held in the past years and
around 150, 000 types of commodities from China and other
countries are showcased in each session.
Liu said the 110th session would be held on October 15-
November 5, with an estimated amount of 58,600 standard
stands to be accommodated.
Statistics from the Chinese Embassy in Kuwait said
around 600 to 700 Kuwaitis visited the Canton Fair in every
session. Furniture and decoration materials are the most attractive
for these buyers. (Xinhuanet)
Sinopec to buy 4.3 mln metric tonnes
of LNG annually from Australia
China Petrochemical Corp. (Sinopec) agreed to buy 4.3
million metric tonnes of liquefied natural gas (LNG) annually
from Australia Pacific LNG for 20 years, Sinopec Group,
Sinopec’s parent company, said on April 21.
Sinopec Group said the gas will be delivered from
Queensland, Australia to a planned gas collection station in
China’s Guangxi Zhuang Autonomous Region and other
terminals.
Besides the gas deal starting from 2015, Sinopec also
will buy 15 percent of the Australian company’s shares.
Australia Pacific LNG is owned by Origin Energy Ltd.
and ConocoPhillips, with each company holding 50 percent of
its stakes. The Sinopec investment will reduce the two companies’
stakes in Australia Pacific LNG to 42.5 percent each.
The deals are subject to the final approval of both Chinese
and Australian authorities.
“The deals will help China acquire more gas supplies to
meet domestic demand. Sinopec will continue to seek cooperation
opportunities in Australia,” said Zhang Yaocang, the
company’s vice general manager.
LNG is a natural gas cooled and compressed into a liquid
so it can be transported by ship. This convenient delivery
method has made LNG a leading choice for China’s gas imports.
China imported 9.34 million metric tonnes of LNG
in 2010, up 75 percent from the previous year. The country’s
LNG consumption will continue to increase by about 20 percent
in 2011, according to Chinese energy authorities. (Xinhua)
Australia’s cougar energy to open
Beijing office for China UCG projects
SYDNEY, May 25 – Australia’s Cougar Energy Ltd.
will open an office in Beijing to grow its underground coal
gasification (UCG) projects in China and across the Asian
region, the company announced on Wednesday.
Cougar says the Beijing office will be headed by Kevin
Garner, who has been appointed as General Manager Asia
from June 1, 2011.
Garner, a chartered engineer and Chinese resident, will
be responsible for technical and operational aspects of executing
the UCG projects.
Cougar on Wednesday also announced the appointment
of Alyssa Liao as Commercial Adviser to the company.
Liao is a former private banker with UBS and HSBC and
will be based in Shanghai, Cougar says. (English.news.cn )
11

Europe
Dutch Vice Prime Minister:
NL Welcomes More
Chinese Investment
By Rose Yan
Mr. Maxime Verhagen, Vice Prime Minister
& Minister of Economic Affairs, Agriculture and
Innovation of the Netherlands
Mr. Maxime Verhagen, Vice Prime Minister & Minister of Economic
Affairs, Agriculture and Innovation of the Netherlands – together
with a large business delegation of 45 companies from the Netherlands
- visited China from May 9 to 14.
New investment projects
During his visit he met with the CEOs and senior executives of some 20
Chinese companies – from state-owned enterprises to SME’s – and discussed their
existing and future plans to invest in the Netherlands. There was strong interest
from such sectors as pharmaceuticals, chemicals, logistics, bio-tech and telecommunications,
to capitalize on the strengths of the Netherlands as Europe’s logistics
hub, its favorable tax and customs regulatory climate, and its innovative capacity in
key industry sectors.
Chinese service companies are entering the Netherlands. After the opening
of the Amsterdam branch of China’s largest bank ICBC in January, China’s largest
travel and tourism group, China International Travel Services (CITS), set up a
visa handling center in The Hague in April. It further announced during the Sino-
Dutch trade dinner on May 12 that it will open its European headquarters also in
The Hague later in the year.
During the visit many of the existing Chinese investors in the Netherlands
also expressed their intention to further expand their presence. For instance, the
world’s second largest telecom equipment manufacturer, Huawei Technology has
expanded its operations in the Netherlands from 5 staff in 2005 to over 260 this
year, including their Benelux headquarters, a European supply chain center, a European
Hosting center and a financial management company. During the visit of
the Vice Prime Minister to Huawei R & D Center in Shanghai on May 12, Huawei
has indicated their intentions to further expand their presence in The Netherlands.
More Chinese investments into NL, and acquisitions of Dutch companies.
In the last 2 years there has been an increase of Chinese investments and acquisitions
of Dutch companies in a wide range of different industries such dairy products,
software design, automotive and tooling. Early this year, the Chinese company
Ausnutria Dairy took a majority share in Dutch milk-powder producer Hyproca.
Most recently, NFIA assisted with the acquisition of Mapscape by Chinese
car navigation system manufacturer Navinfo, and on May 11 the company signed a
confirmation letter of their investment. Navinfo is already China’s market leader in
12

Following the list of priority
industries by the Dutch
Ministry Economic Affairs,
Agriculture and Innovation
(MELI), focus will be on food
& nutrition, horticulture,
high-tech, life sciences,
chemical industry, new
energy, logistics, creative
industry.
Farm in the Netherlands
Rotterdam Port in the Netherlands
this industry and through the expansion of Mapscape’s R & D capacity in the
Netherlands they will further strengthen their global position in this industry.
“Chinese companies are very welcome in the Netherlands, whether they
make greenfield investments or invest in existing Dutch businesses. I would
like to stress that the Dutch government treats all foreign investors, including
those from China, equally,” commented Verhagen.
Intensifying bilateral investment promotion: As part of the visit to
MOFCOM, Vice Minister Gao Hucheng on May 11, the First Vice Prime
Minister witnessed the signing of a Memorandum of Understanding on bilateral
investment promotion between The Netherlands Foreign Investment
Agency and their Chinese counterpart, the Investment Promotion Agency
under the Chinese Ministry of Commerce. The MoU is intended to intensify
cooperation between China and The Netherlands by exchanging information
on investment environment and by cooperating in joint investment promotion
activities. Following the list of priority industries by the Dutch Ministry Economic
Affairs, Agriculture and Innovation (MELI), focus will be on food &
nutrition, horticulture, high-tech, life sciences, chemical industry, new energy,
logistics, creative industry.
Background on Chinese investments in The Netherlands
Chinese investments in the Netherlands are growing to over 300 companies.
The Netherlands is the primary destination for Chinese companies
to set up their European distribution center (EDC) in EU, largely due to the
European logistic hub functions of the Rotterdam/Amsterdam Ports, Amsterdam
Schiphol Airport and efficiency of Dutch Customs. Over 40% of Chinese
exports enter Europe via The Netherlands and in the last twelve months The
Netherlands Foreign Investment Agency (NFIA) has been facilitating such
large Chinese corporations as white-goods multinational Midea, machinery
manufacturer Liugong and medical device
manufacturer Mindray setting up their
EDC or European headquarters in The
Netherlands.
New trend - growing Chinese interest
in Dutch talents in creative and biotech
industries: Chinese manufacturers
of consumer goods are teaming up with
Dutch companies and talents in product
design and marketing to adapt their own
brands to the tastes of the different European
markets. The world’s third largest baby
stroller manufacturer GoodBaby – headquartered
in Jiangsu Province - recently set
up their European R & D center in Utrecht
to localize their products to the tastes and
specific needs of the various European markets.
Also in the area of bio-tech, Chinese
and Dutch companies are setting up joint
ventures to engage in research and global
marketing. “Dutch and Chinese businesses
complement each other’s core competences,
creating new ventures that are more competitive
and successful in the global market,”
stressed Dutch First Vice Prime Minister
Maxime Verhagen at a CEO Roundtable
luncheon with large Chinese corporations
in Beijing.
13

Europe
China as A Growing
By Zhu Zijun
Strategic Market
for German Business
German Companies
view China as a more
strategically important
market, despite their
concerns over China’s regulatory
environment, according to a report
from the German Chamber
of Commerce in China.
German Companies in
China have seen improvements
in their financial results upon
pre-2008 economic crisis and are
optimistic about their further
growth.
For German business, the
importance of China’s market has
increased. Over the last two years,
the number of German companies
in China registered with the
German Chamber Network has
grown by about 700 totaling up
to currently roughly 4,300 across
Greater China.
In 2010, China became the
biggest target for German foreign
investment according to a study
released by the Association of German Chambers of Industry and Commerce (DIHK).
85 percent of these companies invest in China with the goal to develop in the market
and expand sales.
“Business requests reaching us here in Greater China significantly shifted from
production related topics to requests focusing on China as a sales market. Also requests
for qualified personnel went up steeply,” said Alexandra Voss, Delegate &
Chief Representative of German Industry & Commerce in Beijing.
Though German companies have more expectations for their future performance
in China, they find themselves in a more competitive environment, facing increased
competition from both international and Chinese competitors.
China’s booming economy and its focus on promoting its domestic market make
it an attractive investment destination for foreign and local companies alike. This is
leading to increased competition across industries and markets in China.
Meanwhile, Chinese companies are catching up with their foreign competitors,
improving in brand recognition, marketing and sales capabilities, and product quality.
Although the growing Chinese competition constitutes a visible challenge to
German business, the ambitious goals of the recently released 12th Five Year Plan
can hardly be reached without foreign expertise.
The rising demand for high technology and the promotion of green industry
solutions are key components of Chinas economic future. German companies with
their traditionally strong portfolio in these sectors are most likely to profit from this.
Various projects have been conducted jointly by the German Chamber Network
in Greater China with the Chinese government, in order to promote a sustainable
economic development while making use of German experience and expertise.
While, compared with last year, German companies have more concerns over a
perceived unfair playing field and regulatory environment. This raises questions about
China’s claim to be an equal opportunity
market and the attractiveness of China in the
longer term as a place to do business for some
companies.
The Transparent definition and subsequent
implementation of regulations is one
of the main concerns for German companies
at present. In close cooperation with the European
Chamber and other National Chambers
of Commerce, the German Chamber
Network is in continuous and consistent dialogue
with the Chinese government on these
concerns.
The Sino-German talks on Economic
and Technical Cooperation in July this year
will also offer an opportunity to address
present regulatory issues of German companies
in China.
14

Europe
16
TRADE
China protests EU first anti-subsidy
duties on Chinese goods
BEIJING, May 14 — China opposes the European
Union’s decision to impose its first-ever anti-subsidy and antidumping
duties on imports from China, said Ministry of
Commerce (MOC) spokesman Yao Jian on Saturday.
Yao made the remarks in a statement on the MOC
website after the EU announced its anti-subsidy and antidumping
duties on Chinese coated fine paper — used for
high-quality printing.
The EU has violated the World Trade Organization
(WTO) rules by imposing both anti-subsidy and anti-dumping
trade remedies on the same goods, Yao said.
The Chinese government and enterprises provided much
evidence to show the coated fine paper industry in China is a
competitive one where market economy principles are applied
and the government never intervened in company operations
or goods pricing, Yao said.
The EU ruling contravened many WTO rules and seriously
impaired the interests of Chinese enterprises, Yao said.
China and the EU should oppose trade protection, avoid
abuses of trade remedies and properly tackle trade frictions
through negotiations, Yao said.
China will carefully study and evaluate the final ruling
and reserve its right to take legal action accordingly to protect
the interests of Chinese enterprises, Yao said.
The anti-subsidy duties will range from about 4 percent
to 12 percent and the anti-dumping tariffs will range from 8
percent to 35.1 percent.
The dual duties would last for the next five years and
could be extended if the expiry leads to a recurrence of injury
to the European paper industry, the European Commission
said.
The EU launched an anti-dumping investigation into
imports of Chinese coated fine paper in February 2010, followed
by an anti-subsidy investigation two months later.
(Xinhua)
Latest China-EU trade frictions not trade
war: official
BEIJING, May 17 — The latest trade frictions between
China and the European Union (EU) do not amount to a
trade war, said Ministry of Commerce (MOC) spokesman
Yao Jian on Tuesday.
It’s not surprising for China and the EU to have trade
disputes as the two sides have maintained large trade volumes
over the past years, said Yao at a routine press release.
“For some products, there might be a lasting legal disputes.
But the total dispute ratio will be very low between 1
to 3 percent,” he said.
Yao’s remarks came after the EU slapped its first-ever antisubsidy
and anti-dumping duties on coated fine paper imported
from China and China found that EU members had subsidized
domestic production of potato starch exported to China.
Yao reiterated China’s protest against the EU’s anti-subsidy
decision on coated fine paper and questioned its practices
to use evidence from a substitute country and reject information
from Chinese enterprises.
As for the country’s investigation into the potato starch
from the EU, he explained that it was at the request of the
China Starch Industry, which represents 98 percent of the
industry’s output.
“The investigation, which lasted two and a half months,
was in line with China’s laws and WTO rules. We also adopted
data from the EU enterprises,” he added.
The country said in an initial ruling that it will impose
an anti-subsidy provision of the tariff on potato starch products
imported from the EU effective from May 19, according
to the MOC. (Xinhua)
EU-China green co-op working well: EU
official
European Union (EU) and China share similar views
over the development of green economy and cooperation of
the two sides in this field is working well, said an EU senior
official on May 24.
China has recognized the significance of the green
orientation of its economy, which is not only necessary, but
also could be “profitable”, European Commissioner for the
Environment Janez Potocnik told Xinhua on the opening
ceremony of EU’s 11th Green Week.
The year 2011 is the first year of implementation of both
the “Europe 2020” Strategy and the China’s 12th Five-Year
Plan, which are equally concerned about environmental issues
and set long-term sustainable growth targets.
The Chinese 12th Five-Year Plan stresses the need to
reduce the environmental costs of development and calls for
building a resource-efficient and environment-friendly society.
Similarly, the Europe 2020 Strategy aims at encouraging
a shift towards a resource-efficient and low-carbon economy.
“There are many things on which we believe that we can
share our views. We very much cooperate inside all the international
conventions, I have pretty regular meetings with
representatives of the Chinese government and I could say
this relation is working really well,” continued Potocnik.
Europe set specific targets in terms of energy production,
efficiency and consumption, which would reduce 60
billion euros ($84.6 billion) worth of oil and gas imports by
2020. The Chinese 12th Five Year Plan also set concrete
objectives, such as raising the share of non-fossil fuels in primary
energy consumption to 11.4 percent and introducing an
environment-based evaluation system.
“China has understood there is a need for an efficiency
revolution,” commented Professor Ernst von Weizsacker,
a member of the United Nations Environment Program
(UNEP) International Resources Panel.
The 11th Green Week, the biggest annual conference on
European environment policy, would last till Friday. (Xinhua)

INVESTMENT
Sino-Russian crude oil refinery to start
construction in north China
TIANJIN, May 22 — The construction of a Sino-
Russian crude oil refinery is expected to start in the northern
industrial city of Tianjin in the second half of the year, local
officials said.
Oriental Refinery, the joint venture with an investment
of 30 billion yuan (4.62 billion U.S. dollars), was co-funded
by PetroChina Company Limited and Russia’s Rosneft. It is
designed to process 13 million tonnes of crude oil every year.
“The project is a priority for construction. We hope it
can start operation by 2015,” said Wang Junming, general
manager of the Nangang industrial zone development firm,
where the project is located.
The Sino-Russian refinery is expected to generate an annual
revenue of 60 billion yuan once operation commences.
Wang said the authorities aim to build a complete industrial
chain from oil refining to petrochemical engineering
in the zone.
In Tianjin, Sinopec is operating a 10-million-tonnes/
year refinery, which has ethylene production capacity of 1
million tonnes/year and is building a crude oil storage depot.
PetroChina’s crude oil storage depot, with capacity of 1 million
tonnes, went into operation in 2010. (Xinhua)
Italy’s economy stir concern across
China
BEIJING - The lower outlook for Italy’s sovereign debt
triggered wide concern across China as it could add uncertainty
to the bumpy recovery of Europe, the country’s largest
trading partner. However., some analysts said the concerns
are unnecessary.
Zhuang Jian, senior economist at the Asian Development
Bank, told China Daily that because Italy is a major
eurozone economy, its downgraded outlook could negatively
affect views of the economic situation of Europe as a whole,
and affect China’s exports to some extent.
However, it is still too early to assess clearly, Zhang said.
“Although it may add to concern about the region, there will
be no crisis because key global institutions, such as the International
Monetary Fund (IMF), have already evaluated the
European sovereign debt problem and prepared plans to deal
with possible risks.”
Standard & Poor’s, a prominent rating agency, downgraded
the outlook on Italy’s government debt from stable to
negative on May 21, mainly because of concern that the government
may struggle to cut the country’s vast public deficit.
The downgrade indicates there is a one-in-three chance
that Italy’s credit rating will be downgraded in the next 24
months, it said.
“In our view, Italy’s current growth prospects are weak, and
the political commitment for productivity-enhancing reforms
appears to be faltering, and potential political gridlock could
contribute to fiscal slippage,” Standard & Poor’s credit analyst
Eileen Zhang said. “As a result, we believe Italy’s prospects for
reducing its general government debt have diminished.”
The move stirred more concerns about European sovereign
debt shortly after the eurozone countries approved a
78 billion euro ($110 billion) bailout - with a contribution
from the IMF - for Portugal on May 16. Portugal is the third
victim of the sovereign debt crisis after Greece and Ireland.
Some countries were concerned that the crisis would spread
from Greece, Ireland, Portugal, and Spain to the region’s major
economies.
But according to Dong Xian’an, chief economist at Peking
First Advisory, S&P’s decision is groundless, and Italy has been
on the track for recovery since the second quarter, while the economic
growth of the United States and Europe has slowed.
He said that the judgment of rating companies is not
reliable and there is no reason to worry about Italy. “Instead,
the ongoing overtightening measures of China’s central bank
are likely to hurt the global economy, including Italy and all
of Europe, in the future, and that would in turn make the
world’s second-largest economy suffer,” he said.
Giulio Tremonti, Italy’s finance minister, characterized
S&P’s move as “strange”. He said the decision was made
without “even one example of a decline in the economy or
public finances to justify downgrading the forecast”.
The European Commission, the International Monetary
Fund and the Organisation for Economic Co-operation and
Development (OECD) had made “very different” appraisals
of the condition of the country’s financial health, according to
the Italian Treasury.
The third-largest eurozone economy won’t return to its
pre-recession level for at least another two years, the OECD
said in a report.
Italy has one of the highest levels of public debt in the
world - 120 percent of GDP - but has succeeded in reducing
its deficit, according to Agence France-Presse.
In April, the Italian government cut its forecast for economic
growth in 2011 to 1.1 percent from previous estimates
of 1.3 percent, and to 1.3 percent in 2012 from 2 percent.
(China Daily)
Sino-German JV in Tungsten processing
planned
H.C. Starck, the world’s leading refractory metals and
advanced ceramics supplier based in Germany, will build
two joint ventures in the city of Ganzhou of eastern China's
Jiangxi province.
According to an agreement between the German company
and Jiangxi Rare Earth & Rare Metals Tungsten Group
Holding Co, Ltd (JXTC), the two joint ventures will engage
in intensive processing of tungsten and manufacturing of related
products.
Cost of the two joint ventures is estimated at 80 million
euros ($112 million). They will annually produce around
30,000 tons of fine tungsten products beginning 2012. The
products will be mainly offered on Asian markets.
This will be the biggest investment project H.C. Starck
launches in China. (Xinhua)
17

NORTH AMERICA
US
Companies Optimistic About
Their Prospect in
China
By Yan Manman
IT SHOULD NOT
BE SURPRISING
THAT 83 PERCENT
OF RESPONDENTS
REPORTED THAT
THEY PLAN
TO INCREASE
INVESTMENT IN
CHINA IN 2011.
IN GENERAL,
CONFDENCE IN THE
MARKET IS HIGH,
EXPANSION IS THE
MEDIUM-TERM
OBJECTIVE AND
MANAGING GROWTH
IS THE IMMEDIATE
PROBLEM.
US companies perform well in
China, with increasing optimism
about the prospect
According to the White Paper released
by the American Chamber of Commerce in
China(AmCham-China), among their survey
respondents, 85 percent reported revenue
growth in 2010; 78 percent reported
profitable or very profitable performance; 63
percent reported margins improved over the
prior year; and 41 percent reported margins
in China were better than global margins.
Given these results, the scale of the market
and its projected future growth, it should
not be surprising that 83 percent of respondents
reported that they plan to increase
investment in China in 2011. In general,
confdence in the market is high, expansion is
the medium-term objective and managing growth is the immediate problem.
However, US investment in China dropped sharply by 28 percent, while foreign
direct investment (FDI) maintained double-digit growth from January to April, the
Ministry of Commerce said on the routine press conference on May 17. US investment
from January to April decreased to $1.03 billion and the number of US firms setting
up in China also fell by 3.85 percent to 475. In contrast, European Union investment
rose by 23.42 percent to $2.64 billion. Investment from the Asia-Pacific region,
including Japan, South Korea and Singapore, registered growth of 31.23 percent to
$32.88 billion.
Economists said they believed the US investment decline is temporary, and the
Chinese economy, over the long term, will provide US companies with increased investment
opportunities.
“US businesses are generally positive about China’s investment environment,”
Yao Jian, commerce ministry spokesman, said at the news briefing, “so the short term
decline may be owing to the statistic methods. Some American companies registered
in Hong Kong and Asia were categoried into the item of Asian companies.”
While Tu Xinquan Professor and Vice Dean of WTO Research Institute, University
of International Business and Economics expressed this was just a short-term
data, which can not reflect the trend.
“US investment could drop further over the short-term,” Song Hong, head of the
Department of International Trade at the Chinese Academy of Social Sciences, said.
Song attributed this to a decline in US manufacturing, a key component of US
investment, following the global financial crisis. He also said that with the recovery in
18

the US economy, businesses that had
invested in China were returning to the
US market.
But others cited rising labor costs
as a reason.
China announced in April 2010
that it would try to attract more foreign
investment in the high-tech, energy and
service sectors, a switch in focus from
low-end manufacturing.
“We expect the US to encourage
more high-end investment into China,
particularly in the service sector,” Yao
said.
The White Paper also expressed
their confidence in the opportunities
in next 5 years in China. It said that
China’s 12th Five-Year Plan realistically
proposes the goal that China grow
at a slower rate of seven percent per
year and shift to a domestic demanddriven
model. This will require growth
of house-hold income, development
of services, and large investments in
education, healthcare and the pension
system.
There will also be large investments
in energy efficiency and new
technology intended to increase productivity.
Senior leaders have stated that
successful execution of the 12th Five-
Year Plan necessitates deepening and
accelerating reform and opening, and
giving greater scope for foreign capital
in China’s markets.
Still with some worries
The AmCham China listed the
problems that their member companies
confronted in China and proposed
some suggestions for both governments.
According to their survey, the top five
business challenges were:
• Bureaucracy,
• Management-level human resources constraints,
• Unclear laws and regulations,
• Inconsistent regulatory interpretation, and
• Intellectual property rights (IPR) infringement.
It is striking that three of the top five challenges relate directly to government
performance and one relates indirectly in the sense that enforcement by
the authorities has been inadequate to deter intellectual property rights infringement.
This theme continues if issues are looked at further down the list:
Corruption,
• Obtaining required licenses,
• Non-management level human resources,
• National protectionism,
• Local protectionism, and
• Diffculty enforcing contract terms.
When asked about the opinion on the problems and suggestions that the
White Paper proposed to the Chinese Government, Yao Jian, spokesman of the
MOFCOM expressed most of their suggestions were reasonable and the Chinese
Government should take measures to improve.
Christian Murck, President of AmCham China, expressed his great appreciation
on Chinese government’s extension for the 6-month campaign of crashing
down IPR breaching acts.
At the 3rd round of S&E D, Chinese Government also pledged to strengthen
the IPR protection and further improve the business environment etc.
While on the high-tech products export control issue, China have been urging
the US to ease the control. The AmCham China also expressed that the overly
restrictive regulations and policies result in ineffective controls and unintended consequences,
such as lost US export opportunities and diminished revenues for US
companies that harm US economic and national security goals. Before the S&E D,
Christian Murck, told the reporter that they would do some lobby in Washington
on this issue. At this round of Dialogue, the US promised to ease the control and
try to acknowledge China’s market economy status as soon as possible.
S&E D should help further mutual economic cooperation
On May 10, the two-day 3 rd round of Sino-US Strategic & Economic Dialogue
ended in Washington with the two sides signing 112 agreements, of which
64 are in economic sector and 48 are on strategic level. U.S.-China Comprehensive
Framework for Promoting Strong, Sustainable and Balanced Growth and Economic
Cooperation was also signed in this round of Dialogue. “The United States
and China affirm that both countries will, based on common interest, promote
more extensive economic cooperation, from a strategic, long-term, and overarching
perspective, to work together to build a comprehensive and mutually beneficial economic
partnership, add to prosperity and welfare in the two countries, and achieve
strong, sustainable, and balanced growth of the world economy,” noted the framework.
Both countries aimed at taking measures to promote more
balanced bilateral trade, resolving trade and investment disputes
in a constructive and cooperative manner, exploring new cooperation
opportunities in the process of transforming and restructuring
their economies, developing sub-national economic cooperation and
deepening cooperation in the financial sector.
“Generally, this round of dialogue is very positive. And both
China and US tried to avoid quarrel on the dispute, but more on
dialogue, pledging on reducing the barrier for mutual investment
and trade exchange in their respective domestic countries. Though
I am not optimistic about the US’ commitment on acknowledging
China’s market economy status, I still say the Dialogue is positive
and helpful for the cooperation of the two countries.” Tu Xinquan,
told the reporter.
19

NORTH AMERICA
TRADE
China reports trade surplus of
US$11.43b in April
China announced on May 10 a trade surplus of
US$11.43 billion in April this year, according to data released
by the General Administration of Customs.
China posted a trade surplus of US$140 million last
month, following the US$7.3-billion trade deficit in February.
China’s export in April rose 29.9 percent year-onyear
to US$155.69 billion, mark a new historic high since
last December’s US$154.12 billion. April’s import stood at
US$144.26 billion, up 21.8 percent from a year earlier. Total
trade in April was US$299.95 billion, up 25.9 percent from
same time last year. (China.org.cn)
China urges US to lift hi-tech export
controls
Chinese Vice Premier Wang Qishan urged the United
States to “set a clear timetable and roadmap” for relaxing its
high-tech export control regime and recognize China’s market
economy status.
Wang made the remarks at the opening of the third
round of the China-U.S. Strategic & Economic Dialogue
(S&ED) in Washington D.C.
Wang also called on the U.S. to offer Chinese companies
fair access to investing in the U.S. and avoid “politicizing
economic and trade issues”.
“The two sides need to fully accommodate each other’s
concerns and deliver real benefits to our two peoples through
concrete results from the dialogue,” said Wang.
According to Wang, open trade and investment policies
are crutial to promoting innovation, creating jobs, increasing
income and boosting economic growth.
Chinese Commerce Minister Chen Deming also
pressed the U.S. to lift high-tech export restrictions to China.
“Because the U.S. restricts its export of high technology to
China, American companies suffered a lot in terms of losing
market share in China, “ Chen said at a press briefing.
It’s unfair that the U.S. still imposes licensing requirement
on more than 2,000 items that to be exported to China,
Chen noted. US manufacturers are required to clarify their
end-users and end-use in China before they could export
these items to the country.
Last December, the US granted preferential trade rights
to a total of 164 countries, said Chen, but China was excluded
from the list.
Such acts is not in line with the consensus that Chinese
President Hu Jintao and US President Barack Obama agreed
to in January to forge a “new relationship”, open a “new position”
and give a “new strength” to China-US relationship,
Chen said.
The two-day S&ED is co-chaired by Chinese Vice Premier
Wang Qishan, State Councilor Dai Bingguo and U.S.
Secretary of State Hillary Clinton and Treasury Secretary
Timothy Geithner.
The dialogue mechanism was upgraded from former
Strategic Dialogue and biennial Strategic Economic Dialogue,
which were initiated by the two heads of state in 2005
and 2006, respectively. (Xinhua)
US accused of dumping cars
On May 5th, China accused car makers in the United
States of dumping sedans and cross-country vehicles with
engine capacity of 2.5 liters and above in the Chinese market,
and the US government had subsidized the exports.
But China will not immediately impose anti-dumping
tariff and countervailing duties on the US cars, the Ministry
of Commerce said.
But the ministry said in its final ruling issued yesterday
that the dumping and subsidies have caused damage to
China’s auto industry.
Car makers in the US, including General Motors,
Chrysler, Mercedes-Benz, BMW and Honda, are accused of
dumping their autos with dumping margins ranging from 2
percent to 21.5 percent.
GM’s dumping margi is 8.9 percent, and Chrysler’s is 8.8
percent.
The ministry’s ruling also said the subsidy rates for cars
imported from the US market ranged from 6.2 percent to
12.9 percent.
“The ruling won’t have a huge impact on the overall
performance of US car makers in China as auto imports still
account for a small part of their sales in China,” Zhong Shi,
an independent auto analyst, said.
Last year, China imported about 80,100 vehicles from
the US, according to the China Association of Automobile
Manufacturers. The US was the fourth largest country for
auto exports to China.
GM, which sell imported Cadillac CTS coupe, SRX
crossover, Escalade sport utility vehicle and Buick Enclave
SUV in China, said
auto imports account
for less than 0.5 percent
of its Chinese
production.
Chrysler sells
imported PT Cruiser
and Jeep models in
China.
China launched
the probe into auto
imports from the US
on November 6, 2009, on models with engine capacity of 2.0
liters or above. Later it also covered models with engines of
2.5 liters or higher. A preliminary ruling was issued in early
April.
Under Chinese law, parties can apply for an administrative
review or file a lawsuit if they disagreed with the final
ruling. (Shanghai Daily)
20

INVESTMENT
Investment from US declines 28%
US investment in China dropped sharply by 28 percent,
while foreign direct investment (FDI) maintained doubledigit
growth from January to April, the Ministry of Commerce
said on May 17.
Economists said they believed the US investment decline
is temporary, and the Chinese economy, over the long
term, will provide US companies with increased investment
opportunities.
US investment from January to April decreased to $1.03
billion and the number of US firms setting up in China also
fell by 3.85 percent to 475.
In contrast, European Union investment rose by 23.42
percent to $2.64 billion. Investment from the Asia-Pacific region,
including Japan, South Korea and Singapore, registered
growth of 31.23 percent to $32.88 billion.
The ministry said that FDI for April rose by 15.21 percent,
from a year earlier, to $8.46 billion, the fourth month
that FDI witnessed double-digit growth this year.
“US investment could drop further over the short-term,”
Song Hong, head of the Department of International Trade
at the Chinese Academy of Social Sciences, said.
Song attributed this to a decline in US manufacturing,
a key component of US investment, following the global financial
crisis. He also said that with the recovery in the US
economy, businesses that had invested in China were returning
to the US market.
But others cited rising labor costs as a reason.
“We cannot ignore the fact that investment into China
from developed nations, including the US, is slowing thanks
to China’s rising labor costs,” said Zhang Yansheng, director
of the Institute for International Economic Research under
the National Development and Reform Commission.
US investment in China in 2010 grew by 13.31 percent
year-on-year, compared to 31 percent for its total overseas
investment, according to the United Nations Conference on
Trade and Development.
From January to April, China’s overseas direct investment
(ODI) grew by 17.5 percent to $13.4 billion, with just
over 31 percent, or $4.2 billion, involving mergers and acquisitions.
(China Daily)
Major achievements for China-U.S.
economic cooperation during S&ED
Economic cooperation between China and the United
States has seen major achievements during the third-round
China-U.S. Strategic and Economic Dialogue (S&ED), Chinese
Vice Finance Minister Zhu Guangyao said on May 10 at
a press conference after the conclusion of the two-day event.
The economic part of the S&ED is quite successful with
concrete outcomes and in-depth discussions, noted Zhu.
A key achievement of the economic dialogue is that
the two countries signed the U.S.-China Comprehensive
Framework for Promoting Strong, Sustainable and Balanced
Growth and Economic Cooperation. This is a milestone for
China-U.S. economic cooperation, said the official.
During his state visit and talks with U.S. President
Barack Obama in January, Chinese President Hu Jintao had
made clear that China would promote comprehensive cooperation
with the United States, said Zhu.
The two presidents also pledged to establish a framework
of comprehensive cooperation between the two countries. “Today,
the two leaders’ vision has become reality,” Zhu said.
China and the United States also reached consensus on
a host of bilateral economic issues, including Chinese investment
in the United States, said the official.
“I hope this win-win cooperation can be further promoted,”
he added.
The two-day S&ED was co-chaired by Chinese Vice
Premier Wang Qishan, State Councilor Dai Bingguo, U.S.
Secretary of State Hillary Clinton and Treasury Secretary
Timothy Geithner.
The dialogue mechanism was upgraded from the former
Strategic Dialogue and biennial Strategic Economic Dialogue,
which were initiated by the two countries in 2005 and
2006, respectively. (Xinhua)
Chinese internet firms rush for a US
listing
More domestic Internet companies are mulling a US
listing after Renren.com and NetQin Mobile Inc. landed on
the New York Stock Exchange (NYSE) recently.
Renren.com saw its shares surging 28.6 percent in its
debut on May 4, while shares of NetQin tumbled more than
13%, marking the worst first-day performance of any initial
public offering (IPO) so far this year in the U.S.
Despite the mixed performances, more Chinese Internet
companies are lining up for an IPO on the US stock market.
Cloudary Corporation, a wholly-owned online literature
business unit of Shanda Interactive Entertainment Ltd., and
Hexun.com, China’s largest business news website, are in the
process of a listing in the United States.
Several other companies are also planning to go public
on the NYSE this month, including Shanghai-based TaoMee
Inc., which runs a social-networking website for Chinese
children, and Shenzhen Xunlei Network Technology Ltd,
a video and music file-sharing company partly owned by
Google Inc.
Analysts believe that the listing boom by domestic
Internet companies may be partly because of the successful
debuts of Youku.com and Dangdang.com by the end of last
year.
The year of 2011 marks the fourth round of the dot-com
IPO boom, said some industry insiders. The first round happened
in 1999 to 2000 when portal websites such as Sina, Sohu
and Netease went public. The second round came in 2003 and
2004 as Ctrip.com, Tencent Holdings, Shanda, Jrj.com and
51job.com got listed. The year 2007 saw a third IPO rush, with
Alibaba.com and ZTgame.com listing. (China.org.cn)
21

NORTH AMERICA
By Tao Haiqing
China-U.S. Trade Surges
A
stable China-U.S. economic and trade
relationship is more important than ever.
“The U.S. commits to accord China fair
treatment in the reform of its export control
regime and relax high-tech exports control towards
China,” Chinese vice-premier Wang Qishan said at
the China-U.S. Strategic and Economic Dialogue
held in Washington from May 9 to 10, which is bound
to usher in new opportunities for greater cooperation
between the world’s two largest economies.
China has been the fastest-growing major export
market of the United States for 10 consecutive years.
China and the United States trade value reached $385
billion in 2010, a 160-fold increase compared to before
the point when diplomatic ties were established. In
terms of the lastest investment sector, a new trend for
growing trades and investments between China and
the United States has emerged.
The dialogue promotes cooperation
This is the “new orientation” of China-U.S. relations
in the new era. The China-US Strategic and
Economic Dialogue deeply exchanges views on issues
related to the overall, strategic and long-term development
of bilateral relations. A key achievement of this
is the two countries signed the China-U.S. Comprehensive
Framework for Promoting Strong, Sustainable
and Balanced Growth and Economic Cooperation.
Besides, China pledged to change regulations so
that government contracts are not linked to improvements
in its domestic technology base. China also
promised improvements in the enforcement of intellectual
property. While the U.S. promised to consider
Chinese request for “fair treatment” over exports of
sensitive American technology. In addition, the two
sides agreed to discuss export credits for the first time.
“The cooperation between China and the United
States plays a critical role in addressing certain global
issues,” said Orville Schell, director of the Center on
China-U.S. Relations at the New York-based Asia Society,
“The China-U.S. relationship is complicated, so
seeking common ground to promote cooperation has
become a key feature of the dialogue.”
Analysts deem that China seeks balanced trade.
The U.S. should vigorously expand exports to China.
Only balanced China-U.S. trade could bring about
sustained development and mutual benefits.
Chinese investment increases
The China-U.S. Strategic and Economic Dialogue
have burst a new topic: direct investment by
Chinese firms in the United States. “The U.S. welcomes
Chinese investment in the U.S. and it’ll be all
good for both China and the U.S.” said Secretary of
Treasury Department Timothy Geithner, Chinese investments
in the United States are going to expand in
the future.
A new report predicts that China will invest up
to $2 trillion in foreign companies over the next decade,
with a growing share flowing into cash-starved
small businesses in the United States.
A study also shows that over the past two years
direct investment expenses by Chinese firms in
America have grown more than 130% a year. In 2010
alone, Chinese direct investment in the U.S. reached
$5 billion, more than doubling from the previous year,
according to Daniel Rosen and Thilo Hanemann, researchers
at the New York-based Rhodium Group.
Chinese investment offshore began to take-off
in the last decade, spurred primarily by the drive to
secure resources and a need to deploy productively the
huge cash reserves accumulated through exports and
profits at home.
Since 2008, Chinese investment has mainly focused
on American manufacturing. In result, China
has a business presence in 35 out of the 50 states in the
U.S., with the largest concentration of investments in
Texas. Recently, real estate purchases have also been
growing. It is profit that is driving Chinese firms to
invest in the U.S.. With over-investment leading to
excess capacity, Chinese companies increasingly see
greater profit opportunities across the Pacific.
“We believe the great bulk of potential Chinese
investment should not just be permitted but encouraged,”
said Daniel Rosen and Thilo Hanemann. Obviously,
if the U.S. rejects Chinese investments, they
will simply go elsewhere.
America gains much
Americans could be a major beneficiary. Chinese
investors are increasingly looking for mergers and acquisitions
with early-stage companies in clean-energy,
information technology and other sectors as an entree
into the U.S. market. So far, Chinese investing in the
U.S. has already created 10,000 American jobs.
In fact, since the outbreak of the international
financial crisis, China has been supporting America to
tackle its issues.
On the one hand, China has increased imports
from the U.S.. While overall U.S. exports dropped
17.9% in 2009, exports to China remained the corresponding
period level. Chinese market has become a
shelter for many U.S. manufacturing firms against the
global financial storm.
On the other hand, cheap and fine Chinese products
have made Americans remain low cost of living.
Without consumer Chinese goods, the U.S. price index
would go up an extra 2 percentage points every year.
In all, China-U.S. trade and economic cooperation
have generated huge benefits for the United States.
Analysts think that China and the United States economies
are highly complementary with huge potentials.
The mutually beneficial trade and investment will spur
both countries’ economic growth.
22

Africa
INVESTMENT
Sino-African fund set to swell in 5 years
The second phase of raising capital will be concluded
at the end of 2011. The China-Africa Development (CAD)
fund, the country’s biggest equity fund targeting African
investments, is set to expand to $5 billion in the coming five
years, said Chi Jianxin, president of the fund.
“We expect to finish raising the fund’s second phase of
$2 billion by the end of this year and will kick off the third
phase afterwards,” Chi said in an exclusive interview with
China Daily.
Based on current operations, the size of the fund may
eventually exceed $5 billion, even though several conditions,
such as an efficient exit channel, are required, he said.
The CAD fund was set up in 2007 as China's major investment
vehicle in Africa, after President Hu Jintao pledged
to establish it at the Beijing Summit on China-Africa Cooperation
in 2006.
An initial sum of $1 billion was provided by China Development
Bank (CDB), and the fund was planned to expand
to $5 billion finally, although no specific timetable had been
drawn up.
CDB will also help in the second phase fundraising,
said Chi, who was the director of CDB’s Investment Banking
Department before his appointment as president of the fund
upon its foundation.
“We expect more capital from other institutions will
join in during the third round of capital raising,” he said.
So far, the fund has decided to invest $1.3 billion, including
$600 million that has already been invested, in more
than 40 projects covering more than 20 countries on the African
continent.
“We’re very cautious on our investments when making
decisions,” Chi said. The fund's investment focuses mainly
on the processing industry, including construction materials,
automobiles, and household electrical appliances, in addition
to agriculture, mining, and infrastructure areas.
All the projects will facilitate more than $5 billion additional
capital investment to the continent, and will provide
more than 100,000 jobs, Chi said.
The fund, for instance, is in talks with Chery Automobile
Co to invest in an automotive assembly plant project in
Africa.
Buoyed by Chinese investors’ feverish enthusiasm in
Africa, China’s investment in Africa surpassed $1 billion
in 2010 from mere tens of millions of US dollars in 2000.
Meanwhile, bilateral trade in 2010 rose to $124 billion, more
than 11 times higher than in 2000, according to Xinhua
News Agency reports.
The central government is urging that equal importance
be given to attracting foreign investment and encouraging
domestic investors to go abroad during the 12th Five-Year
Plan period (2011-2015), the first time the country has emphasized
overseas investment and will spur even more domestic
investment to go abroad, analysts said.
“We plan to invest more in ‘mega projects’ within the
next five years, such as transportation and harbor construction,”
Chi said. “As a financial investor, we're also actively
seeking partnerships with domestic strategic investors for big
projects.”
In addition, Chi said that the fund has started adopting
a mergers-and-acquisitions (M&A) strategy to curtail the
investment period.
“We will seek some M&A opportunities in the future
to offset the longer cycle of new projects starting from zero,”
Chi said.
So far, the fund has set up offices in South Africa, the
continent’s biggest economy, Ethiopia, which has attracted a
number of projects, and Zambia. The fund is also planning to
set up additional offices in countries in western and northern
Africa. (China Daily)
China-SADC investment forum
held in South Africa
China, South Africa’s leading trade partner which has
been in the past focusing its investment interests in the country’s
mining and manufacturing sectors will soon “diversify”
to other economic sectors and industries promoting job creation
in South Africa, the Chinese investment body revealed
on May 19.
“South Africa is increasingly becoming China’s investment
focus and China wants to diversify its investments in
South Africa to other sectors of the economy such as information
technology, biotechnology, human resources and
other industry services,” China Industrial Overseas Development
and Planning (CIODP) Vice President and Secretary
General Fan Chunyong said at the China and SADC Investment
Conference held at Sinosteel Plaza in Johannesburg.
“These investments (will) help to create more job opportunities
and improve work skills. Investment towards improving
infrastructure will also promote (and) enable economic
development in SADC,” Chunyong told the conference attended
by South Africa senior government officials.
The SADC is acronym for the Southern African Development
Community, a regional body that comprises countries
in Southern Africa only.
The conference attended by several Chinese business
leaders and investors was organized by the China Industrial
Overseas Development and Planning Association, the South
African Department of Trade and Industry (DTI), the
SADC secretary and the AfrAsia Bank. It aims to promote
more trade and investments opportunities between China
and the SADC, taking advantage of South Africa’s fast
growing economy and membership to international bodies
such as BRICS.
BRICS is an acronym for Brazil, Russia, India, China
and South Africa, a grouping that provides its members with
opportunities to initiate economic arrangements.
The conference’s theme was “Capturing the SADC Opportunities”
as under BRICS arrangement South Africa is
expected to push for the SADC to integrate trade and policies
with the other members. (Xinhuanet)
24

TRADE
China’s Trade Rush with Africa
The BRICS leaders met at the third BRIC summit in
Sanya, Hainan, on April 14. South Africa’s first official participation
to this summit means the extension of the BRIC
group to BRICS. Partnering with the largest economy in
sub-Saharan region and the de facto leader of southern Africa
will provide strategic access to the African market for the
other BRICS countries.
China and African trade corridor was formed in the
1950s, but it only started to prosper since 2000. The trade
between China and African countries reached a new high of
126.9 billion US dollars in 2010.
China-Africa trade figures are seemed to be relatively
balanced, as China’s exports to African countries are almost
equal to its imports from the African countries. However, the
balance in the trade figures doesn’t necessarily mean a real
balance. As a matter of fact, the trade between China and
Africa is uneven in both terms of geographical distribution
and commodity categories.
The trade volume between African countries and China
varies from country from country. Angola is the biggest trading
partner of China in Africa with an average annual trade
of over 18.6 billion US dollars; next comes South Africa with
an average annual trade of 16.7 billion US dollars. Among
China’s top 10 African trading partners, 6 are oil exporters
and 3 have diversified economy. The trade between China
and its top 10 African trading partners accounts for 76% of
the total trade between China and Africa, reflecting a significant
concentration in China-Africa trade.
From China’s perspective, Africa may be a strategic provider
of natural resources; but on the other hand, more and
more African countries have become China’s export destinations
with significant market
potentials.
Concerning categories of
traded goods, China’s imports of
natural resources from Africa is
the driving force behind China-
Africa trade boom. China’s
imports from Africa are dominated
by primary products. Since
2004, China’s import of primary
products accounts for over 90%
of total African imports. Among
them, fuel accounts for the
majority of Africa’s exports to
China (64% of the total China-
Africa trade in 2009), followed
by iron ore and metals (24%),
other bulk commodities, food
and other agricultural products
(5%).
From 2000 to 2009, the
share of iron ore and metals in
China’s African imports in-
creased steadily from 12% to 24%. Chinese companies are
stepping up development of African market and exploring the
copper market in Zambia, copper and cobalt market in Congo
(DRC), aluminum market in Mozambique and Guinea.
Especially over the recent five years, China’s share in the iron
ore and metal exports of Africa has been rising sharply.
From the perspective of China’s export structure to Africa,
it has experienced certain changes over the past years. In
2000, China’s exports to Africa are nearly evenly distributed
in several areas including textiles & clothing (accounting for
28% of the total African exports), machinery & transportation
equipment (27%), and other manufactured goods (26%).
Since then, China’s exports to Africa began to transform,
upgrading from low-end textile and garment exports
to high-end capital goods exports. In 2009, machinery &
transportation equipment accounted for the largest share (41%
of the total) in China’s exports to Africa, including communications
equipment (20%), road transport vehicles (19%) and
electronic machinery (18%).
Most African countries that have a trade deficit with
China are paid back with access to low-cost capital goods
export from China in favor of their respective national infrastructure
investment; as lack of infrastructure is viewed as one
of the greatest obstacles to African economic development.
Africa will be able to significantly reduce economy operating
costs and become more attractive to overseas investors if it
could improve its municipal infrastructure facilities, which is
consistent with the purpose of China’s overseas investment.
China’s capital investment in sub-Saharan Africa’s infrastructure
is experiencing exponential growth, up from 1
billion US dollars in 2001 to 17 billion US dollars in 2010
(including a 130-million-US-dollar special loan to Ghana)
with infrastructure projects ranging from construction of
power plants, highways, and railroads to airports. (Capital
Week)
25

China in Talks with Brazil over
Trade Barriers
China is in talks with Brazil on lifting trade
barriers that would allow the Latin American
country to sell it more processed agricultural
goods; Brazilian government officials
have told the Financial Times.
During the negotiations in Brasília last week with
Chen Deming, China’s commerce minister, Brazil’s
government gave Beijing a list of 10 processed goods
it wants to start exporting in quantity, such as frozen
chicken wings and soyabean oil.
“The relationship with China is so unbalanced,
not in terms of value but in terms of what we trade,”
one official close to the trade negotiations said. “The
Chinese acknowledged this and said they will make an
effort to change this.”
Iron ore, soyabeans and petroleum account for
about 80 per cent of Brazil’s exports to China, partly
because more heavily processed goods are restricted by
higher tariffs. Brazil claims tariffs on soyabean oil are
nine times higher than the charge on raw soyabeans.
Meanwhile, China mainly sends back cheap manufactured
components such as television and air conditioning
parts.
Economists have warned that if Brazil cannot
soon start exporting more processed goods, it is in
danger of falling victim to “Dutch disease”, whereby
commodity-driven currency appreciation crushes
local manufacturing.
Speaking to reporters last Monday, Mr Chen said
that China welcomed more diversified exports from
Brazil. “We hope that good Brazilian products can be
introduced into the Chinese market,” he said, adding
that it was ultimately up to the Chinese consumer to
decide.
Brazil also called on China to promote the sale
of Brazilian luxury shoes and jewellery in its domestic
market. “We cannot compete with China on prices;
that are not the point,” the Brazilian official said, adding
that the government believed it could challenge
countries such as Italy in China’s luxury shoe shops.
Brazil’s new president Dilma Rousseff, Brazil’s new
president, last month made one of her first overseas
trips to China in a bid to diversify trade.
As the Brazilian currency has soared almost 50
per cent against the dollar since the end of 2008, putting
pressure on local manufacturers. Brazil’s government
has also taken more measures to slow
various imports.
Brazil is looking at introducing
similar measures on other products, the government
official said, as the country tries to buy it time while it
evaluates the problems facing individual sectors.
Brasília has launched anti-dumping investigations
and imposed limits on imports of some Chinese goods
to protect domestic industry but officials will be wary
of imposing too many trade restrictions out of fear of
retaliation from China.
In neighbouring Argentina, new tariffs introduced
last year on cheap Chinese imports in order to protect
local industry were met by retaliatory action from Beijing,
which effectively banned imports of soybean products
from Argentina in response.
Probably no country has gained as much from the
rise of China as Brazil. Each country has what the other
lacks. China needs commodities to house and feed its
population; Brazil has them in abundance. Brazil needs
foreign savings to fund domestic investment; China has
a surplus. Extra bonus: their shared history has no colonial
baggage. As a result, a long distance relationship
has flowered. Over the past decade, bilateral trade has
increased 18-fold to more than US$50billion annually.
Every day, Brasília faces increasing protests from
manufacturers complaining that cheap Chinese-made
goods are “de-industrializing” the country. This pushes
Brazilian buttons, given the region’s long history of
commodity dependence. But trade numbers bear out
the concerns: over the past 10 years, the share of commodities
in total Brazilian exports has more than
doubled to 46 per cent, while manufactured goods have
slumped. Massive Chinese foreign exchange intervention,
which has deflected international capital flows
to other markets in the so-called “currency wars”, has
not helped. The real value of Brazil’s trade-weighted
currency has surged 24 per cent since 2007, punishing
local industry even more. Indeed, most of the country’s
carnival costumes are now made in China; so too much
of its processed steel. As a result, Brazil has begun to
re-evaluate its Chinese ties.
Trade retaliation is a tactical possibility. Indeed, of
the 144 anti-dumping investigations that Brazil launched
at the end of last year, 50 were against China. But this is
also a dangerous path. An alternative is to foster complementary
industries, as other successful commodity producers
have done. Norway, rich in oil, has an exportable
excellence in deep water engineering. Israel, once famous
for oranges, is now better known for the irrigation technology
it developed to grow them. Brazil’s comparative
advantage lies in agricultural sciences. (Financial Times)
26

When the Chinese came looking for
more soybeans here last year, they
inquired about buying land, lots of
it.
Officials in this farming area would not sell
the hundreds of thousands of acres needed. Undeterred,
the Chinese pursued a different strategy:
providing credit to farmers and potentially
tripling the soybeans grown here to feed chickens
and hogs back in China.
“They need the soy more than anyone,” said
Edimilson Santana, a farmer in the small town of
Uruaçu. “This could be a new beginning for farmers
here.”
The US$7 billion agreement signed last
month, to produce six million tons of soybeans
a year, is one of several struck in recent weeks as
China hurries to shore up its food security and
offset its growing reliance on crops from the
United States by pursuing vast tracts of Latin
America’s agricultural heartland.
Even as Brazil, Argentina and other nations
move to impose limits on farmland purchases by
foreigners, the Chinese are seeking to more directly
control production themselves, taking their
nation’s fervor for agricultural self-sufficiency
overseas.
While many welcome the investments, the
aggressive push comes as Brazilian officials have
begun questioning the “strategic partnership”
with China encouraged by former President Luiz
Inácio Lula da Silva. The Chinese have become
so important to Brazil’s economy that it cannot do
without them, and that is precisely what is making
Brazil increasingly uneasy.
China has become Brazil’s biggest trading
partner, buying ever increasing volumes of
soybeans and iron ore, while investing billions
in Brazil’s energy sector. The demand has helped
fuel an economic boom here that has lifted more
than 20 million Brazilians from extreme poverty
and brought economic stability to a country accustomed
to periodic crises.
Yet some experts say the partnership has
devolved into a classic neo-colonial relationship
in which China has the upper hand. Nearly 84
percent of Brazil’s exports to China last year were
raw materials, up from 68 percent in 2000. But
about 98 percent of China’s exports to Brazil are
manufactured products, including the latest, lowpriced
cars for Brazil’s emerging middle class, that
are beating down Brazil’s industrial sector.
While visiting China last month, Brazil’s
new president, Dilma Rousseff, emphasized the
need to sell higher-value products to China, and
she has edged closer to the United States. “It is
not by accident that there is a sort of effort to
revalue the relationship with the United States,”
said Paulo Sotero, director of the Brazil Institute
at the Woodrow Wilson International Center for
Scholars. “China exposes Brazil’s vulnerabilities
more than any other country in the world.”
A World Bank study last year said that
volatile food prices had brought a “rising tide” of
large-scale farmland purchases in developing nations,
and that China was among a small group of
countries making most of the purchases.
Foreigners own an estimated 11 percent of
productive land in Argentina, according to the
Argentine Agriculture Federation. In Brazil,
one government study estimated that foreigners
owned land equivalent to about 20 percent of São
Paulo State.
International investors have criticized the restrictions.
At least US$15 billion in farming and
forestry projects in Brazil have been suspended
since the government’s limits, according to Agroconsult,
a Brazilian agricultural consultancy.
Responding to the criticism, Brazil’s agriculture
minister said this month that Brazil might
start leasing farmland to foreigners, given the
barriers to ownership.
China itself does not allow private ownership
of farmland, and it cautioned local governments
against granting large-scale or long-term
leases to companies in a 2001 directive. China
also bans foreign companies from buying mines
and oil fields.
But as more of its people eat meat, China is
expected to increase its soybean imports, mostly
for animal feed, by more than 50 percent by 2020,
according to the United States Department of
Agriculture. Last month, Chongqing Grains
signed a US$2.5 billion agreement to produce
soybeans in the Brazilian state of Bahia. Last October,
a Chinese group agreed to develop about
500,000 acres of farmland in Río Negro Province
in Argentina.
In both cases, Chinese officials proposed
buying large tracts of land before local officials
steered them toward production agreements.
Brian Willott, an American farmer who
came to Brazil in 2003, said Chinese interest in
buying farms had not abated. “Everywhere you
go to look at a farm they say, ‘We are considering
selling to the Chinese,’ ” he said.
In Goiás State, nearly 70 percent of the soy
grown went to the Chinese last year, and the Chinese
are seeking to use about 20 million acres of
pastureland that has not been
But Tan Lin, a manager at the Chinese company
involved in Goiás, said he doubted Chinese
companies were ready to replace them. (New York
Times)
China’s Interest
in Farmland Makes Brazil Uneasy
27

TRADE
It Pays to Invest in Chile
By Li Zhen
Chile is the first country to establish cooperative
relations with China in South America,
and also the first one to support China’s accession
to the World Trade Organization. In
2005, Chile and China signed a free trade agreement.
After that, China has become Chile’s largest trading
partner, and Chile become China’s second largest
partner in South America.
At The Fifth Chinese Enterprises Outbound Investment
Forum, Chilean Ambassador Luis Schmidt
said that Chile was regarded as a very attractive Investment
destination for many countries because of its
political stability, social progress, good macroeconomic
performance. In 2010, Chile maintained a 5.2% economic
growth rate, one of the fastest growing economies
in Latin America.
Although Chile ranked third in Latin America as
to accepting foreign direct investment, but investment
from China has been kept low. According to Chilean
Foreign Investment Committee Executive Vice President
Matias Mori, foreign direct investment in Chile
mainly went to mining areas, services, and electricity,
gas and water with its main investor being Spain and
Canada. Foreign investment from Asia accounted
for only 0.2% of the total investment, and almost all
from Japan. Although China is Chile’s largest trading
partner in Latin America, and Chile is China’s second
largest trading partner. However, the strong trade relations
between the two countries have not converted to
investment growth. Matias Mori said that
in the process of rapid economic growth,
China’s huge demand for resources makes
Chinese enterprises to invest in Chile a wiser
choice.
The outbreak of international financial
crisis poses a serious challenge to macro
economy and financial systems of developed
countries. However, the good macroeconomic
situation and the financial system
have become an important factor to attract
foreign direct investment in Chile. Fredrico
Dietrich, Chief Representative of
Chile Bank in Beijing, said Chile has
good macro-economic policies,
good investment environment
and mechanism. Meanwhile,
Chile is a very
open economy, with its international trade accounting
for 6.4% of GDP. With more than 60 free trade agreements,
Chile is also taking the lead in the process of
economic globalization. In addition, Chile’s capital
market has developed very quickly, providing a good
platform for corporate finance. In the past 10 years,
the market value of the capital market in Chile has increased
by 10 times, which means investors can make
the most of capital market to conduct better investment.
To investors, Chile’s forestry has become one of
great investment value. Forests accounted for 22% of
the entire land area of Chile, a unique condition for
Chile’s wood, paper and furniture. Forest area in southern
Chile accounted for 31% of the entire Chile’s forest
out of good natural conditions. According to Jin Long,
Commercial Counselor of Chile Embassy, from the industry
point of view, the price of wood within the world
of forestry costs are growing, it pays to invest in Chile
to offset rising costs.
In addition, in order to attract foreign direct
investment, Chile introduced a specialized agency,
Chilean Economic Development Board, whose main
task is responsible for facilitating the investors, helping
publicize and promoting the investment environment
in Chile. Since the establishment after more than 70
years, Chile Economic Development Board has made
tremendous efforts in providing information, service
and technical support to investors, which proved to be
of great convenience to outbound investors.
28

INVESTMENT
29

Prices are so high. Do the high prices
start from production sites? Or do they
climb up during transportation process?
Cost List
of Logistics Industry
By Yuan Jin
On
th
April 23 the standard for container freight was announced
by Shanghai Municipal Development and Reform Commission
and four other ministries to abolish fuel surcharge and nighttime
operation charges set by container yards in shanghai and
reduce turn-over rate of containers to various extent at port areas.
Overstrained logistics businesses, faced with various cost, are experiencing
great difficulty keeping up an appearance, while meager profit is being
lost. Lately the author interviewed some people from the long-distance
transportation, shipment industry and container transportation consecutively
with an aim to find out the exact transportation cost and what the
logistics industry really looks like.
30

Cost of long distance trucking
Though skyrocketing oil price is the
most direct factor behind the high cost, other
expenses also take a large proportion of the
cost for load carriers.
The reporter randomly interviewed a
driver of long distance transportation in a
logistics park near Shibalidian on the Southeastern
4 th Ring Road in Beijing.
According to the driver, who is engaged
in transportation between Guangzhou and
Beijing, it takes nearly ten days for a round
trip. When asked about the expenses and
cost of each transportation, he told the reporter,
“A lot of money is required to pass
highway in every province from Guangzhou
to Beijing. Another major cost is fuel. I spend
about 13,000 or 14.000 yuan on fuel and toll
from Guangzhou to Beijing.”
“I can tell you the approximate number
I make each time, though profits change
every time. Take a deal for example. Customer
pays us 15,000 yuan. We spend about
7,000 yuan on fuel. Then 13,000 or 14,000
yuan will be spent on fuel and toll altogether,
which leaves us 1,000 or 2,000 yuan
to make.” The driver reckoned profits while
complaining to me about the high oil prices.
He said 400 yuan more would be spent on a
trip from Guangzhou to Beijing with price
rise of fuel this time, which is a lot to him.
As I know the cost of domestic long distance transportation mainly
includes: fuel surcharge, highway toll fees, parking fee, driver’s pay, vehicle’s
depreciation cost, cost of purchasing new vehicles etc. Besides,
there are other small expenses, such as loading fee and unloading fee.
All these expenses are included in cost. Besides a lump sum payment
by customers, remaining number is borne by carriers, which leaves
carriers little profits.
Cost of port transportation
As far as I know, there are many expense items in port transportation.
Normally carriers need to take these expenses into consideration
when reckoning cost.
Take Tianjin for example. The main
charges at port in clude: the charge for reports
on arrival is 200 to 400 yuan; service
charge ranges from 50 to 80 yuan; document
fee is 20 to 50 yuan; port seal (leak) charge
is 15 to 50 yuan; terminal handling charge
is 120 to 180 yuan. At container yards, 400
yuan will be charged for a twenty-feet equivalent
unit loaded at production site and 650
yuan for a forty-feet equivalent uni. If cargos
are not loaded on ship, container detention
charge, demurrage charges, and shut-out &
trans-ship, etc. will be charged.
Among the above expenses, charges on
arrival set by container yards are fixed. Transportation
cost is determined by distance. More
need to be taken into consideration to calculate
overall cost. Diesel fuel is the major cost of
single trip, which is under the influences of
every oil price rise. Highway toll fees and tolls
are the second biggest cost next to diesel fuel.
However, there are also some big invisible cost,
such as fines for over-high cubic container.
What’s more, there are potential risks
involved in the trucking business. Carriers
need to consider the loss for accidents, which
may cost ten to 20,000 yuan, or even hundreds
thousand yuan, another huge invisible cost. In
case of an accident, towing fee, appraisal fee
etc. will also be charged.
Another cost is road administration
charge and traffic police fines, which also affect
overall cost and profits a lot.
Cost for container gate-in
Liu Dou, a trucking boss in Tianjin
port, examined various cost to carry cargo
from Tianjin to Shijiazhuang.
According to the current prices to carry
cargo from Tianjin to Shijiazhuang, loading
a container costs about 3,900 yuan or 4,000
yuan (empty containers are first carried to
factories after being picked at port; then they
will be loaded and at last delivered back to
Tianjin port).
In the process, 2,000 yuan of oil cost
and highway toll, 650 yuan of container yard
fees, 200 yuan of fines, 200 yuan of drivers’
wages, 150 yuan of insurance premium, and
160 yuan of tax will be paid.
“All of these are direct cost. Different
trucks have different gasoline consumption.
The horsepower of my trucks is small and
the vehicles scarely run in the highway. The
company’s other cost also has to be covered.
In this way, 300 to 400 yuan is allowed to
each car, which makes less than 300 yuan of
31

net profits a day. The current market
prices are very clear.” Mr. Liu reckoned
his cost during the transportation and
admitted that profits of trucking businesses
are rather low.
“As for cost at port, the 650 yuan
just mentioned includes arrival report fee
of 400 yuan, service charge of 80 yuan;
port seal fee of 20 yuan etc. Different
container yards charge differently.”
Besides the above mentioned cost,
overall cost also includes the cost of
deducing or delaying order, operation,
building rent, phone fee, and administration
etc. although different carriers
have different cost on these items, they
are almost the same. In this way, carriers
make no more than 200 yuan for
each container. However, if there are
some accidents, cost will rise significantly.
Liu Dou, who was currently in
Tianjin, didn’t think the expense reduction
in Shanghai would be of much
help to the business. After all customers
will get the information immediately
and lower the payment to the carrier
accordingly. Customers only check fuel
expenses and container yard expenses
with carriers, but not others, such as
fines, insurance premium, cost for car
repairs etc. Then carriers’ profits are
further diminished.
Highly competitive shipping
industry
The shipping industry is under
high pressure from the severe competitions
between carriers.
Zhang Cheng, a ship carrier in
Dalian who has been engaged in the
business for many years told the reporter
about the status quo of highly
competitive shipping industry.
“Ocean freight business has its
own industrial characteristics. I think the
industry itself does not calculate the cost.
Instead cargo interests do so.”
Mr. Zhang’s remark was out
of consideration given to the highly
competitive industry. According to
him, prices in the whole industry go
with the market fluctuation. What is
snatched by businesses is steady supply
of goods. Only when one achieves
certain scale, can the business be
competitive, which requires a long
time engaged in the business with
stable customer resouces.
“The shipping businesses will not
stop as long as money loss is not great.
If we stop the business, we will suffer
the loss more.”
A ship with more than ten thousand
tons costs 40 to 50 million yuan at
most. Most investments on ships in the
industry are through loans, which requires
regular repayment. What’s more,
there are nearly 30 sailors on board
every day. To stabilized the crew, we
must pay them even if the business is
suspended, or they will be recruited by
other carriers. It will be hard to recruit
people. Besides, seaweed will grow on
the bottom of a ship if it stops for a long
time, resulting in increased resistance
to the ship sailing, which will not only
increase costs of oil, but also reduce the
speed of the ship.
Periods of fluctuations in the shipping
industry tend to be short. If a carrier
suspends business during recession,
he/she will soon meet recession again
when he/she restart the business in a
good time. Therefore, normally companies
will not reduce businesses during
recession without careful consideration,
which is decided by the industrial characteristics.
Businesses will be lost if
operation suspends. A long-term stable
customer is of vital importance to a
company’s development.
“The shipping market is rather
transparent. Price changes no more than
three yuan per ton. Every company follows
market instead of their own cost.
Cost has no say in market.” Zhang
Cheng thought the shipping industry
goes under the direction of market and
the cost couldn’t decicle the price decide
pricing.
Cost composition along the
logistics chain
Zhang Cheng game an example
to illustrate all the steps and cost
items in a complete transportation.
Take freight from Chaoyang City,
Liaoning Province to Guangzhou for
example. Cargo first will be transported
from Chaoyang to Jinzhou Port, where
cargo will containers will be gated
in and loaded on board once certain
amount accumulated. Then the containers
will be shipped to Guangzhou,
and then picked by companies to factories
or project sites.
Overall cost during the whole
process includes: first, trucking cost
from Chaoyang City to Jinzhou, chosen
from quotations of logistics companies,
which is quite fair; second, container
gate-in fees per ton, which is relatively
stable and regulated once a year; third,
shipment and transportation cost;
fourth, cost at Guangzhou Port and
truck fees to take cargo from the port
to factories.
Of all these cost, truck fees, as
well as shipping freight fees are floating
with a large proportion.
Of course, there are “sub-cost”
in each process. For example, in the
first step, trucking fees include truck
investment costs, drivers’ wages, cost
of oil, tolls, time cost, and taxes. Cost
at Jinzhou Port includes dock workers’
wages, crane investment, crane depreciation
costs, electricity fees, site hiring
costs, and the cost of shipment.
In the second step, shipping cost
include ship investment, sailors’ wages,
board wages, time cost, pie rage, fuel
cost, and taxes.
It will cost the same in Guangzhou
Port as in Jinzhou Port; and the same to
transport cargo from the port to factories
as trucking cost in the first step.
“Cost depends on cargo. For
example, the prices to carry cotton
and steel are different. Super-long and
super-wide goods will cost more to
transport.” Zhang Cheng told the reporter,
“I can’t tell you more about the
exact cost, because I have to consider
too many other things as well, such
as wages of my employees. Do I pay
them daily or monthly? Transportation
period varies, so pay depends on each
case.”
(Author: China Enterprise
News)
32

Vegetables Hard to Enter Cities
Because of Blocked Logistics
Vehicles
By Beijing News
What steps do goods have
to go through to arrive
in customers’ hands
after leaving factories?
How does their cost increase step after
step? High transportation cost have
been long complained about by people,
be it the exorbitant tolls in He’nan
province, or the super length high way
fees in Guangdong province. Recently,
vegetable prices reduced quite low in
production sites. The purchase prices of
some vegetables in field are around five
to six fen. However, their prices at food
market in towns and supermarkets remain
more than two yuan. Why is the
price so high?
Market prices of vegetables are as
much as 20 times of prices in production
sites.
According to some research by
Beijing Logistics Association, it’s very
difficult to transport vegetables into
towns; carried from wholesale market
to supermarkets, their prices quadruple.
Currently squashes sell at one
jiao per kilogram at production sites in
Shandong. Reporters find that the same
kind of squashes sells at two yuan per
kilogram in several community green
grocer’s shops in Beijing, rising by 19
times.
How do vegetable prices grow
up so high? Transported from Shanxi
to Xinfadi, an agricultural products
wholesale market outside the Fourth
Ring of Beijing, the wholesale price of
squashes, the original price of which
is one jiao per kilogram at production
site, rises to five jiao per kilogram, with
tucking fees and Xinfadi market cost
added. A green grocer told reporters
that they can make one or two hundred
yuan per truck; sometimes they even
run the business with a loss.
Although the Shandong greengrocer
knows that squashes sell at two
yuan per kilogram in town, he can
only do business at Xinfadi, because
his truck was not allowed to drive into
town.
As in a relay race, some other
greengrocers transported vegetables
from Xinfadi outside the Southern
Fourth Ring to Yuegezhuang Vegetable
Market inside Western Fourth Ring.
The price now increases 30 per cent to
seven jiao per kilogram, with truckage
and booth rent added, although the
distance between the two markets is
not long.
Ms. Yang, who was selling vegetables
in the community, said it is
really difficult to transport vegetables
into town; every time she was so apprehensive
and had to be extremely
cautious; there are so many steps to go
through that vegetables are damaged a
lot along the way. Besides grocers also
have to calculate booth rent, cleaning
fees, water & electricity fees etc, which
cost them more than 2,000 yuan, to set
vegetable prices.
An investigation by Beijing Logistics
Association shows that the trucking
cost to transport vegetables from
wholesale market to retail market, the
last kilometer, is at least 2.5 times of he
trucking cost to transport vegetables
from Shouguang Shandong province
to Beijing. The Vice Secretary General
Xiao Hesen told reporters that wholesale
prices are two, even three times of
purchasing prices at production sites;
however, prices skyrocket during the
process from wholesale market to supermarkets.
Take cabbage for example.
The purchasing price at production sites
is 0.8 jiao per kilogram; price grows to
three jiao at Xinfadi Wholesale Market
and further to 1.6 yuan kilogram in
supermarkets. That is to say price quadruples
during the process from wholesale
to supermarket and the final retail
price is as much as 20 times of that in
production sites.
Driving is hard, so is parking. Logistics
vehicles all around the city.
Logistics companies are troubled
with the problems of blocked roads,
prohibited trucks and rare parking
space during the last kilometer to get
into the city.
Vegetable prices rise a lot because
of the current challenges facing logistics.
What about the transportation of
other commodities?
At 8:00 am in a warehouse on
the Eastern Fifth Ring Road, delivery
personnel were assorting and loading
clothes, shoes, and socks sent from all
parts of the country, which would be
33

then transported to several markets in
downtown areas of Beijing. Mr. Kou, a
truck driver, was told to deliver goods
to Zhongguancun.
According to rules set by Beijing
government, a truck needs freight pass
to enter the Fourth Ring Road, which
Mr. Kou didn’t get for his truck. Li
Chun, another truck driver, was to
deliver goods to six shopping malls in
Wangfujing. Although the truck of
Li Chun has freight pass, it cannot be
driven into the Fourth Ring Road during
two time periods: 7:00-9:00 am and
4:00-8:00 pm.
Mr. Kou chose to drive around the
Fifth Ring Road. He told the reporter, it
would be nearer to go along the Fourth
Ring Road, but he was afraid of traffic
police. The fines he paid one year would
be as much as more than 1,000 yuan.
At 9:00 am, cars, large or small,
delivering goods into the city were
running on the roads. Li Chun was
blocked in Wangfujing business area.
He said the roads are most blocked on
Mondays, Wednesdays and Fridays.
Often the congestion would last for two
hours.
Around 10:00 am Mr. Kou and
Li Chun both arrived at their respective
destinations to unload. However,
they run into the same problem:
there was no place to park the car.
Although there was an underground
parking lot, however there was also a
limitation on the height of the car: no
more than 1.8 meters. There’s no way
to drive a two-meter or three-meter
height truck in. In case of traffic police
fines, Li Chun dared not walk
away from the car.
By 1:00 pm, three hours to the
limitation time, Mr. Kou still had six
markets to go to, while Li Chun had
four. Both started to worry that they
couldn’t finish the fast. If so they have
to wait in the city till 8:00 to go back.
In this way, parking fee only would cost
about 100 yuan. If they deliver for six
markets one day, they will lose money
instead of making any after paying 100
yuan for fuel expenses.
Yun Mian, the Director of Operations
of Delide Logistics Ltd., told
reporters that Wangfujing and Zhongguancun
where Li Chun and Mr. Kou
went are two shopping districts with
large freight volumes and most limitations
on trucks. Logistics companies in
Beijing have long been troubled by the
problem of how to deliver goods into
these areas. Logistics companies are
troubled with the problems of blocked
roads, prohibited trucks and rare parking
space during the last kilometer to
get into the city.
Some data released by China
Federation of Logistics & Purchasing
(CFLP) shows that expenses on logistics
took a proportion of 18 per cent
or so of the Domestic Gross Product
(GDP), twice that of developed countries.
High logistics cost is a major cause
of the exorbitant prices of goods. Trucks
are hard to drive because of traffic jam
and limitation on the vehicles; besides,
it’s difficult to find parking places for
trucks. Roads are blocked by logistics
vehicles, which pushes up commodity
prices at last. Sources say that 90 per
cent of the time for a commodity to
reach a customer is spent on storage,
transportation, packaging, distribution
etc, resulted from low efficient logistics
businesses and resulting in high commodity
prices.
Experts
Fu Zhongfu, Vice President of China
Federation of Logistics
& Purchasing (CFLP):
we should change truck standards.
Efforts could be made in the following aspects to
solve the persistent problems in the logistics industry.
First, technologic requirements for access to the industry
should be raised. Currently there are 7.8 billion road t
ransportation companies in China, with more than 110
billion trucks or about ten trucks each company. The market
share of the top 20 companies is less than 2 per cent.
However, the top five road transportation companies in
the United States are 60 per cent. Therefore we must raise
technologic standards to get rid of the current disorderly
competition.
Second, the current truck standards need to be modified
and improved. Currently many exceeding speed or
overloading is defined by standards that give too much
consideration to safety. We need to modify and improve the
standards by balancing safety and promoting economic efficiency.
For example, there are many cars with a length of
20 meters, 22 meters, or 25 meters, which do not jeopardize
safety. We can draw on these experiences and enlarge the
standard sizes according to our own situation; we can also
smooth the operation of logistics companies by reducing
the scope of exceeding speed and overloading.
Zhang Hong, a commentator of the CCTV
show “Observation Today”:
companies abiding by the law should be
supported.
From a macro point of view, to guarantee the everyday
life of residents, daily necessities must be transported to
34

Logistics:Price Rises Incurred by
By Lai Zhihui
High Oil Price
“W
hen the oil price
grows by 100%,
the logistic industry
will see a price
growth of 40%, while the logistics industry
a price rise of 35%, which means
every price increase of 5% in the oil
price will bring along that of 2% in this
industry.” said Liu Zongsheng, General
Manager of Itochu Logistics Co., Ltd.,
on the seminar “Focusing on the economic
consequences of raising oil price,
interest rate and deposit reserve ratio”,
which was held recently.
What he said is on the mind of
all others in this industry. With the oil
price rising continually, the originally
severely competitive industry is suffering
from the costs growth.
According to a survey of key logistics
enterprises in this country, the
top 50 pulled in a total of RMB 450.6
billion in 2009; among them, the in-
come of the largest enterprise exceeded
a hundred billion yuan that year.
The latest data released by China
Federation of Logistics and Purchasing
show that, in 2010, the volume of
China’s social logistics reached RMB
125 trillion, and increased by RMB 2.7
trillion, with a yearly growth of 21%
and 16.7% respectively.
However, extremely high costs have
always been the biggest obstacle to the
development of the logistics industry. In
2010, the income from logistics accounted
for about 18% of China’s gross domestic
product, twice the proportion in developed
countries. The consumption of oil
constitutes the bulk of the costs in this industry.
According to general estimation,
this part has taken up more than 40% of
all costs. But with the oil price keeping
on growing, in some enterprises, the oil
consumption has reached almost 50% of
the enterprises’ costs.
Under this pressure, several companies
have begun to raise their prices to
shift this part of costs to their customers.
As early as last October and December
when the price of refined oil had
been raised twice, private-owned logistics
companies such as Yuantong and Shentong
all increased their prices. According
to the staff from Deppon Logistics, the
price of diesel has risen by 3,410 yuan per
tonne since June 2009, thus “to increase
the price is a forced choice”.
This staff told the reporter that
Deppon Logistics had raised its trans-
downtown markets. The problem now is that: are there
suitable cars to use? Do we make the congestion more sever
by prohibiting trucks and employing eight or nine minibuses
instead?
On the one hand we should companies abiding by the
law survive and tell them how to make profits by legal methods.
On the other, we should eradicate companies defying
the law and tell them the ultimate aims of fines, which is to
get rid of factors of dangerous. Don’t assume that one can
continue to run the business with dangerous factors as long as
fines are paid.
Professor Zhang Xiaodong from Beijing
Jiaotong University Zhang Xiaodong:
prohibiting trucks does not reduce traffic jam.
Cargo volume is 290 million tons a year in Beijing, with
80% of goods entering the city. Therefore there’s a large
need for cargo freight capacity. However, currently there
are not enough passes to the city granted to drivers.
Carriers must substitute one good with another or carry
passengers and cargo at the same time. Without these
trucks, 70 to 80 percent of the supermarkets in Beijing
will have to close down. Even the smallest truck can
carry 12 cubic meters of cargo, as much as what can be
carried by four Jinbei cars. In reality there are more small
vans running on the road after trucks are prohibited,
which aggravates situation instead of reducing traffic
jam. What’s more, a truck takes far less road sources and
emits far less tail gas than four Jinbei cars. The current
traffic jam in the city actually increases transportation
cost of goods, including time cost, financial costs etc.
This is the key reason prices skyrocket during the last
kilometer.
35

portation fee, growing by 6% at most.
For example, the freight fee has increased
by 0.08 yuan per kilogram for
goods being delivered from Guangzhou
to major cities. The company has declared
in A Letter to Customers posted
on its official website that, “As the CPI
and the company’s comprehensive costs
on employees have been on the rise,
the overall costs to run the company is
growing correspondingly. Considering
this, the company will make proper adjustment
to the prices of transportation
by truck from February 25.”
It is known that for the time being
almost all express parcels within 1,500
kilometers are sent by highway. The
increase of transportation fee for highway
directly results in the rising costs
in delivering parcels. In fact, as early as
before Spring Festival, Shentong Express
and other companies had already
untaken another round of price rises.
The nationwide labor force shortage
after the festival also made it difficult
for these labor-intensive enterprises to
hire employees. Thus, the income for
deliverers has grown by nearly 20%.
Under this circumstance, the oil price
rise undoubtedly causes more pressure. A
new round of price rises is brewing.
The reporter from has learned from
the website of Shunfeng Express, a private-owned
parcel service company, that
since March 7 this year, the company
will try to collect an extra service fee
for collecting parcels at the customer’s
residence. If parcels are being sent from
somewhere within the allotted areas
where the company decides to collect
an extra service fee, and the customer is
not sending parcels in bulk, then parcels
going to the urban area, the suburb or
within the province should be charged 3
yuan for every parcel as residence service
fee, and is to be paid be the sending customer
alone.
Xu Yong, Chief Advisor of Express
Consultation, thinks that under the
influence of inflation, rising labor costs
and labor force shortage, the parcel service
will see its price increase slightly this
year, and some express companies will
increase the service price by 10% to 20%.
However, the pressure of rising
costs will speed up the launch of a detailed
Adjustment and Rejuvenation
Program for Logistics Industry. As one
of the rejuvenation plans for ten industries,
Adjustment and Rejuvenation
Project, released in March 2009, has
never seen its detailed provisions come
out to prop up the logistics industry.
The reporter with Investor Journal
has learned from the 2011 China Logistics
Development Report held not long
before, after a survey lasting more than
one year by the Logistics Survey Team,
China Federation of Logistics and Purchasing
and several other departments
have reported the results of the survey to
the State Council. The detailed provisions
which are to be announced soon
will hopefully provide a flat tax rate,
reducing the business tax in all chains of
the logistics operation.
(Author: Investor Journal)
Highway Companies
Deny Windfall
Profits
By Securities Daily
There is no denying that the
real estate industry sees huge
profits, but it is hard to imagine
that the gross profits of
highway companies have reached a very
high level, becoming another typical
industry of huge profits. The sky-high
36
road toll is attracting more and more
public concerns about the seemingly
low-profile and stable industry.
Based on the WIND statistics, reporters
from the Securities Daily found
that 19 highway companies listed in
the A-share had claimed a more than
35% gross profit in their annual reports,
with 15 companies reaching more
than 50%. Meanwhile, only 21 out of
the 124 listed property companies had
achieved a more than 50% gross profit.
Top of the rank is Chongqing Road
and Bridge Company, reaching 88.26%
and also heading the chart in the year
2009. Following down the list are Fujian
Highway and Anhui Expressway,
reaching 72.73% and 70.61% in their
gross profits respectively.
Also, the highway companies
have received high level of net profits.
The highway companies share different
views about the huge profits earned in
the highway industry, but one thing in
common is that they all deny the windfall
profits.
Anhui Expressway:
Toll rising due to inflation
The resource shows that Anhui
Expressway (600012. SH) was listed
in 2003 and has six highways charging
fees in Anhui Province. Charging
the highest annual fees is the Hen-

ing Highway, with its 2010 revenues
amounting to 0.85 billion yuan, and
ranking the second it the Gaojie Highway,
with its 2010 revenues reaching
0.53 billion yuan. Yesterday journalists
of Securities Daily interviewed with an
insider from Anhui Expressway, who
said that “the current charge period of
highway is less than 30 years, and the
high gross profits of the company is
due to the low costs. For example, the
Hening Highway has been built before
2000, whose costs are much lower than
the current highway projects. Some
coastal regions charge higher tolls, like
some highway companies in Guangdong
Province.”
Just in November of 2010, the
Anhui Expressway raised the standards
of toll.
The company says it will follow
the notifications issued by the
Transportation Department and the
Price Department of Anhui Province
to charge new tolls from November
10, 2010 in its four highways: Hening
Highway, Gaojiu Highway, Xuanguang
Highway and Lianhuo Highway
(Anhui part). The toll for passenger
coaches will rise by 0.1 yuan/km, a
10% percent rise; and the toll for carriage
trucks rose by 0.01 yuan/t•km, a
15% rise.
The adjustment of charges will
raise the annual revenue of the company
by 13% and net profits by 33%.
In addition, the company has increased
punishments on over-loading
problems. Analytical institutions say
that although there is no data about
the overloaded vehicles, the impact of
this new policy is hard to estimate. But
it could be believed that profits due to
this round of toll rise will go beyond
our expectations. After the new standard
implemented on November 10,
the revenue of 2010 will rise by 2% and
the profits will go up by 4.5%, and the
figures for the year 2011 are 11% and
26% respectively.
“The toll should be raised at least
by the provincial Price Bureau.” Insider
from Anhui Expressway told reporters.
Then the report asked: “On what
grounds could the Price Bureau raise
the toll? Is it due to the demands by the
highway companies?”
The insider answered: “These
companies must communicate with related
departments of the government.”
As for the trigger of this toll rise,
the insider said: “Because of the inflation.”
The reporter asked: “Now everybody
is pointing his/her fingers
toward the highway industry, saying
that the overcharge has led to the rise
of commodity price, and the heating
of inflation. Now you think it is because
of the inflation that raising price
is reasonable, has it become a vicious
circle?” For this, the insider said that:
“There must be other reasons than the
inflation.”
Chongqing Road and Bridge
Company:
Fee slump leads to deficits
In recent years, the fact that the
estimated revenue of Guangzhou-
Shenzhen Highway has surpassed 30
billion yuan has drawn wide criticism;
since the figure is double that of the
investments. As for the rumors about
reduction of the highway toll, Yang
Hai, board director of the Guangzhou-
Shenzhen highway said to the media in
the conference that the probability for
sudden changes of highway charging
policy is very low. “Construction with
debts and repayment through charging
fees” will continue, and this policy will
promote the developments of highway
and improve the transportation. He believes
that the government will reconsider
the prospect of highway development
and the future policies would not
impose heavy impacts on the related
listed companies, since many highway
projects are under way.
Chongqing Road and Bridge
Company, which ranks first in its gross
profits, shared the similar views with
the board director of Guangzhou-
Shenzhen Highway.
An insider from Chongqing Road
and Bridge Company told reporters that:
“It is hard to deny that the company
gross profits are high, but 90% might be
over-exaggerating, because the calculation
method is not right. People who understand
the company’s conditions will
know that the company owns three lowcost
old bridges, and the company hasn’t
raised the bridge toll for many years,
because all the charges have been written
into contracts with the government
and the pricing results from reasonable
calculations. It is more appropriate to
say that the number of vehicle population
has increased, which is higher than
the expected standard, but the increased
costs of road and bridge constructions
might neutralize the profits from rising
vehicle flows. Now those who think the
highway tolls too high are logistics and
transportation companies, who would
benefit much from the falling tolls,
while are susceptible to the rise of tolls.
Although the highway toll has been kept
stable for years, they could not bear it
when the oil price rose from 3 yuan to 8
yuan per gallon.
Then will there be space for reducing
the tolls since the gross profits are
claimed to be high? The insider from
Chongqing Road and Bridge Company
points out that: “Th e company will suffer
loss if the toll standard is reduced.”
One analyst told reports that: Th e
highway industry has shown many
problems, such as short intervals between
toll station and different toll
standards among provinces. But it is inappropriate
to compare the gross profits
of the highway industry with the property
companies. We should compare
the rate of return on average equity.
But even for the rate of return on
average equity, reports conclude after
researching the WIND data that the
highway companies could match some
of the property companies.
It is evitable that the disputes
about whether the highway industry is
earning huge profits will continue, but
it is also hard to deny that it is time
to make a change since the high tolls
have pushed up the social transaction
costs.
37

Heavy Burdens
on Logistics Enterprises from
Repeated Taxation
By Xinmin Evening News
Repeated taxation is
the camel’s last straw
on the low-profit
logistics industry.
To hand in taxes according to
laws is a quite natural thing,
but some in charge of logistics
enterprises are thinking that
several items are taxed unreasonably.
Taxes far higher than profits
The company charges 402 yuan
to deliver four lamps worth 740 yuan
each from the Chengshi Zhixing Logistics
Center in Guangzhou. In this
case, the company can earn 12 yuan
but has to turn in 39 yuan for taxes,
says Shen Huawei, the accountant of
the company.
The president of the company
Huang Aijuan says there are four categories
of tax they turn in: business
tax takes up 12 yuan, urban construction
tax 8.4 yuan, education surtax
3.6 yuan, and enterprise income tax
10 yuan which is 10% of the pre-tax
profit of the company. But the reporter
notices here all the taxes put together
should be 34 yuan, while the company
really turns in 39 yuan.
That 34 yuan turns into 39 yuan
results from repeated taxation. The
goods travel 2,200 kilometers from
Guangzhou to Laiwu, and the company
has been taxed for the 402 yuan,
the transportation charge. But after
the goods enter Shandong Province,
they have to be delivered to their destination
by the company’s subsidiaries,
which have to turn in taxes to their
respective local governments for the
transportation of the goods as independent
legal persons.
Huang Aijuan tells the reporter
that a logistics company usually has a
number of subsidiaries and divisions
all over the country. Generally, goods
have to be transferred to many subsidiaries
before they reach their destination,
but every transfer is taxed.
Judging from a single delivery, the
extra 5 yuan in this single case seems
meager, but the company has more
than 200 branches nationwide, with
thousands of routes in operation. As
a result, it takes the company nearly
a million yuan to cover the repeated
taxation. The extra costs at least increase
the transportation fee by 10%,
with the consumers being the real
victims.
Secretary of Guangzhou Logistics
Association Zhang Qiang tells
the reporter that for the time being,
38

the four tax category—turnover tax,
income tax, property tax and action
tax—constitute China’s current taxation
mechanism. In every category,
dozens of taxes are concerned with the
logistics industry. Repeated taxation
mainly happens in outsourcing. The
average gross profit rate for this industry
has slumped from 30% in 2002 to
the current less than 10%, with the
figure for enterprises providing storage
being only 3% to 5%, for those
engaged in transportation, only 2%
to 3%, and for truck transportation,
freight agency and general logistics
service, about 2% on average. Repeated
taxation is the camel’s last straw on
the low-profit logistics industry.
This same happens in the storage.
Li Jianming rents a warehouse by
240,000 yuan and leases to someone
else at 600,000 yuan. But he has to
turn in 85,000 yuan monthly, of which
40,000 yuan is the extra incurred by
repeated taxation.
Experts hold that all these have
happened because in our country
there is still not a specific and precise
positioning of the logistics industry.
Related taxes are miscellaneous and
in disorder. Repeated taxation happens
every where. This places the
combined transportation under great
pressure.
When will tax reform have an
ice-breaking?
Gui Shouping, a standing member
of China Society of Logistics,
mentioned in his research that, the
transportation combining waterway
and road, highway and railway has
been the most infested with repeated
taxation. Gui said, “In this respect, we
should coordinate the tax departments
in different regions, levy taxes by sections
with only a single tax bill, and
make it clear how much tax should be
levied for every section.” He explained
that the current online and integrated
operation is the basic pattern for logistics
enterprises. But according to the
current taxation policies, every outsourcing
is taxed and filed a tax bill.
The more specific the labor division is,
the more transactions are conducted,
and the more tax will be levied.
Sun Jianbo, Vice President of
Institute of Finance and Tax Laws
under Beijing Law Society, suggests,
“To thoroughly solve the problem of
repeated taxation during the levy of
business tax, the best way is to incorporate
it into the value-added tax.
In this way, the sub-categories in the
business tax will be offset by similar
items in the value-added tax. Naturally,
taxes will not be collected repeatedly.
” He explained that while giving
priority to the consumption VAT, they
gradually turn the business tax into
VAT. When both taxes are levied,
tax rate should be made the same for
all trades, the preferential treatment
in VAT should be granted more cautiously,
and the business tax should
apply the taxation principle for VAT,
with differences being taxed, so that
they can eliminate repeated taxation.
This idea echoes with the proposal
of He Dengcai, Vice Director of
China Society of Logistics. He said,
“We have also reported to the National
Development and Reform Commission,
the State Administration of
Taxation and the Ministry of Finance.
Generally speaking, the problem of repeated
taxation can be solved by turning
the business tax into the valueadded
tax.”
39

ECONOMY
Beijing’s Convention
and Exhibition Industry
Maintains Good Momentum
By Xiong Jiuling
In recent years, Beijing’s convention
and exhibition industry has
maintained a good development
momentum with expanding scale
and improving facilities, becoming an
inseparable part of the city’s modern
service sector. The development of the
convention and exhibition industry
has played an active role in perfecting
the capital’s functions, optimizing the
industrial structure and enhancing the
city’s radiation capabilities.
First, improving hardware facilities
lend greater support to convention
and exhibition industry. Besides reconstruction
and expansion of the existing
convention-exhibition facilities, Beijing
has also constructed a series of new
convention-exhibition facilities. Part of
the Olympic venues used for conven-
40
tion-exhibition purposes has especially
enhanced the bearing capacity of Beijing’s
convention-exhibition facilities.
By late 2009, Beijing is equipped with
5,718 conference rooms, up 56.0%
over 2005, including 179 big ones with
over 500 seats, up 88.4% over 2005.
The available area of theses conference
rooms amounts to 831,000 square meters,
210,000 square meters more than
that of 2005, or up 33.8%. The operation
of China International Exhibition
Center (new venue) and China National
Convention Center together with the
construction of a large-scale exhibition
hall in Jiuhua Spa & Resort have
partly alleviated the shortage of largescale
exhibition facilities in Beijing. By
late 2009, the total area of professional
exhibition venues in Beijing stood at
569,000 square meters,
including 354,000
square meters for available
exhibition halls,
up 73.5% or 150,000
square meters more
than that of 2005.
Second, Beijing
becomes more internationally
influential
as an exhibition city.
In recent years, the
number of international
conventions and
exhibitions hosted in
Beijing is on the rise.
In 2009, by hosting 224,000 conventions,
an increase of 25.3% compared
with that of 2005, Beijing reaped revenue
of RMB 7.25 billion, up 115.5%
over the year 2005. The international
financial crisis has forced many companies
to cancel self-run exhibitions.
In 2009, 1,216 exhibitions were held in
Beijing, down 14.4% over 2005 yet with
expanding scales. The revenue from exhibitions
reached RMB 5.19 billion in
2009, up 129.9% compared with that of
four years ago.
Rapidly developing economy and
consummating convention venues have
poured into Beijing increasing number
of conventions and earned it the reputation
of “convention capital”. As more
and more conventions are hosted, the
number of people attending the conventions
also jumps sharply to 16.153
million in 2009, which suggests that
every conference room in Beijing accommodated
39.2 conferences throughout
the year. Enjoying the superiority of
being China’s capital, the international
metropolis serves as the venue for many
important conferences at home and
abroad. Even at the time when the
global economy was on the decline due
to the financial crisis, Beijing still witnessed
a drastic rise in the number of
conventions.
Statistics from the International
Congress and Convention Association
indicate that among the global cities

hosting international conferences in
2009, Beijing moved up to No. 10 with
greater influence in the international
platform. Beijing has thus become a
genuine “convention capital” both at
home and abroad.
Third, industrial clustering and
rational spatial layout make the convention-exhibition
industry more competitive.
Beijing’s convention and exhibition
industry keeps developing and shows a
trend for industrial clustering. In 2009,
with professional exhibition venues
accounting for 50% of the city’s total,
Chaoyang District hosted 70.7% exhibitions
of the city’s total. Chaoyang,
Haidian, Dongcheng and Xicheng are
the four relatively concentrated districts
in Beijing for hosting conventions. In
2009, hotels and restaurants in these
four districts took up a proportion of
54.2% of the city’s total, and conferences
hosted 54.7%. The exhibition venues,
hotels and restaurants had stimulated
the development of the surrounding
convention and exhibition service enterprises,
which accounted for 80.9%
of the city’s total and generated 88.4%
revenue of the city’s total.
The north-central part of Beijing
including Chaoyang, Haidian,
Dongcheng and Xicheng has now become
a heartland for conventions and
exhibitions. Over the years, industrial
clusters have taken shape, which not
only facilitates resource sharing, but also
exerts a pull effect on the development
of related industries. The new venue of
China International Exhibition Center
is situated in the airport area of Shunyi
District, laying a solid foundation for
Shunyi to develop cultural and creative
industries featuring the convention and
exhibition industry.
Fourth, convention and exhibition
brands become more mature and
more influential. Through cultivation
and development, Beijing has built
more professional and more influential
convention and exhibition brands both
at home and abroad. Among the largescale
international professional exhibitions,
exhibitions on cooling, machine
tool, textile, automobile, printing, metallurgy
and communications remain
world-leading. An array of brand exhibitions
including Beijing International
Automobile Exhibition, China International
Building Decorations & Building
Materials Expo, China International
Sports Goods Show, China Int’l
Clothing & Accessories Fair and
China International Machine
Tool Show are held in the new
China International Exhibition
Center. For the largescale
international conventions
and exhibitions, such as
China Beijing International
Hi-tech Expo, China (Shenzhen)
International Cultural
Industries Fair and Beijing-
Hong Kong Economic Cooperation
Symposium, the government
sticks to a connotative development
path with prominent brand effect.
Opportunities for Beijing’s
convention and exhibition
industry
Over the upcoming five years,
Beijing will usher in a critical period for
scientific development and a new phase
defined by adjusting the open competition
pattern, transforming economic
development mode, perfecting urban
layout and morphology, accelerating
society transformation and enhancing
competitiveness. The convention and
exhibition industry will embrace both
opportunities and challenges, but the
former outweighs the latter. In the next
five years, Beijing’s convention and
exhibition industry will embrace four
golden opportunities for development:
First, after a successful Olympics
and New China’s 60 anniversary
celebration, global resources intend to
concentrate in China and Beijing due
to Beijing’s rising international influence
and unprecedented attractiveness.
As an important destination where
international high-end resources are
likely to shift, Beijing enjoys more opportunities
and becomes able to accommodate
headquarters of international
organizations, regional headquarters,
as well as international conventions and
exhibitions, which provides valuable
historic opportunities for multifaceted
and multi-layer cooperation in the convention
and exhibition industry.
Second, the global financial crisis
makes the governments and regions
across the world desire for closer economic
cooperation. Expanding international
cooperation provides precious
opportunities for the convention and
exhibition industry to have an international
presence. Deepening cooperation
among Beijing-Tianjin-Hebei regions
serves as a good start for Beijing to extend
its planning on the convention and
exhibition industry to a wider range.
Third, the 12th five-year plan period
is critical for Beijing to turn itself
into a world city and to earnestly implement
the “People’s Beijing, High-Tech
Beijing and Green Beijing” strategy,
which will bring about golden opportunities
to the city’s convention and exhibition
industry. Based on the scientific
outlook on development and its functions
as the capital, Beijing will spare
no efforts to build itself into a world
harmonious and livable city defined by
advanced socialist culture with Chinese
characteristics, attracting international
activities, world-class enterprises’ headquarters
and high-caliber talents. This
will embody all the requirements of the
“People’s Beijing, High-Tech Beijing
and Green Beijing” strategy and provide
valuable opportunities for making
Beijing’s convention and exhibition industry
stronger.
Fourth, Beijing’s development
strategies during the 12th five-year
plan period to establish an innovative
cooperation platform, accelerate transferring
innovation achievements, cultivate
high-end new industrial zones and
advance upgrading cultural and creative
41

ECONOMY
industries will generate valuable opportunities
for the convention and exhibition
industry to shift to a connotative
development path.
Prospects of Beijing’s
convention and exhibition
industry
During the 12th five-year plan
period, with larger quantity and scale,
better overall performance and improving
environment, Beijing’s convention
and exhibition industry will consolidate
its position as an emerging industry and
a new economic growth point.
First, to guide the convention and
exhibition industry with planning. Under
the guidance of the Development
Program, Beijing will rationally plan
the quantity and layout of the venues,
properly enlarge the convention and
exhibition space, and achieve comprehensive
utilization of the venues by
expanding their functions; preferential
policies and publicity campaign will
optimize the environment and enhance
the comprehensive competitiveness of
the convention and exhibition industry;
energetic cultivation of market entities
will enhance the competitiveness of
the convention and exhibition entities;
introduction of more high-caliber talents
and a sound system for cultivating
professional convention and exhibition
talents will help to build a professional
team required by the convention and
exhibition industry.
Second, to enhance the competitiveness
of the convention and exhibition
industry with preferential policies.
Learning from the experience of
Germany, Japan and Hong Kong and
in accordance with the actual needs for
transforming economic development
mode and for industrial development,
Beijing will formulate a full range of
clear industry-promoting policies and
preferential policies on financing, bidding
for hosting activity, project publicity,
policy-related subsidies for brand
convention and exhibition cultivation
and preferential taxation in a bid to cultivate
and build convention and exhibition
brands and to encourage bidding
for hosting and introduction of international
convention and exhibitions.
With lower business operating costs
and better environment for convention
and exhibition, Beijing will activate and
prosper its convention and exhibition
market.
Third, to stimulate the development
of the convention and exhibition
industry with brand building. During
the 12th five-year plan period, Beijing’s
convention and exhibition industry will
step onto a connotative development
path with equal importance attached to
both quantity and quality. Beijing’s convention
and exhibition resources will
be integrated to form a scientific and
sustainable pattern for brand building.
The key exhibitions with great potential
will be cultivated for better quality and
greater effectiveness. There will emerge
in Beijing a batch of convention and exhibition
brands delivering the capital’s
image and conforming to the transformation
of economic development
mode and the industrial development
orientation. More and more important
international brand conventions and exhibitions
will be hosted and introduced,
which will lend a forceful guidance to
and exert a greater impact on the whole
industry.
Fourth, to boost the development
of the convention and exhibition industry
with innovative services. Based on
the features of the convention and exhibition
industry, Beijing will upgrade in
an all-round manner the public service
level of the convention and exhibition
industry and perfect the public service
system integrating legal construction,
policy support, environmental improvement
and market cultivation. The
capital will provide better hardware facilities
in the convention and exhibition
venues, improve the urban supporting
service functions, and attach great importance
to the soft environment of the
convention and exhibition industry by
providing efficient and quality services
in terms of security, transportation,
customs, commercial inspection and
communications. With a sound management
system and the establishment
of a coordination mechanism, Beijing
will strengthen communications with
authorities concerned under the central
government, nationwide trade associations
and relevant international
organizations to better coordinate the
development of the convention and exhibition
industry. By bringing the role
of the trade associations into full play
for greater self-discipline in the industry
and by innovating the communication
mechanism between the government
and enterprises for better reflection of
enterprises’ appeals, Beijing will push
forward the sound development of the
convention and exhibition industry
with an equal, open and just market
environment and order.
Fifth, to upgrade the influence
of the convention and exhibition industry
with international publicity.
Learning from other cities across the
world in developing the convention
and exhibition industry and based on
Beijing’s industrial restructuring and
key industry development orientation,
we will timely initiate international
publicity programs for the convention
and exhibition industry to explore international
marketing channels. One
theme will be chosen for the annual
multi-channel publicity of Beijing’s
convention and exhibition industry in
different regions or countries. Thus,
relevant international convention and
exhibition organizations and agencies
will be attracted to cooperate with the
city and more international merchants
and overseas professionals will attend
the conventions; and policies related
with introducing international conventions
and exhibitions will be unveiled
to promote international exchanges and
cooperation for Beijing’s convention
and exhibition industry. Meanwhile, by
building world-renowned self-created
brands in the convention and exhibition
domain, Beijing will bolster its image
and international influence for conventions
and exhibitions.
(Author: President of China
Council for the Promotion of International
Trade Beijing Sub-council)
42

China’s Developing
Dietary Supplement Industry
By Jeff Crowther
With the increasingly
large size and forward
momentum of China’s
economy, one would
think there has to be a well-developed
dietary supplement industry. However,
although China has been posting record
gains to its GDP, it is far behind
the U.S., E.U. and Japan in regard to
a well-defined and prosperous dietary
supplement industry. With that said,
having an established dietary supplement
industry is not the measure by
which countries are judged in terms of
economic prowess. Nevertheless, having
one does reflect a larger percentage
of consumers with expendable income
seeking a healthier life, which China is
in the process of building. One positive
sign of China’s consumer growth was
the recently released consumer spending
indicators for March 2011 from
China’s National Bureau of Statistics.
Year on Year comparison of spending
on retail consumer goods grew 17.4
percent and consumer confidence index
was at its highest point since July 2010.
Compare these stats with the rest of
the world and you’ll see that China is
rapidly transforming into the largest
consumer market in the world.
Although there is a growing
consumer base and a need for dietary
supplements in China, the demand
is currently under-developed. For example,
many Chinese consumers are
not accustomed to taking pills or tablets
on a daily basis. The older generation
in China is especially unfamiliar with
dietary supplements. For example, my
wife is Chinese and her mom lives
Jeff Crowther, addressed the Traditional Chinese Medicine International Development Forum held by CCPIT on April
28, 2011.
with us here in Beijing. In the past, my
mother in law has never taken dietary
supplements for two reasons, first they
weren’t available while she was growing
up and second she was not introduced
to the important role supplements play
in maintaining health. However, I’ve
had the chance to inform her about the
value of taking dietary supplements on
a daily basis. She now takes a multivitamin,
a calcium tablet and a fish oil
capsule everyday. Over a year has past
since she began taking supplements.
She now has more energy and feels
much healthier than before. With this
renewed feeling of energy and health,
she has become a very busy lady. She
enjoys acting in local Beijing TV dramas
and has been on many cooking
shows on both CCTV and BJTV. She
is also an avid singer performing in
public at ceremonies and holiday occasions.
Many of her schoolmates have
seen the change and are now interested
in taking dietary supplements to keep
them healthy and active as they grow
older.
Because of the Internet, the
younger generation is much more informed
about dietary supplements.
Young ladies especially are very interested
in buying dietary supplements
that help with keeping their skin young
and beautiful as well as supplements
that assist with weight loss. Young men
are also keen on buying products that
can help them excel in sports and assist
with increasing their strengthen and
43

muscle mass. Over the last six years I’ve
lived in Beijing, I’ve certainly seen an
increase of young men lifting weights
and consuming protein powders and
other dietary supplements to help them
build muscle.
I’d like to clarify what dietary
supplements are and why we should
take them. According to U.S. law, dietary
supplements are vitamins, minerals,
herbs or other botanicals, amino
acids, and substances such as enzymes,
organ tissues, glandulars, and metabolites.
One very important aspect to
remember about dietary supplements
is they are not designed to treat or cure
disease, they are in fact taken on a
daily basis to supplement the diet and
increase nutritional intake. A balanced
diet is very important to maintain a
healthy life. However, as families become
busier with life and work, they
tend to skip meals or eat foods that are
fast and convenient, but lack high levels
of nutrition. For example, I see many
people here in Beijing eating youtiao
( 油 条 ), baozi( 包 子 ), jianbing( 煎
饼 ), guanbing( 灌 饼 ) or a simple piece
of steamed bread( 馒 头 )with soy milk
( 豆 浆 ) for breakfast as they rush off
to work. Although these are tasty foods
and I also enjoy eating them especially
baozi, they lack many essential nutrients.
This is where dietary supplements
play an important role in supporting
health and nutrition for the entire family.
By eating the types of foods listed
above for breakfast together with a
multi-vitamin loaded with vitamins,
minerals and antioxidants we can be
assured our breakfast is nutritionally
more balanced.
Although China’s consumer base
is expanding and there is a growing
demand for dietary supplements, why
isn’t the industry growing much faster?
The short answer is strict government
regulations and a shortage of widespread
education on dietary supplements
and the role they play in health
maintenance. Current government
regulations require large investments of
both time and money to achieve market
approval from China’s State Food and
Drug Administration (SFDA). The
product registration process can take
up to 2 years and cost upwards of US$
50,000 per individual product, so for a
company that has 30 different products,
which is typical in the U.S. market,
they would have an up front investment
of US$ 1.5 million just for registrations
and then have to wait two years before
they could start selling. The bulk of the
estimated US$ 50,000 is actually paid
to a registration consultant that assists
the company to successfully navigate
the registration process. At this point,
consultants are necessary due to the
complexities involved in the registration
process. The process is rigorous and requires
tests such as human and animal
testing at state approved laboratories.
Because SFDA’s current regulations
pose large hurdles for companies, many
foreign and domestic companies choose
not to invest in China’s dietary supplement
industry, which of course stifles
industry growth. Furthermore, because
the industry is being held back, so to
is the spread of education. If we take
a look at the U.S. market for dietary
supplements, about 40 percent of supplements
are sold at thousands of health
food stores across the U.S. Another
30 percent are sold at supermarkets
and the remaining 30 percent are sold
through direct sales (multi-level marketing),
doctors and Internet. In contrast,
the China market does not have
a developed health food store channel
and the amount of dietary supplements
found in supermarkets is very low. This
observation shows us if China reformed
the current regulations to be more like
the U.S., the potential growth in China
would be enormous. However, we must
first see regulatory change take place,
which will encourage the health food
store and supermarket channels to begin
to establish themselves.
China’s dietary supplement industry
or “the healthy food products
industry” as it is known has been the
center of attention over the last few
years among industry organizations and
government officials. SFDA together
with a variety of industry experts and
organizations including China Health
Care Association ( 中 国 保 健 协 会 )
have been working to create a more
transparent and clear regulatory system
that will allow the industry to develop
further and at the same time protect
consumers from counterfeit or dangerous
products.
It is hoped that SFDA moves the
industry toward a more open system
of notification instead of registration.
I would like to define what I mean by
notification compared with registration.
In the U.S., the Food and Drug
Administration requires manufacturers
of dietary supplements to “notify” FDA
of their manufacturing site and the
products they intend to sell including
all the ingredients. FDA recognizes dietary
supplements as food supplements,
which allows manufacturers to combine
them in a variety of ways. For example,
one company might have a multi-vitamin
with 10 ingredients and another
company might have 35 ingredients. As
long as all the ingredients are approved
dietary supplement ingredients, the
manufacturer is free to combine the ingredients
in a way their scientific team
feels is nutritionally most effective. If
an ingredient is not yet approved, then
the company has to submit all historical
and scientific data on the ingredient to
U.S. FDA. Within seventy-five days,
U.S. FDA will make a ruling on if the
ingredient is safe and fits the classification
of a dietary supplement. Because
dietary supplements are derived from
food there is no need to do clinical trials
such as animal and human testing. This
notification process is free of charge,
which helps manufacturers keep costs
down and in the end saves consumer’s
money. In contrast to this system, is the
registration system, which we already
know is very expensive, time consuming
and requires testing of ingredients
that are already known to be safe and
beneficial for human consumption.
Since this article is promoting
China’s SFDA to move the dietary supplement
industry more towards the U.S.
system, let us take a brief look at the U.S.
market. The U.S. dietary supplement
industry can be traced back over 100
years ago, but it really began to develop
after 1994 when the U.S. government
passed the “Dietary Supplement Health
and Education Act” (DSHEA), which
clearly defined dietary supplements, it
allowed the widespread education of
dietary supplements and increased access
to supplements for consumers. As a
result, DSHEA encouraged investment
in the industry especially in the areas of
research and development. Currently,
44

the U.S. dietary supplement market is
the largest in the world and is worth
over US$ 27 billion. The industry offers
over 60,000 products to U.S. and
global consumers and over 200 million
Americans consume dietary supplements
on a daily basis. The size and
success of the U.S. dietary supplement
industry is due to a number of factors
including regulations based on
notification not registration, quality
and effectiveness of the products, consumer
demand for healthier lifestyles,
and increased savings on healthcare
expenditures. The law maintains a
rational approach to the use of scientific
knowledge for structure/function
claims by recognizing a diverse group
of global scientific sources (i.e. NIH
Studies, Commission E monographs,
university studies etc.).
U.S. and Chinese manufacturers
and suppliers would benefit equally
from a regulatory shift in Chinese law
toward notification and recognition
of the dietary supplement industry as
a food based industry being separate
and distinct from the pharmaceutical
industry as well as one that is based on
the approval of ingredients not product
formulas.
This would not only increase business
opportunities for Chinese suppliers
and distributors, but also benefit Chinese
consumers by providing access to an
expanding range of affordable domestic
and imported dietary supplements that
promote health and wellness.
If China’s regulatory system
moves towards a system of notification,
the benefits to government, industry
and consumers will be substantial. One
such benefit would be savings in health
care expenditures. The Chinese government
has spent a great deal of time and
money reforming the medical system
to become more preventative in nature.
If dietary supplements become more
readily available in potencies that reflect
the latest in scientific and nutritional
research, dietary supplements will
compliment these efforts by promoting
health and lifestyle changes for Chinese
consumers. These savings have been
clearly documented in the U.S.
For example, an October 2007
report in the U.S. peer-reviewed publication
Nutrition Journal concluded that the
health of people who used dietary supplements
was better than non-dietary supplement
users. Furthermore, the Lewin
Group, a U.S. healthcare and human services
research group, reported that dietary
supplements were responsible for saving
the U.S. government US$ 20 billion in
medical expenses. Studies concluded
that senior citizens taking 1,200mg. of
Calcium with Vitamin D daily would
save US $16.1 billion, women of child
bearing age consuming 400mcg of Folic
Acid daily would save US$ 1.4 billion
and seniors taking 1800mg. of Omega-3
Fatty Acids per day would save US$ 3.2
billion.
In addition, an economic study
was conducted to record the impact the
dietary supplement industry has on the
U.S. economy. Although the dietary
supplement industry generates over
US$ 27 billion a year in sales, its overall
contribution to the U.S. economy exceeds
US$ 60 billion or 0.5 percent of
U.S. GDP. Some of the study’s detailed
findings include: total tax contribution
was US$ 10.1 billion (US$ 5.3 billion
to federal and US$ 4.8 billion to local/
state); for every US$ dollar spent by the
industry, US$ 2.71 is contributed to
the U.S. economy and the industry is
responsible for creating approximately
half a million jobs across 100 different
industries. The report was completed
by Dobson/DaVanzo, a Washington,
D.C.-based economic research firm.
The study utilized factors such as: supply,
production, research, direct employment,
manufacturing, and taxes.
Although China’s regulatory
system has not made significant movement
over the last few years, it is hoped
that by the end of this year there will
be some signs of headway. Regardless
of the slow progress, those in China
involved in the industry including myself
all envision a bright future. China’s
dietary supplement industry has great
potential and a growing number of
consumers are interested in purchasing
products that will enhance their
overall health. Regulatory reform will
expand China’s dietary supplement
market benefiting both domestic and
U.S. enterprises and will allow China
to surpass the EU, Japan and the U.S.
to become the largest market for dietary
supplements in the world. Free and
open access to dietary supplements benefits
the government, the industry and
most importantly consumer’s health.
Furthermore, supporting industry expansion
will create jobs, generate more
tax revenue as well as support existing
Chinese industries such as retail, shipping,
distribution and research and
development.
(Author: CEO/Executive Director
of U.S. – China Health Products
Association )
45

Technology
Drives Vegetable Industry
A
robot for vegetable planting
is able to examine growing
conditions, detect disease of
the vegetables and pick up
the ripe ones through identifying the
color; a tomato tree is able to produce up
to 3,000kgs of tomatoes; sweet potatoes
are growing in the air; fish and vegetables
are living together harmoniously…
Viewing these, you may doubt that you
were in a fancy world. Actually, you are
here at the 12th China (Shouguang)
International Vegetable Sci-tech Fair.
Technology shines out brightly
The fair, which is themed around “green agriculture, science and future”,
lasted for one month since April 20 in Shouguang City, China’s largest vegetable
production base which is known as “Vegetable Town of China” in eastern Shandong
Province.
It was designed to display advanced agricultural technologies and vegetable
culture development. Various planting technologies and techniques made their debut
at the fair, indicating a new trend in vegetable cultivation.
The aforementioned robot may be the most dazzling star at the fair. The intelligent
robot, self-developed by the organizing committee and several Shouguangbased
institutions, is responsible for management of vegetable in the Pavilion of
Future where it works.
46

By means of high control technology, the robot, on its own
track, can assess the vegetables’ growing environment, such as temperature,
humidity and light, thereby they can water the plants. The
robot can also detect the ripe vegetables with the help of the application
programmed in it. Further, it is able to find out the diseases of
the vegetables and pluck the ripe ones.
It is amazing to have a robot, instead of human beings, manage
the vegetable garden. Probably, this is the first time that a robot
is able to detect the ripe vegetables by identifying their changed
colors. Though the robot is just kept for display and whether it can
handle plantation completely is still not certain, it is helpful for farmers
and firms for sure.
The Plant Factory, making its second appearance this year, has
hogged attention from visitors and media. It is actually a man-made
entironment or an artificial greenhouse with LCD light source. The
Factory is composed by enviromental close system and control system
of light, temperature, moisture, carbon dioxide as well as nutrition.
The lighting source, the energy source of plants’ growth, is the
key in the system. Besides, the application of nutrient solution can
speed up the crops’ growth.
By means of automatic computer control, it can control the
temperature and humidity, supply carbon dioxide and apply ultraviolet
sterilization, based on vegetables’ growing needs.
As it saves water, electricity as well as earth, the Factory can
produce more vegetables, several times of those cultivated in traditional
ways. Therefore, vegetable production will no long be limited
by region, sunshine, etc. Moreover, in the totally enclosed system,
aseptic production is possible without using any chemicals to wipe
out insects.
Experiments prove that vegetables growing in this environment,
have no difference with those common in terms of vitamin,
sugar content and taste. Considering food safety, the Factory enjoys
great advantage as it can produce high quality organic vegetables.
The Plant Factory has made it possible for environment-friendly
agriculture. At the forefront of modern agriculture, it frees agriculture
production from bondage of nature, foretelling the future development
of agriculture.
The cultivation mode “Vegetables above, fish below” is also appealing
to visitors. It is a cultivation circulation mode through comprehensive
utilization of resources. The mode works in the following
way: fish are raised in the pond, while the vegetables
are cultivated with aerosol. Then the fish excrement
can be used as the vegetables’ nutrient solution after
degradation and filtration, and the residue, after the
absorption of the vegetables, will be discharged to the
pond again. In this way, space, fertilizer and water are
saved by making full use of them.
Flying Saucer Cultivation Mode is aimed at
producing vegetables in outer space, by simulating the
environment in space station and creating artificial
Links:
The 12th China (Shouguang) International Vegetable
Sci-tech Fair attracts more than 6,000 participants from over
20 countries and regions, including South Korea, France and
India, with their latest agricultural achievements.
The fair features an exhibition area of 350,000 square
meters, which is home to 14 exhibition halls, four vegetable
greenhouses, a vegetable picking garden, etc.
During the fair, a total of 50 kinds of cultural and business
activities have also been held, including a farming cultural festival,
an international gardening forum, a trade fair, etc.
The fair, the only special meeting in the vegetable industry
in China, has been held annually since 2000. Last year it
attracted a total of 1.86 million visitors and achieved a trade
turnover of RMB 16 million.
47

growing conditions of vegetables. The mode covers
artificial LED light source, control systems
for temperature, humidity and carbon dioxide,
etc. Hopefully, it may help meet the needs of
vegetables in space exploration and ocean navigation.
There are still many other cultivation patterns,
such as Aerosol Cultivation, Vertical
Cultivation, Tower Vertical Cultivation, Rolling
Plantation, Balcony Single Plant Plantation, etc.
Various kinds of technologies are shining out
here and there at the fair.
“I am so thrilled by these technologies that
I have never seen before,” said Mr. Zhang from
Jining, a city in Shandong Province.
Technology rooted in villages
One may doubt these technologies are only
showcased at the fair, but not used in actual
production. Actually, this is not true. Some of
the techniques are being applied in farm lands or
factories.
Sanyuanzhu Village, the birthplace of the
country’s greenhouse technology, has seen the
increasing use of technology in its plantation and
production of vegetables. This characteristic village
has four demonstration greenhouses which
have links with a digital display, showing the
temperature and moisture inside the greenhouses,
for efficient management.
This is a beginning of the Internet of
Things (IOT). Now the houses themselves have
entered their fifth generation.
Relying on its greenhouse technology, the
village is attracting visitors from all over the
country for study or tourism. A visitor center has
been established in the village.
“Our village is eyeing multi-development
and we have more and more visitors these years.
A new training school is to be established for
the promotion of the greenhouse technology
nationwide, in response to Prisident Hu Jintao’s
entrustment. During his visit to our village, he
asked Wang Leyi, secretary of the village Party
branch, to do so,” Wang Baoquan, the village
chief of Sanyuanzhu, told China’s Foreign Trade.
“The ozone sterilization system and remote
monitoring system have been used in the greenhouses.
Some of the technologies showcased at
the fair are suitable for sight-seeing agriculture,
while some are beneficial for actual cultivation,”
said Ma Yingqun, assistant to the village chief.
“This is my third time here for study of
their technologies and experience, since farmers
in my village still need effective ways to get rid
of poverty and become better off,” said Wang
Shifeng, the village secretary form Zepan Village
of Longyao County, Hebei Province.
48

Fitness Equipment Brings
Business Opportunities
By Lin Feng
Nowadays, as you walk in
the domestic cities, colorful
and dynamic signs of
g yms will always come
into your view. And when you walk
into the gym, you must first be greeted
by rows of neatly stacked treadmills.
People running on the treadmill,
regardless of age, regardless of
gender, can control their running
speed all by themselves, with sports
games playing in the monitor in the
front of the equipment, and ears full
of beautiful music from their iPods.
Such a picture of “doing my own
fashion fitness” is really exciting. As
the consumers are enjoying the fun of
exercising, the operators of the gyms,
the fitness equipment manufacturers are truly delighted at heart, because
while the fitness equipments are running, so are their business opportunities
– unstoppable.
Sporting goods industry is booming along with sport games
It is proved by past experience that hosting sporting events, especially
comprehensive large-scale international sports events, will promote the
economic development of the host city or country much better than usual.
As for the industry of sports, including the manufacture and sale of fitness
equipment, the effect is even more powerful.
Take the 2008 Beijing Olympics as a symbol, a series of international
sporting events have appeared in China. Before it we have the 2007 Asian
Winter Games held in Changchun, after it we have the 2009 National
Games in Jinan and the just-closed Asian Games held in Guangzhou. In
addition, we also have the China Open held in Beijing and the Tennis
Masters Cup held in Shanghai, the F1 Grand Prix Shanghai Station, and
so on. These world-class sporting events with world-class sport stars have
greatly aroused Chinese people’s passion for sport. This passion prompts
49

an active participation in various sports
activities, and has greatly stimulated the
domestic sporting goods market, as well
as driven a consumption boom in sports
equipment.
Let also take Beijing as an example.
After the 2008 Beijing Olympic Games,
Beijing’s sports industry has entered a
stage of rapid development.
In 2009, the total revenue
of Beijing’s sports industry
realized RMB 50.2 billion,
with the added value
of RMB 9.14 billion, up by
91.3% and 51.6% respectively
compared with the
year 2006. The sports industry
has achieved an average
annual growth of more than
15%, exceeding the national
economic growth rate. In
the recently concluded fifth
Beijing International Cultural
& Creative Industry
Expo, Zhang Yuan, deputy
director of Beijing Municipal
Development and Reform Commission,
said that as of now, the number of
registered sports venues and organizations
in Beijing had reached 1020. These excellent
facilities would definitely bring longterm
influence to the future development
of sports industry. The industrial system
led by sports service industry and sports
marketing industry has gradually taken
shape.
Judging from the domestic sports industry
as a whole, there is still a huge gap
between China and the western countries.
According to relevant data, the current annual
output of the global sports industry is
up to more than US$4200 billion, and has
maintained an annual growth rate more
than 20%. The output value of China’s
sports industry is currently less than 1%
of its GDP; while in developed countries,
the proportion has reached between 2%
and 3%. However, in a sense, the gap can
be turned into opportunities. Because in
the current and future period of time, the
theme of China’s economic development
is to adjust the industrial structure, and
to change the mode of economic development.
The sports industry is an integral
part of green GDP, and the development
of sports industry is of great importance
on the industrial restructuring. As a developing
country, China has a huge market
50
THE OUTPUT
VALUE OF CHINA’S
SPORTS INDUSTRY
IS CURRENTLY
LESS THAN 1% OF
ITS GDP; WHILE
IN DEVELOPED
COUNTRIES, THE
PROPORTION HAS
REACHED BETWEEN
2% AND 3%.
space for upgrading the sports industry.
The recent fact bears proof of the above statement: the national policy
orientation of developing the tertiary industry has provided a preferential
policy support for the sporting goods industry; the growing service trade
in international market provides a good market environment for the sporting
goods industry, and has enhanced the attraction of social capital to
the sporting goods industry. Accordingly, we can make a clear conclusion
that the future of our sporting goods market will be great. The domestic
manufacturing and sales company of sports equipment
should be realistic and relying on the major opportunity
of the new round of industrial restructuring. They should
strive to make full advantage of the national policy to
strengthen the company development as well as to increase
their brand construction.
The deeply rooted public sense of sports and
fitness
In recent years, China’s economy has maintained a
rapid growth momentum. With people’s living standards
gradually advanced and the continuing development of
public sense of sports and fitness, the sports consumption
of the urban population is on the rise, and the concept of
sports consumption has also undergone a major change.
The sports consumption is becoming a new fashion icon in
people’s way of consumption. According to relevant survey,
among those surveyed, 64% have an average annual
consumption of sporting goods at RMB 50 to 500, 6.7% have more than
RMB 500, much of which is the consumption of fitness equipment and
sports equipment.
When interviewed, the staff in the Beijing Yihe Sunshine Sports
Club presented the condition of the surrounding residents coming to their
club. They say that in people’s past concept, fitness instructors always began
to work in the afternoon or even close to the evening. But now the
situation is very different. Members can get in the club and use the sports
equipment for exercise when it opens at 8 am. The fitness instructors also
begin to work in the morning, not in the afternoon. Because there are
many appointments of equipment exercise, the club has increased the
number of duty instructor from one to two. They also told the reporter
something interesting: when the club just opened, there had been situation
that seven or eight people waiting for one treadmill. With the increase in
the number of treadmills, this kind of funny but embarrassing situation
did not happen again. But new trouble keeps coming along. This time it is
the rapid increase in fitness population that makes the treadmill being in a
state of overload. There was a time when one treadmill being broken every
day. Although this is annoying, it is a sweet trouble, reflecting the deeply
rooted sense of public fitness, and an active response in sports consuming.
The lively scene in the above mentioned club is just an epitome of the
booming situation of fitness clubs in cities of China. They all benefited
from the support of national policy. On March 24, the State Council issued
the “Guiding Opinions of Speeding up the Development of Sports
Industry”, and specifically noted the need “to strengthen the construction
and management of public sports facilities”. In recent years, the Sports
Lottery Public Welfare Funds has provided many places and equipment
for the “National Fitness Project”. As of the end of 2009, only the state
level of the Sports Lottery Public Welfare Funds has built nearly 9,000
fitness path, nearly 150 fitness centers, 22 fitness activity bases, and 12
outstanding sports parks. Not to mention the construction of the fitness
facilities by the various levels of sport lottery funds.

The heat of consumption is
irresistible
Statistics show that China’s current
fitness equipment market is more than
RMB 50 billion, and has nearly 500 fitness
equipment manufacturers which can produce
almost all the common types of fitness
equipment in the world and process a
large number of foreign brands. The Madein-China
fitness equipment accounts for
about 60% in the international market
share.
The domestic f itness equipment
market is divided into two categories: the
home-use market and the commercial
market. The scale of the home-use market
is relatively larger and with a faster growth
than the commercial market, and thus
has once been the major focus of the fitness
equipment companies. The home-use
equipment is generally small in size, light
in weight, and easy to combine and operate.
While the targets of commercial use
equipment are stadiums, community sports
centers or schools, commercial buildings,
etc. Their purchases are fully functional high-end products.
Reporters learn from several sports shops in Hangzhou that the
most popular home-use fitness equipment is the electric treadmill. Its
sales volume is close to 60% of the overall fitness equipment market, with
around 50 treadmills sold in one shop in one month. The following are
multi-functional fitness equipment and exercise bike, with the proportion
of approximately 15% and 10% respectively. The price of treadmill ranges
from RMB one or two thousand to thirty or forty thousand, but the retail
customers mainly purchase those priced from two to four thousand.
In addition, the exercycle, which takes up less area and priced less
than five thousand, has been favored by retail consumers. The sales staff
in Ningbo New Noble Sports Goods Co., Ltd. says that as the exercycle
needs less space than the treadmill, and is especially good for older people
to exercise their knees and legs. Thus, young people often like to buy it as
a gift to their parents. Massage chair with health care function is another
popular choice for family gifts. In particular, the ones which have a variety
of massage modes, and can measure heart rate are better in product
sales. Thus, towards the end of the year, the sales of massage chairs will
mostly increase.
Since this year, online shopping has become more and more popular,
especially online group purchase. The channels of fitness equipment sales
are also advancing with the times. According to reporters in Hangzhou,
different from the sales of the treadmill sold in the store, nearly thirty
percent of exercycles and massage chairs are sold through the internet and
TV home shopping. The consumers only need to tap a few keys or dial the
phone, and then wait for their delivery at home.
When interviewing some units in Beijing, reporters noticed a particular
phenomenon: many units had set aside special rooms for fitness activities
for the workers. Inside the room there were a variety of fitness equipments.
Reporters found out that many of these devices were purchased through
online shopping or group purchase. Through those means of purchase, the
consumer can not only get a price discount, the store is also responsible to
send the products directly home.
The reporters also learned that, in e-commerce, wholesale and retail
of fitness equipment also has a strong development momentum. Through
print and video media publicity, and the way of seeing samples online and
direct delivery from the factory can reduce the intermediaries between
supply and demand, thus achieving a lower pricing of the fitness equipment.
According to the statistics released by the Department of Sports
Economics in the General Administration of Sport of China, in 2007, the
added value of China’s sports industry reached RMB 126.523 billion, accounting
for 0.49% of the total GDP, increasing 22.83% compared with
2006; In 2008, the added value was RMB 155.497 billion, accounting
for 0.52% of the total GDP, with an increase of 16.05%. In the domestic
sports industry, although comparing with the sports shoes and apparel
industries, the sports equipment industry is relatively minor and started
late, with relatively fragmented industry structure and weaknesses of
small enterprise scales, there is still a prospering prospect in the sports
equipment industry. Take the treadmill as an example. The current gross
sales of treadmill is RMB10 billion; in accordance with the market scale,
the maximum capacity of the treadmill market in China can be up to
nearly a thousand billion. Another point we must pay attention to is along
with the upgrade of the sports industry, there are a large number of sports
equipment companies which are prepared to be listed. And China’s No.1
sports shoes and apparel brand – Li Ning, has clearly sent the signal of
purchasing sports equipment assets. The market competition has already
been started.
51

“Created in China”
Takes off at Canton Fair
By Zhao Ailing
At the Canton Fair, the eyecatching
household article
booth of Fujian Deyi International
Trade Group Co.,
Ltd. attracted lots of buyers by virtue
of its European-style elegant layout
and simple, low-profile yet luxurious
product design. The company’s primary
business is to export original light industrial
products under six categories.
All the household articles Deyi displayed
at the Fair were originally designed
by its professional design team,
which also cooperates with renowned
designers from France and Germany to
develop new products and innovate &
modify the external appearance of its
products in order to keep up with the trend of the world fashion.
On April 23 rd , the 2 nd session of the 109 th Canton Fair opened as scheduled,
where such traditional labor-intensive products as gifts and toys were displayed.
This year, the foreign trade environment has been worsening: rising business cost
due to higher prices of bulk commodities and labor force, coupled with RMB appreciation,
poses a new round of challenges to enterprises. But some enterprises
were still founded to have more or less made headway in the path of “created in
China”.
China’s exports have long come from the manufacturing sector and its reputation
of being the “world’s factory” does not bring high returns. Then, once the
cheap raw materials and the large working-age population no longer exist, where
will China’s export go?
Innovative design is an important link for the shift from quantity expansion to
quality upgrading. “Enhancing product design capability is pivotal for China-made
products to nudge into the two high-end links of the global manufacturing—brand
and marketing,” said Li Rongchan, assistant of the Minister of Commerce, at the
unveiling ceremony of the Product Design & Trade Promotion Center (PDC) es-
52

tablished at the Fair.
In the past, the Canton Fair witnessed
the rising of “made in China”,
while “created in China” is taking off at
today’s fair.
To win the market with design
Every year, Deyi’s designers attend
the world’s largest consumer
goods expo—Ambiente & Tendence
Frankfurt, where the company’s designers
and marketers communicate
with clients or purchasers to get the upto-date
design information and obtain
feasible suggestions via communicating
the design department’s design scenario
to purchasers. At the same time, the
company’s designers and marketers try
to follow the latest trend (eg. design
style and material selection) through
communicating with their counterparts
from the purchaser/client side, said Mr.
Cui, Chief Designer of Deyi, when
speaking of how the company’s design
keeps abreast with the world fashion in
a spot interview with Guangzhou TV
Station.
Since the domestic higher education
for design started late, Deyi’s designers
mainly accepted overseas education
and some even had worked abroad,
Mr. Cui introduced. Lin Yanping, a
designer of the company interviewed by
the reporter, graduated from a domestic
fine arts academy, but every year she is
sent to Ambiente & Tendence Frankfurt
to enhance professional expertise.
“Despite a higher price compared
with the alike products, our products
still sell well in the European and
American market because of the rising
R&D expenditure during these years
for high product quality and favorable
design,” said Mr. Liang, a business representative
of Deyi.
“Proper market positioning is
closely related with the product design
philosophy and the enhancing of the
company’s strength,” said Li Xue, Executive
General Manager of Ariamotion
(Dalian) Co., Ltd. As a leader in
Northeast China’s colored handmade
glassware, Ariamotion attracted purchasers’
attention on the strength of its
fashionable, fresh and romantic design
philosophy—“breathe the air of design”
over the years. In the context of
a declining European and American
market due to the financial crisis, this year cheap products are still
favored in the European market and purchasers become more demanding,
Li added. At the fair, products with high-grade appearance,
favorable design and low cost reaped many orders. According
to Hao Wentai, General Manager of Qingdao T & T Houseware
Co., Ltd., to narrow the gap with the European market, the company
has invited European designers to take charge of product design,
including building the brand philosophy—“quality, sustainable,
slow-paced & natural life”. In order to cater to the European
preference, the company added natural materials, which were still
favored by purchasers despite their higher price.
I learned from the Jiangsu trade group at the Fair that the
export-led enterprises in different fields pin their hope on design
innovation for a competitive edge and higher product added
value and have set a good example for the traditional enterprises
to upgrade and sharpen their competitiveness. East City (Wuxi)
Corporation, a manufacturer of lock products, displayed its “crystal
diamond lock series” at the Fair. East City reportedly attaches
great importance to product design and cooperates with 15 global
designers for development of new products. With product portfolio,
packaging and transportation fully in accordance with the
supermarket’s commodity layout, the set of logistic solutions innovated
by Wuxi Flagship Tools Industry Ltd. particularly for the
European hypermarket greatly cuts the labor cost and is thus favored
by purchasers. In the course of export transformation, many
enterprises begin to locally manufacture China-created products,
providing a new perspective for Chinese enterprises to go global.
As a leader in manufacturing of industrial electric equipment,
Sassin International Electric Shanghai Co., Ltd. set up a R&D
center in Germany and a design headquarters in Italy, where all
the designers and the R&D personnel are Europeans, in a move to
design up-to-standard products suitable for the European market.
Enhancing product quality is the way out for enterprises,
replied many participating enterprises at the Fair when asked how
to deal with the rising cost. Given the fast-changing external environment,
enterprises are confronted with the challenge of a rising
cost due to higher price of materials and fluctuating exchange rate
53

and enhancing
product quality
is an inevitable choice for the
enterprise, said Liang Mei, a business
representative of Guangdong Haijilun
Cultural Education Product Co., Ltd.,
a manufacturer specializing in preschool
furniture. Owing to the lack of
design talents and experience, imitation
served as a shortcut for many enterprises
to become stronger and to rapidly
expand in the past. But this shortcut no
longer adapts to the present market, as
an enterprise without design and innovation
capabilities will undoubtedly end
in being eliminated after lowering price
and product quality.
Overseas design fuels
transformation & upgrading of
enterprises
“The past Canton Fair witnessed
the rising of ‘made in China’, while
today’s Canton Fair is witnessing ‘created
in China’ taking off,” said Li
Rongchan, assistant of the Minister
of Commerce, at the PDC launching
ceremony held at the 2nd-session Fair
on April 23. The PDC set up for the
first time highlighted the Fair and design
agencies from such countries and
regions as Hong Kong, Holland, Spain,
France, Greece and Taiwan made spot
displays on the marina along the Pearl
River connecting with District A of the
Fair. And the newly established PDC
launched nearly ten activities including
theme forums, sodality for brand enterprises
and design service match making
respectively in the three phases of the
Fair in an effort to promote exchanges
between enterprises and overseas designers.
“As traditional exports are weakened
by increasingly severe constraints
from resources and the environment,
it is unlikely to continue to depend
on low cost and scale effect for larger exports.
Therefore, it becomes more and more pressing to transform and
upgrade foreign trade,” said Wang Runsheng, Vice Director of
China Foreign Trade Center, at the ceremony celebrating the establishment
of PDC on April 23 rd . “The newly established center at the
Fair has served as a platform for overseas professional institutions to
cooperate with the participating enterprises at the Fair for product
design & development and for the local enterprises to look for overseas
support so that Chinese enterprises will earn more opportunities
in the international market with novel products under the assistance
of international designers.” In the changing global market,
the world needs more diverse products from China and Chinese
enterprises thus attach greater importance to product designs and
hope to access and make full use of global design resource via faster
channels, Wang added.
“China has become the world’s manufacturing center, but its
enterprises mainly engage in such simple labor division as labor-intensive
and low-profit OEM, while the profitable design and R&D
together with terminal marketing are dominated by the developed
countries in Europe and America. The participating enterprises at
the Fair should shift from the low-cost strategy to a differentiation
strategy for transformation and upgrading. However, the simplex
product design of many enterprises cannot meet and even deviate
from the diverse demand in the international market. More and
more enterprises come to realize that on one hand, excellent international
design resources may serve as a fast, convenient and effective
path for them to nudge into the international market; on the other
hand, as overseas purchasing groups desire more for product design,
product with novel and practical design always promise enormous
market potential,” said Wang Zhiping, Secretary General of Canton
Fair and Director of China Foreign Trade Center. Some enterprises
have adjusted their product mix and grabbed market share by cooperating
with excellent international designers. PDC established at
the Canton Fair aims at cooperation between inbound world-class
design resources with China’s top export-led enterprises gathered
at the Fair, which will sharpen the international competitiveness of
Chinese export-led enterprises with adjusted exported product mix;
meanwhile, it will serve as a good starting point for global design
resources to flow into the Chinese market, Wang explained.
It is widely regarded that transformation and upgrading of
Chinese foreign trade enterprises will bring about abundant opportunities.
“The establishment of PDC will provide opportunities
for the business circle both in China and Holland, and outstanding
Dutch design enterprises will tap into the intensive cooperation op-
54

portunities in the process of Chinese enterprises’ transformation and
upgrading,” said Antonius van Zeeland, the Dutch Consul-General
in Guangzhou.
Against the backdrop of an upward cost for export, international
designers can be depended on for upgrading product grade,
the enterprise representatives told the reporter in the exhibition area
for internationally renowned design agencies on the marina along
the Pearl River.
Overseas designers have long before begun to help domestic enterprises
explore the market. Paul Cohen, President of the Australiaheadquartered
Cube Design, told the reporter that Cube China
Design was set up as early as 2004 and now two subsidiaries were located
in Shenzhen and Foshan of Guangdong. The household appliances
Cube designed are all manufactured in China, such as through
Midea, and are sold to Philips of Europe, RL Polk of Russia and
Sonoma of the US.
“China’s manufacturing industry is developing so fast that pure
manufacturing can no longer keep abreast with it. We’re looking
forward to a transition from ‘made in China’ to ‘created in China’,”
said Enric Batlle, a Spanish designer at the theme forum “innovation
leading future” hosted by PDC on April 24.
At the forum, five lectures were arranged for seven designers
from four countries — “2012 fashion trends, interpretation of design
elements and case analysis”, “Barcelona design means business opportunities”,
“western design of Chinese products”, “innovation to
bring business opportunities”, and “how to design new products”.
“Design can change product value, enhance productivity and even
transform people’s lifestyle,” said the Spanish designer who emphasized
the significance of design towards products. The Dutch
designer Michel Millot introduced the exhibiters a practical design
law—daily necessities and household articles follow last year’s clothing
trends. Adopting Cola Cao’s packaging as a case, Designer
Romon Martinez explained the five design procedures and the design
scenario embodied in them. At the beginning, manufacturers
need to deliver as much as possible information to designers, such as
their production capacity and the expected effect, so as to provide a
clear direction for designers, Boukje Koch held.
On the two afternoons of April 25 and 26, the design match
making hosted by PDC was held on such themes as product design,
brand, packaging and commercial space design. More than 30 designers
from seven countries and regions were present at the two-day
event. Both designers
and enterprise
representatives were
looking forward
the event. Many
designers had identified
cooperation
intention with
enterprises, said
Xiao Rong, Vice
General Manager
of the Canton
Fair Work
Department in
charge of match
making, when
addressing the
event. Xiao also introduced the three
functions of PDC: first, PDC will
provide long-term, diverse and more
considerate services for enterprises.
Enterprises may rely on PDC to look
for suitable partners. Second, the match
making also serve as a platform for the
participating enterprises to broaden
their horizon, upgrade management
philosophy and perfect management
process. Third, designers not only design
products, but also make marketing
scheme, which is a significant link
for enterprises to develop. Thus, the
management of enterprises will also be
improved.
After a brief self introduction from
designers, designers and exhibiters conducted
free exchanges. “Xinjiang boasts
quality local specialties, but without
bands, even the best products will
sell at a low price. Through the match
making, we hope to find outstanding
designers to promote our products with
higher added value,” said Zhang Jie,
General Manager Assistant of Xinjiang
Yaxin Int’l Economic & Trade Co.,
Ltd., who attended the match making
every afternoon of these two days and
marveled at the creative designs by the
designers. Familiar with the local market,
overseas designer can design products
better catering to the aesthetic taste
of the international market, which will
help enterprise to manufacture fast-selling
products. The reporter learned from
the Ningbo trade group that more than
30 enterprises in Ningbo such as Changrong
Electrical Appliance Co., Ltd.,
Ruyi Joint Stock Co., Ltd. and Homa
Artware Co., Ltd. had hired overseas
designers for R&D and design. Many
Dutch design enterprises have served
Chinese enterprises for years, and some
have set up branch offices in Guangzhou
and Hong Kong so as to look
for long-term partners, said Zhong
Wenyi, a member from the Dutch design
delegation.
PDC reportedly plans to provide
more booths for designers at the
next Canton Fair so that enterprises
will have more choices. In addition,
PDC members will enjoy professional
trainings, as well as opportunities for
attending overseas exhibitions and innovation
competition of the displayed
commodities.
55

On Financing Models of
Real Estate Enterprise
By Su Keqiang
摘 要 : 在 国 家 加 大 宏 观 调 控
力 度 、 紧 缩 房 地 产 信 贷 规 模 的 背 景
下 , 房 地 产 企 业 面 临 严 峻 的 资 金 压
力 , 融 资 能 力 成 为 决 定 房 地 产 持 续
发 展 的 决 定 因 素 。 国 内 房 地 产 企 业
的 融 资 方 式 较 多 , 本 文 深 入 浅 出 地
介 绍 了 常 见 的 十 种 模 式 , 简 单 地 分
析 了 各 种 模 式 的 优 缺 点 , 并 结 合 工
作 实 际 , 推 荐 和 较 详 细 地 介 绍 了 三
种 融 资 模 式 : 个 人 委 托 贷 款 、 信 托
融 资 、 资 产 证 券 化 。
Abstract: Against the
background that the central government
is strengthening macro
control and tightening credit
scale of real estate businesses,
financing capacity becomes the
determinant for a real estate enterprise’s
development. Domestic
enterprises have many ways of financing,
and this paper describes
ten common models, simply
analyses the advantages and disadvantages
of each model, while
explains and recommends three
financing models with practical
examples: individual entrusted
loan, trust financing and assets
securitization.
关 键 词 : 房 地 产 企 业 ; 企 业 融
资 ; 个 人 委 托 贷 款 ; 信 托 融 资 ; 资
产 证 券 化 ; 股 权 融 资
Keywords: real estate enterprise,
enterprise financing,
individual entrusted loan, trust
financing, assets securitization,
equity financing
I Introduction
Real estate industry features in
capital intensive, long development
cycle, great input, high risk and so
on. Traditional financing ways for
real estate enterprises mainly include
se0lf-funded plus bank loans. Since
the People’s Bank of China issued
No. 121 Paper, financial institutions
tightened cash flows, enterprises solely
dependent on commercial banks for
financing get into difficulties, meaning
financing capacity has become a
determinant for the sustainable development
of a real estate enterprise.
The financial system in China is
not mature, so real estate enterprises
should not only be confined to bank
loans, but also seek for more financing
channels and fully play the diversified
financing functions of the society, for
survival and further development.
Only enterprises with timely innovation
in financing and plenty of capital
can survive and develop. Therefore, it
is necessary and meaningful to study
and analyze various financing ways.
II Common financing model
for real estate enterprises
Domestic real estate enterprises
have different financing models, each
with advantages and disadvantages,
and they are summarized as follows:
a. Bank loans
This is a traditional financing
method. According to statistics, before
No. 121 Paper from the People’s
Bank of China, real estate projects
sourced about 60% of the fund directly
or indirectly from banks. Bank
loans include credit loans, mortgage
loans, etc. Some enterprises used to
mortgage the land they take for loans,
arrear part of land transferring fees,
stage the project development, subcontract
the project with advance
capital and forward sale, etc. to rapidly
recover funds. Nowadays, these
ways are not workable.
b. Institutional investments
+ bank loans
Institutional investments plus
bank loans, this model is also referred
as bridge loans. When real estate
enterprises are not able to self-fund
for land grant fee, etc., institutional
investors provide short-term capital
support (bridging), to keep the project
moving (crossing bridge). When
the projects have cash inflow, Banks
began to loan. For enterprises targeting
at further development, this
model only ease the cash tightness for
a while, not a guarantee for long-term
financial support.
c. Equity financing
Equity f inancing model is
broadly adopted in real estate industry.
In order to get financed, many
real estate project developers are
willing to attract funds through capital
and equity increase. The largest
shortcoming of this model is that the
developers have to give out a large
part of profits, which is not quite acceptable
for companies with good
projects. In addition, as equity financing
involves management and administrative
power, enterprises for longterm
development would not prefer
this method.
d. Corporate bonds
This method is often used for
new projects, with a higher interest
rate than that of banks of the same
period. Large enterprises generally
56

issue more bonds, while general real
estate projects seldom can get a chance
to issue bonds. The requirements on the
bond-issuer are strict, only exclusivelystate-owned
companies, public companies,
and limited liability companies
established by two state-owned investment
subjects are qualified. Meanwhile,
the bond-issue should be entrusted to
a security company, and there are strict
requirements for the enterprise asset-liability
ratio, capital fund and guarantee.
The procedure is complicate and rigorous,
and because of the limited size and
activities of China bond market, both
issuing and holding bonds are risky.
e. Financing by listing
Financing through listing in the
stock market is a well known financing
method. Besides domestic security
markets, listing in overseas especially in
Hong Kong stock markets are preferred
by domestic enterprises.
Due to numerous restrictions
on real estate enterprises to go public,
back-door listing is the dominant way
for them to complete the plan. If they
can technically make use of back-listing,
enterprises will get financed easily.
Long process, complex procedure, high
cost, and strict qualification requirements,
all these would fail most real
estate companies.
f. Joint financing within the
industry
Enterprises in the industry join together,
collect idle capital in other fields
and put it into enterprises or projects in
need of funds, while the later pay for
the utilization. With this mutual and
self financial assistance, enterprises can
boost the project development, improve
surrounding environment, and optimize
the use of funds. But this model is
confined to a small range and projects
with small amount of capital needs, and
is not suitable for relatively large projects
with great investments.
g. Project financing
This model is used for specific
projects. Project undertaker (meaning
shareholders) sets up a project company
for a specific project, applies for loans
with the project company as the borrower,
repay the loans with the cash
flow and earnings of the company, and
mortgages assets of the company as
loan collateral. Project financing raising
capital relies on the project initiators’
credit or assets, while loan banks qualify
the repayment ability through assets
of the project and future cash flow.
This mode is commonly used for
power generation, road, bridge and
other large infrastructure projects with
stable cash flow, and now large petrochemical
projects are included.
h. Individual entrusted loan
This model is to finance specific
areas and groups through cooperation
between real estate enterprises and
banks and other financial institutions.
Individual investors entrust banks to
loan idle capital to real estate enterprises,
to get a fixed return much higher
than bank deposit interests of the same
period, while real estate companies get
loans special for real estate development
projects, and take the responsibility of
repaying capital and interests on schedule.
i. Trust financing
Compared with bank loans, real
estate trust financing can not only reduce
the overall operation cost of real
estate industry and cut financial costs,
but also be good for continuous use of
real estate funds and the development
of real estate enterprises. With trust
financing, real estate companies can
get direct loans, equity investment, and
asset securitization and so on, via trust
investment companies’ system arrangement,
innovation design and implementation.
Trust has unique systemic
advantage, vast innovation potential
and great flexibility, and can serve real
estate companies of different levels and
different grades.
j. Asset securitization
Asset securitization means turning
commodity apartments into financial
products to be sold with vouchers.
Real estate securitization refers to
representing investments in real estate
projects in the form of securitization,
which turns the direct property rights
between investors and investees into
securities. Overseas practices prove
that real estate securitization can not
only expand the capital sources financial
institutions involving in real estate
mortgage loan business, but also greatly
enhance the liquidity of mortgage loans
by financial institutions to real estate
industrial players. From an investor’s
point of view, investment in real estate
securities can reduce survey costs for
investors into individual cases, and will
be helpful for various investors to get in.
For a long-term development,
domestic real estate enterprises need to
develop various financing models, and
real estate securitization is the trend.
III Comparison and selection
of real estate enterprise
financing models
Besides trust financing, there are
many other financing models like corporate
bonds, issuing stocks and listing,
bank loans, equity investment, industrial
funds, etc. In fact, most financing
methods have disadvantages. Here we
will select and explain three practical
or potential financing models in detail,
in hope of being helpful to Changqing
Property Group Co., Ltd. in the
financing and sustainable development.
a. Individual entrusted loan
Xi’an Changqing Property Group
Co., Ltd. tried a low cost financing
method in 2004 -- individual entrusted
loan, which had a good result. After
several months’ operation, the company
has attracted an accumulative fund of
60 million RMB, cutting financing
cost by 1.20 million RMB. Judging
from current results, this method is
practical for Changqing.
At present the procedure for individual
entrusted loan is: the principal
(depositor) deposits capital in a specific
branch of China Construction Bank,
and signs relevant legal documents with
Changqing, entrusting the bank to
make loans to Changqing. The loan is
one-year term, with an interest rate of
4.03%, meaning the principle will have
a net return of 3.8%, deducting stamp
duty, interest tax and so on.
Individual entrusted loan adds a
new way for employees to make investments,
and also a try by Changqing in
market financing, which can accelerate
housing projects development, meeting
oilfield workers’ demand of a home in
cities. Changqing should keep on this
practical financing model, and gradually
expand the range.
b. Trust financing
In 2004, trust products including
3rd Ring Road fund trust, Shaanxi
Power fund trust, Shaanxi Natural Gas
57

fund trust caused a buying wave in Xian.
Take the supporting residential
project of Science and Technology Park
of Xian Jiaotong University for example,
under several principles’ entrust, trustee
utilize the collected trust funds in the
residential project based on the principles’
will, and under the condition that
the risk is under effective control. Taking
advantage of the skills and abundant
experiences in financing, trustee can
provide professional financial services,
and obtain trust returns. The trust plan
involved an amount of 160 million
RMB, providing one-year, two-year and
three-year contracts, and the yield for
three-year investment was 4.5%.
Trust products can flexibly adapt
to and deal with various real estate economic
and legal relations, overcoming
difficulties other methods fail to solve.
Trust is flexible in delivery, and can be
designed into custom fund trust products
according to the enterprise’s operation
requirements and the project, thus
expanding choices for both the supply
and the demand.
In view of current operation
modes, there are three modes for real
estate enterprises using trust for financing:
(1) Conventional Mode of Loaning
This is the same with conventional
commercial bank loans, and the operation
includes five steps:
First, property developers and
trust investment companies negotiate
on the project financing and sign agreement;
Second, trust company applies to
the relevant governmental departments
for approval for the design and distribution
for the trust products;
Third, the trust company issues
trust vouchers publicly to investors;
Fourth, the trust company puts
the funds raised from issuing vouchers
into the real estate projects as credit
loans;
Fifth, developers complete construction
and sale of the project, and
trust company gets the funds repaid.
This model is easy to manage, and
has a stable financing costs, but it has to
meet the requirements of 200 vouchers
with each no less than 50,000 RMB.
This model has limitations in the
amount (100 million RMB or so) and
the scope of the funds.
(2) Staged Equity Financing
In this mode, trust companies
inject capital into real estate enterprises
through taking equities in it. When
raise funds, the trust companies invest
in real estate companies through capital
increase, and hold some equities in
it. Real estate enterprises promise to
buy back the equities in two years at a
premium price. This mode takes advantages
of trust, and can function where a
bank can’t (as banks are not allowed for
industrial investments).
This procedure is:
First, trust investment companies
raise capital from fund holders by issuing
trust products;
Second, trust investment companies
inject funds in real estate companies
through equity investment;
Third, trust investment companies
obtain equity in the real estate companies
(such equity is similar to preferred
stock, meaning having no rights to
make decisions on routine operation,
personnel appointments, but have rights
to know, veto, make suggestions and so
on);
Fourth, trust investment companies
entrust holding equity to original
shareholders, and sign equity repurchase
agreements with the original
shareholders and affiliated parties (in
order to ensure the buyback, both sides
need to have guarantees);
Fifth, real estate companies operate
the development projects, and obtain
cash flows.
Sixth, affiliated parties (or the
original shareholders) get funds from
real estate companies, and repurchase
equity. The trust financing process is
over.
This mode can increase real estate
enterprises’ capital fund, helping them
meet the requirements of bank financing.
Trust companies’ equity financing
only requires a reasonable return in the
set time period, not a share of profits,
so that real estate companies can solve
financial problems, while keep control
of the project.
(3) Transactional trust products
This trust plan can bring a return
as high as 6% to investors, but with
more intermediate operations and low
liquidity, which matters most.
Judging from future development,
the diversification of trust investment
products is vital to trust products,
and also is an important trend for real
estate trust financing. There is great
potential for China real estate trust
financing.
c. Asset Securitization
Asset securitization is the financing
method with the most potential.
Real estate securitization as an
innovative financing method emerged
in 1950s in the United States. In late
1960s, real estate securitization mode in
the United States and other developed
countries gradually matured. In 1968,
the United States Federal National
Mortgage Association was renamed to
Federal Housing Loan Mortgage Company,
and set up Government National
Mortgage Association. Based on these
two institutions, the United States creatively
carried out residential mortgage
loan securitization: the two institutions
mentioned above undertake all the
mortgage loans by financial institutions
for residential purchase, then through
legal ways issue bonds to turn the creditor’s
rights on the loans into cash, repay
the financial institutions by buying
rights on the loans, to accelerate relevant
financial institutions’ capital flow to provide
new loans to homebuyers.
IV Conclusion
Under the background that national
economy maintains high growth
rate, social reform speeds up and industries
have a promising future, Real
estate enterprises are facing opportunities
for development and various
financing choices, each with advantages
and disadvantages. For most real estate
enterprises, bank loans are still a
conventional choice, so it should not be
given up; individual entrusted loan has
potential to expand the scale, so it is
worth trying; trust financing is getting
popular in recent years and has developed
many flexible financing modes, so
it should be paid more attention; asset
securitization with a promising future
should be watched and investigated as
soon as possible.
Author: From Xi’an Chang Qing
Properties Group Co., Ltd., Xi’an
Shaanxi, 710006
58

The Influence of Expressway on
Social and Economic
Development
By Li Peng
摘 要 : 随 着 高 速 公 路 的 快 速 发 展 , 高 速 公 路 与 社 会 经 济 发 展 的 关 系 日 益 密 切 。 通 过 详 细 的 资 料 和 数 据 阐 述 高 速 公 路
与 社 会 经 济 发 展 的 关 系 , 分 析 高 速 公 路 对 社 会 经 济 发 展 的 影 响 。
Abstract: With the rapid growth in length of expressway, there is a closer relation between expressway and
social and economic development. Through detailed statistics and data, the paper explains the relationship of expressway
and social and economic development, and analyzes the influence on social and economic development.
关 键 词 : 高 速 公 路 ; 社 会 经 济 ; 发 展 ; 影 响
Keywords: expressway, social and economic development, influence
As global economic integration
accelerates, and social
and economic development
in China maintains at high
speed, the total length of expressways
in China also grows quickly, and the
road network improves continuously.
Especially in recent decades, with a
boom in expressway construction, the
total length in China now reaches
25,000 km, ranking the second in the
world. Length of expressway is an important
indicator of and a significant
driving factor for a country’s economic
development, as they can provide
crucial foundation and guarantee for
resource, tourism, industry, urban and
rural development along the expressway,
and have a profound influence to
regional economy.
I Expressway promotes
economic development of
areas
Expressway encourages industrial
and tourism development along
the line.In 1980s, the contribution of
expressway to economic and social development
was obvious, and attracted
attentions of various governments, encouraging
construction projects of ex-
pressways. Till 1995, the traffic mileage
came to 2141 kilometers. Before that,
the built mileage each year was no more
than 500 kilometers, averaging 270 km
per year or so in the initial phase of expressway
construction. Since 1998, the
central government had implemented
proactive fiscal policies, strengthened
the investments in infrastructure and
implementation of West Development
Strategy, bringing expressway construction
in China into a booming period,
with built mileage per year to over
3,000 km. By the end of 2001, the total
length of expressway in China reached
19,437 km, averaging near 2,900 km
per year in six years from 1996 to 2001.
To achieve modernization of
the final target for national economic
development, in 1998 the Ministry of
Communication set up a three-step
development plan for transportation
modernization by mid 21st Century.
By 2020, expressway traffic basically
meets the needs for national economic
development, and the eastern region
completes phase two of modernization
plan. In 2001, the ministry completed
planning for national arterial expressway,
which is targeting at 71,000 km
of national key roads by 2020, which
together with national trunk road
to form a 100,000 km national road
network skeleton, including 55,000
km of expressway that basically forms
national expressway network. Skeleton
road network will cover more than all
these cities with a population of over
500,000, and 95 percent of cities with
a population of 200,000 to 500,000,
meaning total population coverage of
900 million or so.
It is learned from the experiences
from foreign countries that in 3 to 5
years’ operation of an expressway the
cities on both sides will extend along it
and a series of economic development
zones will establish around the entrances
and exits, and an “economic corridor” or
a “channel economic zone” taking the
expressway as axes will be formed.
Scotland Electronic Industry
Center in UK, California Silicon Valley
High-tech Industry Zone and Boston
128km High-tech Industry Region in
USA are all located near expressways.
There is data reveals that 40% new
factories in Japan were established no
more than 10km away from expressway
entrances and exits and more than
50% within 20km. After the completion
of Nagoya to Kobe Expressway,
59

just around the 14 overpasses on the
expressway, there were more than 900
new industrial enterprises emerged in
10 years.
In China, along Tianjin Expressway
and around the links to cities there
have been implemented several projects
like Beijing Technology Development
Zone, International Logistics Center,
and Yongle Garden High-grade Residence,
etc. After Badaling Expressway
got through, XiSanQi High-tech
Construction Material Market sees an
increase of 100 million RMB in fixed
assets each year, and New Technology
Industrial Development District
had an increase of 450 million RMB
in fixed assets in the same year. As to
Guangshen Expressway, it boosts the
development of hi-tech industries. Taking
Shenzhen for example, the production
value of high-tech industries in
1993 increased by 10 times from 1988,
and 64% higher in 1994 from a year
ago, amounting to 18.8% of the whole
industrial production value, taking a
lead in the country.
In 1990, the first standard highway
in Mainland China — Shenyang —
Dalian Highway completed and opened
to traffic, which was 375 kilometers
long and cost 2.2 billion RMB, with 4
lanes going through Liaodong peninsula.
Shenyang - Dalian Highway was
resulted from the needs of economic
development in Northeast China and
the geographical location of Liaoning.
Liaoning Province is one of the heavy
industry base in China, the doorway
of Jilin, Heilongjiang and Eastern Inner
Mongolia for goods and material
supplies, and also a marine gateway in
Northeast China to Eurasia and foreign
trade. Shenyang-Dalian Highway connects
Shenyang, Liaoning, Anshan,
Yingkou and Dalian 5 industrial cities,
links two city agglomerations in coastal
areas around Dalian and in central
Northeast China around Shenyang,
and cuts the distance between the gateway
and the production base. Along
the highway gathers 90% large and
medium-sized backbone enterprises
in Liaoning province and 2/3 of urban
population and fixed assets, which
forms a prosperous economy corridor.
Without modern highway transportation,
this seems impossible.
In 1980s, Langfang Province near
an exit of Tianjin Expressway was still a
backward prefecture level city in Hebei
Province. With the completion of Tianjin
Expressway, the distance from Beijing
and Tianjin to Langfang was shortened,
and logistics and passenger transportation
industry in Langfang rapidly develops.
In 1992, Langfang established an
economic and technology development
zone along Tianjin Expressway. Under
the radiation and driving of Beijing and
Tianjin, the economy and technology
development zone attracted 411 projects
including 24 over 100 million RMB
projects, realizing 5.575 billion RMB
of fully funded capital and accumulative
financial revenue of 143 million RMB,
up by 88.6% per year in average. Among
them, foreign investment projects take
52.2%, and actual use of foreign capital
totaled 220 million dollars. Now, Langfang
is attractable to both domestic and
foreign investors, and becomes a promising
golden area in Beijing-Tianjin region
for investment.
In November 2000, Xinjiang
Urumqi-Kuitun high-graded highway
completed and opened to traffic, attracting
a large number of mainland
Chinese investors. In KuiTun economic
and technology development zone, a
businessman from Jiangsu Province invested
50 million RMB to build Western
International Trade Center, which
has 300 plus merchants. Because of
Urumqi-Kuitun high-graded highway,
Kuitun as a commercial center becomes
more prominent, inducting Tongyi,
Wahaha, Yili, Wangwang, Yanjing and
other enterprises to Shihezi Development
Zone, and driving economic development
in neighboring areas.
Expressway stimulates the development
of high technologies. The
distribution of industries along expressways
in these years in China clearly
demonstrates this, such as electronic
information, electromechanical, new
material, new energy, biological engineering
technology and industries alike
are most located near highway entrances
and exits, forming industrial parks.
MITI of Japan had a survey in 1974-
1981 on site selecting of 978 enterprises
in six high-tech and new industries
of communication equipments, electronic
application equipments, electrical
measurement instruments, electronic
instruments and parts, medical appliances
and optical instruments, which
showed that: 23% of enterprises of electrical
measuring instruments preferred
sites no more than 10 km away from
entrances and exits of highways, and
40% to 60% of other five industries,
while 49% of electrical measurement
instruments chose sites within 20 km,
and 70% of other five.
II Expressway construction
improves rural economic
strength
With the rapid development of
expressway, regional economies are
strengthening, cities gradually expend,
and links between urban and rural areas
get closer. With an increasing level
of agricultural mechanization, a larger
rural population turns to non-agricultural
industries, filling the gap between
urban and rural areas.
Adjustments in national macro
economic structure, regional planning,
special zone development, and
economic and administrative policies
on private and public sectors all have
a direct inf luence on formation and
development of urban and rural fringe
area. Along with the development of
expressway, gap between urban and
rural regions are narrowing, the economic
relationship are strengthening,
forming an industrial structure that
rural agriculture boosts urban industrial
development, rural industry and
urban industry cooperate under the lead
of cities. In rural area, industries like
textiles, food processing, building materials,
construction and so on can serve
urban development, and thus speed up
rural social and economic development,
and the formation and development of
regional economy in urban-rural fringe.
Such close cooperation requires support
from highways, while highway provides
a powerful guarantee.
Zhangjiakou was economic backward
city in Hebei Province for long,
but this city develops along with reform
and opening-up policy and highway
construction, with the economic
situation getting better and economy
keeps stable and improves. In 2000,
Zhangjiakou had a GDP of 24,319.3
billion RMB, 5318% higher from 1995,
60

the end of 8th Five-year plan, and 5,460
RMB of per capita GDP and 1,712.2
billion of financial revenue, up by 412%
per year in average on comparable basis.
In 1999, the investment in fixed
assets in Zhangjiakou kept growing,
and key construction projects moved
on smoothly, while the city completed
total fixed assets investments of 7,218.8
billion RMB, having a year-on-year
increase of 1104%, including 5,918.7
billion RMB of local investments, up
by 2613%. Among the total fixed assets
investments, 5,412.7 billion RMB was
from state-owned units, 1,111.9 billion
RMB from collective units and 714.2
billion RMB from individual investors.
Among the completed investments
of state-owned units, basic construction
took 3,811.6 billion RMB, up by
22103% from a year ago, real estate development
took 312.7 billion RMB, up
by 21156%.
Expressway cuts the storage and
transportation time for agricultural
products, accelerates product circulation
and exchange of agricultural information,
and further boosts the scale operation
and intensive production. For example,
Tianjin Expressway is helpful to
the exchange of agricultural and sideline
products between Beijing and Tianjin,
encouraging the planting and marketing
of fresh vegetables and rare flowers.
Beijing-Shijiazhuang Expressway
boosts the agricultural development and
regional advantage upgrade in Baoding
region on one hand, making Dingzhou
and Dingxing two counties famous
vegetable logistics centers in North
China for both Beijing and Tianjin.
On the other, this expressway provides
transportation support to township
enterprises for the exchange of information,
material and talents, bringing
them into a period of fast development.
For example, at the end of 1996, there
were 509 township enterprises in Shijiazhuang
with an operating income
exceeding 10 million RMB, 20 ones
with an income of 100 million RMB,
and 24 ones listed among national large
and medium-sized town enterprises.
In 1996, agricultural income per capita
in Shijiazhuang came to 2,502 RMB,
3.24 times of that in 1992 without the
expressway. Among the top 100 towns
in Hebei province, there were 38 in
Shijiazhuang.
The construction of an expressway
is a process of balancing urban and rural
development, regional development and
overall economic and social development,
and also a process of planning for
expressway, trunk and rural road construction,
which plays an important role
in accelerating the development of transportation
in rural and under-developed
areas and promoting urbanization and
industrialization. Expressway can correct
urban development divide and promote
urban and rural integration, by involving
cities and countryside into the economic
structure of “cities pulling counties and
urban-rural integrating”, strengthening
the communication between cities and
countryside, increasing farmers’ incomes
and finally realizing rapid development
of urban and rural areas.
III Expressway drives regional
economic aggregation
Expressway can promote regional
economic development, while drive
regional economic aggregation, and
gradually transform labor-intensive
industries into capital and technology
intensive industries.
Experiences from global economic
development show that: industrial
structure will always be in dynamic
evolution during national or regional
economic development. Although different
countries and regions differ in
industrial characteristics and industrial
composition, the evolution of industrial
structure follows a general rule, meaning
with the development of economy
and increase in national income per
capita, labor will gradually move from
the first industry to the second industry
and then to the third industry. In terms
of requirements or intensity of various
industrial department of national
economy on production factors, labor
intensive industries would transform
into capital and technology intensive industries.
In course of road development
history of various countries, they all
experienced the process of conventional
road to expressway and trunk road to
high grade highway network, and the
economic and industrial structure basically
followed the rule. Accordingly,
the construction of expressway network
greatly stimulated the aggregation
regional economy, and accelerated the
development of regional economy along
surrounding.
On December 22nd 2007, south
line of Jiqing Expressway was formally
opened to traffic, marking a large-sized
expressway economic development
zone that will greatly inf luence the
economy of Shandong peninsula, Jiqing
Expressway Economic Zone belt
--formed. North Line is just less than
100 km from south line in average,
and through trunk road connections,
the two lines form convenient and
quick road transportation net. Jiqing
Expressway brings the most active
economic zone in Shandong Province,
and together with Jiliao Expressway,
Beijing-Shanghai Expressway, Tongsan
Expressway, Huailai Expressway and
other high-grade roads realizes interconnection
and interaction of economic
development in northern Shandong
Province. Jiqing Expressway’s open to
traffic would enhance the economic
relation among surrounding regions,
driving the economy in mid-western
part of Shandong Province to develop.
Township enterprises have already
been an important force in the modernization
construction in China, and also an
indispensable driving force in the industrialization
process, whose development is
dependent on expressway transportation.
In Yangtze River delta and Pearl River
delta where township enterprises have
a good development, various economic
elements gather along the expressway,
clearly demonstrating this view.
The rapid development of expressway
can ease traffic congestion,
and also brings enormous economic
and social benefits, contributing to the
development of national economy in
China. At present, expressway has covered
28 provinces and cities, and gradually
evolves towards modernization,
networking, informationization and
intelligence. Meanwhile, the influence
of expressway on economic and social
development is getting more and more
profound.
Author: From Fukang Toll Station
of Kaziwan Administrative Office,
Xinjiang Traffic Construction
Administration Bureau, Urumqi, Xinjiang
830021
61

Technology
G-8 Leaders
to Call for Tighter Internet Regulation
PARIS — Leaders of the Group of 8 industrialized
countries are set to issue a provocative call for stronger
Internet regulation, a cause championed by the
host of the meeting, President Nicolas Sarkozy of
France, but fiercely opposed by some Internet companies and
free-speech groups.
The G-8 leaders will urge the adoption of measures to
protect children from online predators, to strengthen privacy
rights and to crack down on digital copyright piracy, according
to two people who have seen drafts of a communiqué the
G-8 will issue at the end of a meeting this week in Deauville,
France. At the same time, the document is expected to include
a pledge to maintain openness and to support entrepreneurial,
rather than government-led, development of the
Internet.
This balancing act was reflected Tuesday in a speech by
Mr. Sarkozy, who convened a special gathering of the global
digerati in Paris on the eve of the G-8 meeting. Calling the
rise of the Internet a “revolution,” Mr. Sarkozy compared
its impact to that of two previous transforming episodes in
global history: the age of exploration and the industrial revolution.
The Internet revolution “doesn’t have a flag, it doesn’t
have a slogan, it belongs to everyone,” he said, citing the recent
uprisings in the Arab world as examples of its positive
effects.
Before an audience that included top executives of some
of the world’s largest Internet companies, including Google,
Facebook, Amazon and eBay, he added, however: “The universe
you represent is not a parallel universe. Nobody should
forget that governments are the only legitimate representatives
of the will of the people in our democracies. To forget
this is to risk democratic chaos and anarchy.”
The pre-Deauville meeting in Paris, called the E-G8
Forum, is providing a public window into the debates that
have shaped the expected G-8 communiqué, in addition to
serving as a soapbox for Mr. Sarkozy as he gears up his campaign
for re-election next spring.
Mr. Sarkozy’s push to turn Internet governance into a
G-8 issue, elevating it to the level of more traditional topics
like trade, currencies, terrorism or climate change, has been
applauded by companies in industries like music, which have
been ravaged by digital piracy. But it has drawn concern from
Internet companies and outright criticism from some people
who see a threat to the openness that has characterized the
Internet to date, at least in most Western societies.
During a panel discussion Tuesday, Yochai Benkler,
faculty co-director of the Berkman Center for Internet and
Society at Harvard University, told Finance Minister Christine
Lagarde of France that he thought the French approach
to online copyright protection was “the wrong way to go.”
“You can make the Internet safe for Lady Gaga or Justin
Bieber, or you can make it safe for the next Skype or You-
Tube,” he said, asking her to relay that message to the G-8
leaders in Deauville.
Ms. Lagarde promised to do so, but added that she
thought the rights of content owners and Internet companies
could be reconciled.
A draft of the communiqué dated May 20 states: “Governments,
the private sector, users and other stakeholders all
have a role to play in creating an environment in which the
Internet can flourish in a balanced manner.
“In Deauville in 2011, for the first time at Leaders level,”
the communiqué continued, “we agreed in the presence of
some leaders of the Internet economy, a number of key principles,
including freedom, respect for privacy and intellectual
property, multistakeholder governments, cybersecurity, and
protection from crime, that underpin a strong and flourishing
Internet.”
Mr. Sarkozy is not alone in calling existing laws and
regulations inadequate to deal with the challenges of a borderless
digital world. Prime Minister David Cameron of
Britain said this week that he would ask Parliament to review
British privacy laws after Twitter users circumvented court
orders preventing newspapers from publishing the names of
public figures who are suspected of having had extramarital
affairs.
But France has gone further than many other Western
countries in pushing for what Mr. Sarkozy has called
a “civilized Internet.” Among his initiatives are a so-called
three-strikes law that threatens persistent digital pirates with
the suspension of their Internet connections. Another new
French law authorizes the government to filter out Web sites
containing illegal content like child pornography.
The G-8 communiqué is not expected to contain specific
prescriptions like these. Instead, it will include broad
pledges to deal with privacy, piracy and child protection, the
people with knowledge of the talks said. (New York Times)
62

Facebook is developing features that
will make the sharing of users’ favorite
music, television shows and
other media as much a part of its
site as playing games or posting vacation
photos.
The company is in discussions with
several online music services, including the
European company Spotify, to develop a tab
or widget that would display a user’s mostplayed
songs and provide an easy way for
friends to hear them.
Facebook wants to do the same for
other kinds of media, like video and news,
said these people, who spoke only on condition
of anonymity because the talks are
confidential.
Facebook, which has nearly 700 million
users, would not comment on its plans.
But analysts and media executives said the
company’s move into media was part of its
ambition to become a hub for all types of activities
on the Internet. And as the company
sees it, people increasingly define themselves
through the media they consume, they said.
In a statement, Facebook said, “We’re
always looking for better ways to help
people discover the most relevant content on
Facebook but have nothing to announce.”
With media highlighted as a permanent
and highly visible part of a user’s
profile page, the company hopes to replicate
the success it has had in becoming a top
destination for games in other forms of entertainment.
Mark Zuckerberg, Facebook’s
chief executive, hinted at the company’s
plans during a presentation at the eG8 technology
conference in France this week.
“Listening to music is something that
people do with their friends,” Mr. Zuckerberg
said. “Music, TV, news, books, those
types of things I think people just naturally
do with their friends. I hope we can play a
part in enabling those new companies to get
built, and companies that are out there producing
this great content to become more
social.”
Facebook has long worked to spread
its tentacles across the Web, and to persuade
media companies to use its data
about connections between people to make
their services more “social.” In France, Mr.
Zuckerberg mentioned Netflix as one of the
companies that had been in talks with Facebook.
Several music services, like Spotify
and Pandora, already allow users to log in
with their Facebook credentials, and they
personalize their sites for users based on
the activities of their friends. But Facebook
wants to make it easier for users to tap into
those activities on its site.
According to the people involved in
the negotiations, Facebook’s various media
partners would each have a part in a continuous
feed displaying the songs a user is
listening to or the video a user is watching.
Friends could then gain access to the same
content with a click. By using outside partners,
Facebook itself would not license any
content from record companies or television
networks.
Facebook is known for tinkering with
products until they are ready, and the features
of Facebook’s new services for music
and other media could change before they
are released.
The effort could pay off in a big way if
Facebook succeeds in devising features that
would allow its members to pay for access to
third-party music services using its online
currency, Credits, said David Kirkpatrick,
the author of “The Facebook Effect.”
“Music could be a gold mine, just like
games have been a gold mine,” Mr. Kirkpatrick
said.
Reports of Facebook’s talks with Spotify
have surfaced repeatedly on technology
blogs, leading to speculation that Facebook
would work with the service to create a music
channel. But people with knowledge of
Facebook’s strategy say the company never
wanted to tie itself to a single music service,
preferring instead to work with multiple
partners.
Spotify, which is available in seven
European countries, has been in talks with
major record labels for distribution in the
United States. It already has Facebook connections:
Sean Parker, an early Facebook
investor, is also an investor in Spotify.
Jim Butcher, a Spotify spokesman,
said, “We’re continuously working together
to make the social experience on Spotify
the best it can be and welcome relationships
with any company looking to innovate by
building more social value into the user experience.”
Last year, Facebook negotiated with
Apple about bringing social features into
iTunes. But the talks broke down and
Apple created its own social network within
iTunes, called Ping. It has not become popular
with users. (New York Times)
Facebook
Is Developing Ways to Share Media
63

Mr. John Gong:
From a student who traveled across the ocean
to have further study in the U.S., with only
53 dollars in his pocket, to the founder of his
own business in the U.S.; from studying the
artificial intelligence, to manufacturing high-tech
robotics products including satellite tracking system,
macro wave brake system and other high tech systems.
He is Mr. John Gong, Chairman of American ICP
Inc. and President of To Pacific Inc.
At age of 48 now, John is still working diligently
and tirelessly in research and development of everchanging
science and technologies, and pursuing his
next dream.
Also, Mr. Gong serves as Vice Director of the
Council of China’s Foreign Trade, Executive Vice
President of China Economic Trading Promotion
Agency, and also Chairman of their Los Angeles
branch.
Years of difficulty and struggle, Breaking arm
to show lofty ideals
John was born in a well educated and entrepreneur
business family. His paternal and maternal
grandfathers are both widely well known in the business
circle in Shanghai, and parents are both intellectuals.
However, this once happy family was suffered
from great trauma and was shattered into pieces with
the sudden advent of the Cultural Revolution, which
changed the track of his journey in life.
At the beginning of the Cultural Revolution,
By Richard Zhu
A Devoted Seeker of Science and
Technology Innovation
John’s family was confiscated all their properties. At
age of two, John was sent to a full service kindergarten
which his parents only could pick him up during the
weekends.
His father suffered from heart attack, fell sick
from overwork and died young. His mother was
forced to send to the countryside to work and denied
the chance to even say goodbye to her son. For a consecutive
five weeks, little John had no one to take him
home.
Luckily, there was a kind Aunt Wang working in
the kindergarten, who served as “temporary mother”
and provided the shelter and food for little John. Aunt
Wang’s un-selfish and kindness gave him the warmth
of life and a beam of hope in his desperation, which
moulds John into a philanthropist who dedicates himself
to helping people in need.
Little John survived the years of hardship. At
that time, his dying father was hospitalized, and his
mother had to go to work, otherwise the whole family
would get nothing to eat.
The mother had to keep this four-year old John
locked in the room, leaving only a little food and water.
The cry of her son due to horror and loneliness
broke the mother’s heart, but she had no other options
but to go and to make money for the entire family.
When John became tired from crying, he would
eat some cold food to relieve hunger. Being locked all
day long, John would either take a nap in the corner,
or fell asleep with his arms on the window sill.
Granny Qiu, who was neighbor of Gong’s family,
took pity on the poor little kid and freed him to play
using the keys borrowed from John’s mother. Those
tough years remained fresh in John’s memory even
today. It inspires him to stand out among the people,
65

and returns with the generosity and assistance
to those people in need.
When he grew up to ten, John
was bullied and chased on the street
by other kids because John’s family belonged
to the “Five Black Groups”, and
his left arm got broken. The careless
doctor made a mistake in setting the
bone fractures, which might leave him
lifelong disabled.
After experiencing bitter sorrows
about separation and death, little John
had grown into a real man this time
and asked the doctor to break his arm
and reset the fracture without getting
permissions from his parents.
John vowed that this beating
would be his last. He determined to
learn marshal arts from Kung Fu masters
to defend himself and to help the
weak. Later on, he also became a Kung
Fu master. Many times, he saved those
weak people from being bullied by local
gangsters.
Study overseas and research on
robots
After graduation from the Shanghai
University of Technology in 1985,
John went to US for his further study
and wanted to earn his name in the
technology field.
With only 53 dollars in his pocket,
John was successfully admitted into
George Mason University and George
Washington University, in which he
chose Robotics and Computer Science
majors for his
master degrees.
During
each semester he
took 3 graduate
courses and also
worked part time
in a restaurant to
earn his tuition fees.
John had to earn his
income only through
guest tips, because the
boss told him that he
could not pay John because John did
not have green card or working permit.
During this rough time, for numerous
times, John almost quit his
dream and came back to China, but the
remembrance of his miserable childhood
and also the strengthening of his
confidence helped him face these difficult
challenges by his own.
With the great help from his elder
brother and also his own gifted talents,
he acquired both master degrees in
Robotics and Computer Sciences with
GPA of straight A, a perfect score.
When he later studied for his doctor
degree in the prestigious Stanford
University in California, Mr. Gong was
hired by the TI Corporation, where
through several years’ hard work, he
transformed himself from a professional
technical engineer to a sales manager,
and then to the senior executive of the
Group.
He once served as Western Region
General Manager for Matsushita
Group in US and Asian Pacific General
Manager for ENTIVITY Inc. in US,
in charge of the entire Asian Pacific
business, from Russia to Australia.
At age of 37 in 2001, Mr. Gong
founded American ICP Inc., a hightech
company dedicated to manufacture
automatic control system and robotics
systems.
Most intelligence robots in the
world today are still in their first-generation
technology, with their novice
thinking pattern. They can only follow
the instructions given by the human
being, and make simple judgments according
to the probability and database
materials.
Now some developed countries are
doing research and
development on
the second-generation
robots, whose
begin to think as
the children do and
can make certain
complicated decisions
based on the
complicated logical
analysis.
In the next
decade, the upcoming
threegeneration
robots will have the thinking
capacities of the young people and
will have self learning capabilities with
some complicated fuzzy logics control
and sophisticated mathematics calculations.
But no matter how developed
the robot will be, it will never totally
replace the human being including
thinking, emotions, love and desires.
John’s Mercedes Benz S550, the new
model in 2010, only adopted a tiny part
of John’s research results 25 years ago.
Besides, John’s high-tech company
has also made great breakthroughs in
researches on intelligent robot, satellite
tracking, collision warning system and
Marco wave brake systems. Even US
Defense Department came to John asking
for specially designed robots used
in underwater maintenance of nuclear
powered submarines.
The most challenge to underwater
repair work of the nuclear submarines
is from the high water pressures, which
makes people unable to come out of
the cabin. But the robot can finish such
work with great proficiency. If there
were robots available, the Soviet Union
nuclear submarine accident which had
claimed more than 100 casualties might
be saved.
Also, in the real life, in many
cases, the policemen’s guns are often
taken by the gangsters during the fight
or get stolen, the gangsters will use the
policemen’s guns to shot the policemen.
John’s Smart Gun team also developed
a smart gun which can detect the gun
users’ fingerprints instantaneously, in
which case the gun stealers can never
fire the bullet out.
The satellite risk assessment equipment
they had developed can calculate
the vehicle moving tracks and the surrounding
road conditions with great
accuracy, and can work out corresponding
solutions beforehand to eliminate or
reduce the chance of traffic accidents.
Now John’s company has a team
of high-tech talents, who represent the
cutting edge technology in our time
and the highest standards of the world.
In China, the mine disasters are claiming
huge casualties each year, while the
super conduct sound wave robots can
detect changes in the surrounding environment,
and can well prevent the mine
disasters.
The remarkable intelligence of robots
is more and more popular among
children, and each year countless robot
contests have been held around the
world. The robots, for the most of time,
win the first place during the chess
tournament with chess masters and
even world champions would be de-
66

feated. The kids adore these robots very
much.
Having been living in the U.S. for
more than 25 years, Mr. John Gong
also owns high-tech software company,
international e-commerce business
trading company, real estate company,
health product company, and chain
restaurants. His automation
control company has extended
its business across the border,
with its market in North and
South America increasingly
prosperous. The superior technology
breeds flagship brands.
Recently Mr. Gong and
several large Wall Street Investment
companies established this
new company called To Pacific
Inc. Mr. Gong is appointed to
be President of the company
with its headquarter in Los
Angeles, the United States of
America.
This company mainly
focuses on its full service of e-
commerce international business
between China and US.
This platform will reduce costs for all
the buyers and the consumers around
the world with a direct F2C sales
model.
To Pacific Inc. has become the
main bridge to link the buyers and the
sellers together from all over the world,
and to link the on-line e-business and
the chain stores in one platform. It also
provides the full sales and marketing
services for Chinese companies in US
including on-line orders, local customer
services, local showrooms, local
warehouse, transaction guarantee, legal
proceeding, accounting services and
many others which enables Chinese
companies’ selling products easily and
more cost effectively in US. It promotes
“made-in-China” products around the
world.
A family of technology, Serve for
the charity
Having established highly-reputed
enterprise group companies in US, Mr.
John Gong also has won more praises
and admirations through his charity
work after being successful.
In US, John has two elder sons
and a 9-year-old daughter, and a lovely
wife devoted to be a full time mother
and a full time house wife. Under his
influence, the whole family is fans of
technology.
His daughter is crazy about robots
and has served as a young model appearing
in several major advertisements
in US. His 16-year-old younger son,
who is now a junior high student, also
develops great interests into robots with
his father’s influence.
Even finished several national
research projects and recently got an
international patent of “wireless electricity
transmission”. Using such a
patented technology, people don’t need
to use the power lines to charge their
mobile phones, or lighten the bulbs and
any other electronics devices any more.
These will be wirelessly charged from
one source in the room or in the building
or even in the local area.
Two years ago, the younger son
lead his team to participate in an US
Robot Contest and won the second
place, just behind MIT, which made
his father very proud, because the hardware
they used in this robot deign is
provided by his father’s company.
John encourages his children to
develop their talents and their hobbies
in many different fields. His younger
son, who is playing the first violin in local
orchestra and won many times Los
Angeles Violin competitions, always
performs in charity work with his sister
in the community, invoking benevolence
and affection with the beautiful
violin sound, and offering the contributions
to the charity.
His elder son had won many tennis
open tournaments in US, won the
first place in the martial arts contest
sponsored by Disneyland in 2006, and
won many first places in Los Angeles
chess tournaments from 2006 to 2007.
In 1997, Mr. Gong became
Chairman of the education
department of ISA in Orange
County, which has more than
50000 members worldwide, and
then was elected to be President
of ISA in Orange County. Most
members in this association are engineers
and professional managers,
which are quite influential people.
Besides, Mr. John Gong also
is an active key member in many
business associations including
Rotary Club International and Lions
Clubs International. He takes
charity as part of his career.
When Wenchuan Earthquake
Disaster happened in
2008, Mr. Gong took the lead
in donations. He would never
forget those assistances that helped him
go through the most difficult years in
his life, and also his parents’ conduct of
kindness.
Now Mr. Gong is planning to
establish a foundation, which would
render assistance to children suffering
from leukemia in China.
Mr. Gong has concluded his lifelong
perception: You have a choice for
everything, but every choice leads to a
result. You should be brave to shoulder
responsibilities for the results and try
not make a wrong choice; you may get
lost but you will never lose your goal
and your focus; there is no shortcut to
success, but diligence and hard work
are preconditions for success; the wealth
belongs to the whole society and we are
just temporary managers in charge of
managing this wealth.
As a reputed business leader in
US, a representative figure in high-tech
field, and also a philanthropist whose
story moves China and US, Mr. John
Gong is still striving to his next higher
goal. He also hopes that the robots can
one day find its way into the consumer
market and serve each family with an
affordable price to everyone.
67

Foreign-branded Seeds Seek
Expansion
in China
By Zhu Zijun
As the Chinese saying goes, “Food is the first necessity of the people.” As for food,
seeds are the first necessity. Nowadays, foreign seed firms are seeking more expansion
in Chinese market to meet the China’s growing demand, posing great threat to
domestic firms.
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.
68

Pioneer Hi-Bred International Inc, one of the world’s
largest seed companies, will establish up to three new production
plants and two new joint ventures (JV) in China in
the next five years to meet the country’s growing demand for
corn, William Niebur, vice-president and general manager in
China, was quoted as saying by China Daily.
“For DuPont’s agricultural business, the Chinese corn
market is the most exciting and important new growth opportunity
in the world today, and we are very optimistic
about the future,” he added.
This is not the unique case. Earlier this year, Yuan
Longping High-Tech Agriculture, a domestic leading seed
firm, announced the signing of a frame agreement with
Vilmorin Hong Kong Limited, a subsidiary of the world’s
seed giant Vilmorin & Cie, to set up a corn seed joint venture
(JV).
In 2002 and 2006, US
seed giant DuPont set up
two JVs with two domestic
seed firms. In 2007,
VHK entered. Analysts
said all the global five
largest seed giants, including
Syngent, have
set up JVs in China,
Global Times reported.
Foreign seed
giants’ penetration
in to the domestic
seed market is
not groundless.
Zhou Siran, the
food industry
researcher from
the CIC Industry Research
Center based in Shenzhen,
attribute that to the following reasons:
First of all, the huge market space in China is the
most critical factor. Such great market means great value.
Second, huge profit is a key driver for their expansion in
Chinese market. With the help of their high quality, foreign
seeds are priced higher than domestic ones, thereby ensuring
the seed firms’ considerable profit and cushioning profit margins.
Third, domestic seed firms’ relatively competitiveness is
another important factor for foreign firms’ entrance in succession.
At present, the top ten domestic seed firms account
for only 13% of the market share in China. This has created
golden opportunities for foreign firms.
Foreign brands’ soaring influence
Currently, there are 35 foreign seed companies in China.
Though the number of them is not that large, these firms’
competitiveness can not be underestimated.
Report shows that foreign-branded seeds have grabbed
over half of the vegetable market, almost covering all vegetable
varieties. Apart from vegetables, foreign seeds have
expanded to soybean, corn, wheat, flowers and plants, etc.,
gradually leading to their monopolization in the market with
their 80 percent of the market profits.
Apart from actively grabbing the market share, transnational
seed giants have been penetrating the seed industry,
or control quality domestic firms through acquisition, hence
squeezing their living space.
While, on the other hand, the Chinese seed industry,
which did not become market-oriented until 2000, is still
at its primary stage. That means China has only 10 years of
experience in the market economy. Domestic firms still lag
behind foreign ones, in terms of variety innovation, competitiveness
and seed supply. The overall low-level in the seed
industry can not well meet the needs of modern agriculture’s
development.
China currently has
more than 8,700 approved
seed companies, but the top
10 of them only account for
13 percent of the market
share, far less than 37 percent
of the top 10 foreign
seed firms in China.
Report shows that
in Shouguang City,
home to vegetables in
East China’s Shandong
Province, foreign
seeds occupy
half of the market,
with over 70 percent
of the greenhouses
there in use
of foreign seeds.
During the 12th China (Shouguang)
International Vegetable Sci-tech Fair, held from April 20
to May 20, our reporter had the opportunity to view various
foreign-branded vegetables, like tomatoes, eggplants, cucumbers,
etc. It seems that these foreign brands showcased at the
fair, unique in their features, have equal shares, if not more,
with domestic ones.
Pioneer Hi-Bred International Inc is one of the foreign
seed companies in the corn market. Since it launched the first
corn variety in China — Xianyu 335 in 2005, it has took up
10 percent of the planting acreage of corn, arousing concerns
over foreign seeds’ increasing dominance in the market.
In 2010, the US company has increased the area under
Xianyu 335 corn seed cultivation to 40 million hectares.
The company’s expansion has raised eyebrows as it is fast approaching
the 60 million hectares under Zhengdan 958, the
biggest domestic corn seed. Now China has a total corn sowing
area of around 450 million hectares.
That has caused great concerns in the industry. Analysts
worry that once foreign investment moves to field-crop
plants like corn and rice, posing threat to agricultural safety.
Agricultural experts warn that domestic seed companies
need to wake up to the threat and build necessary safeguards
to retain their market share.
69

Still others feel that though foreign seed companies
have a presence in China, they are dominant only in the supply
of non-staple seeds like tomato and pepper and hence not
a major threat to food safety.
Out of 35 foreign seed companies in China, five supply
corn seeds, while the rest are involved with vegetable and
flower seeds. They have a limited market share in the staple
seeds market especially in grains like wheat, corn and rice,
China Daily reported, citing Xu Xiaoqing, a rural economic
expert with the Development Research Center of the State
Council.
That means the situation is not that bad when it comes
to other staples like wheat and rice where domestic companies
still have a sizable lead over foreign players.
Government data shows that the nation’s total grain
harvest was around 500 million tons last year, with corn accounting
for 155 million tons.
However, in recent years, China’s demand for corn has
surged significantly, due to the booming developments in the
processing and livestock-breeding industries.
In 2010, China’s corn imports soared by a staggering
17.6 times year-on-year to 1.57 million tons, according to
data from the General Administration of Customs.
Foreign seeds’ competitive edge
Foreign seeds have gradually gained a foothold in China,
edging some domestic firms out the market. How can
they make this happen?
Many farmers believe foreign seeds have high quality
and sells well in the market, as clients tend to trust them.
The farmers in Shouguang would like to purchase foreign
seeds, despite their higher price, as they believe foreign
seeds will yield more return. You should not underestimate
their purchasing power, Wang Peng, an official with the
Publicity Department of Shouguang government, told China’s
Foreign Trade.
Foreign seeds are of high quality with better performance
as they have strong resistance to pests and disease and
high per unit area yield. Though priced higher than domestic
ones, foreign seeds are likely to yield more profits concerning
the manpower and material resources needed in the cultivation
process. This has actually propelled farmers to go for
foreign seeds, said Zhou Siran.
Compared foreign brands, domestic ones still has room
for improvement in the fields such as research and development,
seed processing technology, commodity value, marketing
strategy, business operations, after-sales service, etc.
While, foreign seed firms usually have a strong R&D
team, abundant capital and rich experience, hence they are
able to develop localized products tailored for different districts.
Unfortunately, domestic firms are always lack in innovation.
Out of over 8700 domestic seed firms, it is said that
there are only 100 have research and development capacity.
Further, foreign seeds have strong anti-adversity and
good commodity value, thereby attracting many consumers.
Besides, foreign seeds’ rapid growth in the market can attribute
to their whole industrial system from, from breeding to
production, sales and service.
Domestic firms are catching up
In compliance with Chinese rules, foreign companies
that set up JVs in China cannot take a controlling stake in
the JV. A report from China Securities Journal shows that,
the overseas seed giants usually own seeds of fine quality,
and through the cooperation with domestic companies, the
foreign entity can have a decisive say in the JVs and gradually
acquire the market share that was previously occupied by domestic
companies.
Analysts feel that if domestic firms do not speed up
research and development, and grasp the controlling say and
rights in the JV, China’s seed industry may be finally controlled
by the foreign giants.
Analysts point out that as foreign seed giants expand
their influence, their control over domestic agricultural production
will further increase, which will further threaten the
safety of the country’s grain production,
70

This has aroused concerns of the country’s government.
On April 18, China’s State Council issued guidelines calling
for faster development of a modern seed industry to help raise
domestic grain production.
The Council said that the fragmented and relatively
undeveloped seed sector is hindering the sustainable development
of the agriculture industry, Dow Jones Newswires
reported.
The government plans to promote independent research
and development of high-quality seeds, ensuring sufficient
supplies of grain seeds by 2020, according to a statement
published on the central government’s website.
National seed reserves are planned for hybrid corn and
rice to ensure market supply and keep prices stable, and to
build provincial seed reserves for other agricultural commodities,
the council said.
The government will sharply increase the threshold for
access to the seed market, encourage mergers and acquisitions
in the sector to boost competitiveness, and give tax
breaks to qualified seed firms.
It will also regulate foreign companies’ seed collection,
research and development, production and trade activities
in China, and strengthen security reviews of their acquisitions
of domestic seed companies, the council was quoted as saying.
Meanwhile, China has recently launched a campaign to
eliminate the manufacture and sale of counterfeit seeds, pesticides
and fertilizers, with 336 cases uncovered in the past
six months, Xinhua reported.
The counterfeited agricultural materials uncovered in
these cases were worth 153 million yuan ($23.5 million),
according to a recent statement from the Ministry of Public
Security. The statement said that a total of 7,200 metric tons
of counterfeit seeds were confiscated.
The ministry has pledged to make every effort to safeguard
farmers’ interests and maintain agricultural production.
Confronting the increasing challenges posed by foreign
seed firms, domestic firms themselves should also make an
all-out effort to catch up and recover their lost ground.
First, domestic firms should set up a whole industry
chain form plant breeding to production, sales and marketing
as foreign ones, accelerating the intensive management,
modernization and industrialization.
Second, they should invest more in R&D, increase cooperation
with research institutions to enhance self-innovation,
and set up links with the market with their high-quality
products.
Last but not least, they should improve production and
processing abilities, build a large-scale promotion and sales network,
and attach more attention to after-sales service, said Zhou.
In April 2006, China Agricultural University, Weifang
government and Shoguang government joined hands to
establish the Shouguang Vegetable Research Institute. The
Shouguang Vegetable Breeding Base has also been set up to
facilitate varieties experiments.
During the past five years, the Institute has made substantive
achievements. To date, with the input of RMB 16
million, 8 new vegetable varieties, including melon, luffa and
capsicum, have been cultivated.
The variety Zhongshou 12, which was developed in last
April, reaches international level and may replace some of the
foreign seeds in the coming two to three years, according to a
report by the Institute.
Though domestic firms aspire to grow strong, there is
still a long way to go. The problems of their weak innovation
ability and low level of industrialism, which need long-term
support from the government and combined efforts from
themselves, can not be solved overnight.
By virtue of capital strength, rich management experience
and good after-sales service, foreign firms are likely to
maintain a stable growth in China. However, various new
policies issued recently will be likely to slow their growth.
While, fuelled by the industrial upgrading, high-quality
seed subsidies and enhance of policy support, domestic firms
will witness a rapid growth in the future market, Zhou expected.
71

ON STAGE
Lifestyle
June
KAMA 2011 Love Music Festival
Time: 2011/6/5-2011/6/6
Venue: Beijing Olympic Sports Center
Price: RMB 180/260/300
Tickets are available at 86-10-64177845
Overseas artists: Euro-American famous artist
(EELS)、Japanese artist (Lisa Ono)、Cowboy
Junkies、These New Puritans、Nouvelle Vague、
Katrine Madsen、Cathrine Legardh、Afrokoko
Roots
Domestic Artists: Zhang Ya Dong, Zuoxiao
ZuZhou, Lao Lang、Super VC, Cao Fang, The
Life Journey, Hao Yun, Chun Xiao, Sand, Zhang
Xuanyan, Yufeimen,
Tia Ray,
Gala, Future
Bicycle, Li Ou,
Convenience
Store; Hong
Kong & Taiwan
A r t i s t s : W u
Bai, Anthony
Huang.
Barrage Concert 2011
China Tour
Time: 2011/6/12
Venue: Haidian Theater
Price: RMB 80/180/280/380/
VIP
Tickets are available at 86-
10-64177845
Original score composed by
Paul Flush
Barrage – A high-octane
fiddle-fest that features an international,
multi-talented cast performing
an eclectic mix of music, song
and dance.
Barrage has entertained millions of people around the globe.
Fans in Europe, Asia and North America have enjoyed Barrage at
International Festivals, Concert Performances, Special Events and
TV appearances.
Barrage performances offer up a diverse fusion of cultures,
musical styles and incredible performance vitality. The music of
Barrage continues to evolve — combining contemporary world
music influences, layered vocal arrangements and pulsating modern
beats and rhythms. The young hip cast delivers the show with
amazing energy and musical virtuosity that will take your breath
away.
The talented cast of Barrage, 5 violin players, 1 drum kit
players, 1 guitar player and 1 bass player, is made up of an International
group of musicians that all contribute an impressive array
of multi instrumental talents.
Since its creation in Calgary, Canada, Barrage has been featured
many times at events worldwide having played for many
Presidents, Prime Ministers and Princes. Barrage has also had their
television productions aired on several international TV networks
including the PBS network in the USA, the BBC in the UK and
CBC in Canada and has performed live shows in New Zealand,
Singapore, China, Canada, Finland, Sweden, Ireland, Denmark,
Poland, Germany, Norway, Monaco, the USA and the UK.
“Barrage is too Wow for Words!” – Denver Post
“After an evening of performing jigs on rocket fuel, its no wonder
that more than a few horsehairs snapped on their bows”– LA
Daily News
“One could easily wonder whether the perfectly tight sounds
produced by Barrage are the result of pre-recorded orchestra music.”–
Sergio Martinez, Socal.com Editor
After successful runs in Asia, America and Europe for
over fifteen years, the multi-national troupe comes to China for
their final tour with its best music ever. Come and witness the
precocious talents of these virtuoso violin players and their on
stage exploits!
Spanish Fairy Girl Russian Red China Tour 2011
Time: 2011/6/11 Venue: The One Club
Price: RMB 60/70/100
Tickets are available at 86-10-64177845
76

LIFESTYLE
Known by many
as the Spanish Feist , in
reference to the Canadian
singer-songwriter
who inspires her in
many of her attitudes
on the microphone,
Hernández—who
writes and sings all
of her compositions
in English—states
that she sings in that
language instinctively
because she has always
listened to music in
English. Her voice and
performing style are
also reminiscent of the
childlike and simple,
poetic approach utilized
by California
singer-songwriter Joanna
Newsom.
Russian Red’s project began when Hernández met Brian Hunt,
a musician with an English father and Spanish mother, with whom
she recorded a demo (which included tracks that remain unpublished
like “Reason”, “The Night of the Paper”, and “Sadie”) that
reached more than 70,000 visits on her MySpace page by 2008.
The name Russian Red comes from the colour of a lipstick that
Hernández herself usually wears. When asked how she chose the
name, Hernández stated: “I had a band without a name some time
ago. Since then, I was haunted by an obsession: to find the ideal
artistic name. One day, I fell in love with this colour that a girl was
wearing. I pronounced its name, and now it is my pseudonym.”
Little by little, Hernandez has become well-known in the Spanish
indie arena, performing more than 60 shows during 2007 and taking
part in the prestigious Primavera Sound, among other festivals.
The Spanish producer Fernando Vacas asked Hernández to
record an album to be issued by his label Eureka. The album, her
first, was called I Love Your Glasses and quickly became a success,
leading El Pais columnist Alfonso Cardenal to deem Russian Red
the “revelation of the year”.
Ireland National Choir ANUNA 2011 China Tour
Time: 2011/6/14
Venue: Poly Theatre
Price: RMB 120/180/280/380/580/880/VIP
Tickets are available at 86-10-64177845
● Angel Voices
Anúna have succeeded in dispelling any pre-conceived ideas
about Irish music and choral music performance. An Anúna
concert is a true “show”, a combination of movement, elegant costume,
candles and ethereal and haunting music sung in a unique
way. This has gained the choir a justified reputation for the natural
quality of the singers’ voices. Together with relaxed introductions
by the director and other singers, Anúna’s style of presentation
allows anyone of any musical persuasion to appreciate their performance
despite the esoteric nature of their material. The group
have a very diverse international audience, developed through
seventeen years of touring and slip easily between Classical music
and Irish/World music genres. Their audience can be as diverse as
the musicians that they have collaborated and worked with.
● Comments
The arrangements drift in and out of modern harmonies often sustained
without words, as if borne aloft by the angel voices in the songs.
—New York Times
...haunting melodies, sung without any musical accompaniment,
won rapturous applause and proved beyond doubt that
Anúna’s repertoire extends beyond Riverdance
—Guardian
Anúna, the Irish choral ensemble, is a stellar example of
a crossover group that has avoided compromising its musical
standards and has maintained a high level of involvement in the
worlds of both popular and classical music: it is also an exceptionally
virtuosic chamber choir, with the discipline and technique to
excel in both traditional and contemporary music in the classical
tradition.
—All Music Guide
Anúna is legitimate folklore that weaves religious and secular
threads into an enchanting sonic tapestry...
—Billboard
With Anúna, the worlds of choral, classical and traditional
music intersect with ease, a place where heaven meets the horizon
in perfect coalescence.
—Hot Press
...idiosyncratic genius for unaccompanied
choral timbres.
—Irish Times
...McGlynn evokes a panoply
of angelic voices that cascades
down... These works are breathtaking.
—The Oregonian
Anuna’s live performances of
medieval Celtic music have to be
seen to be believed.... breathtaking...
magnificent.
—Belfast Times
Using crystal-clear and
thunderous sounds, playing with shadows and light, the ensemble
creates an atmosphere of fervent richness. They envelop the hall,
gliding along the aisles, enshrouding the audience in a serene and
meditative atmosphere.
—Le Monde
Anuna gives riverdance gravity.
—Elvis Costello
The Unbearable Lightness of Being- Bennewitz
Quartet Concert
Time: 2011/6/15
Venue: NCPA-Multi-functional Theatre
Price: R M B
160/200/240
T i c k e t s a r e
available at 86-10-
64177845
Jir i Nemecek,
violin Stepan Jezek,
violin
Jiri Pinkas, viola
Stepan Dolezal,
cello
77

ON STAGE
Lifestyle
Haze — Beijing Contemporary Dance Theatre
Time: 2011/6/17-2011/6/18
Venue: NCPA-Multi-functional Theatre
Price: RMB 160/200/240
Tickets are available at 86-10-64177845
“In the end, wind and haze.” –from the Book of Poems,
“Huangsha Wind,” “Final Wind”
Another example. Dark haze (wind-blown dust, hazy sky);
obscure haze (obscurity).
Commonly “buried.” Sunken into the ground. “Haze, the
two wheels, bind four horses.” –from Qu Yuan “Nine Songs,
Untimely Death”
According to history books, also known as “dust-rain.” One
finds “Wind-Haze,”“day-without-light,” “dusk in the daytime”and
“rain and wind make haze,” etc.
Texts for the Piece
● Artists’ Statement
Haze as a creative response to the current economic and environmental
crises
Haze, as a type of air pollution, is in fact a product of the process
of industrialization. Even more essentially, it is a force of the
climate and environment. This new dance piece Haze is devoted
to developing these ideas through the image of haze. Through
the dancers’ bodies, various threats and crises emerge, from the
struggle for survival of the individual to the misdirection and
alienation of industrial civilization.
The underlying force of the dance piece derives from the
sense of crisis and the action of breaking out—all through an
awareness of haze—as well as from the process of coming to
understand the struggle and seeking a deeper understanding. It is
also a work about the haze in the hearts of humans and their active
struggle to break out: the hope of passing through the darkness
and finding light; the effort in a confusing world to find the self
and dreams; the hope that the fog will clear, opening the way towards
dreams. The individual strives to control her own destiny;
the community struggles to break free from the dark haze.
Haze is a creative response to the current economic crisis
as well as to the environmental crisis. It seeks to examine the
relationship between the individual and society. It depicts both
the depths of the heart and the vastness of the world. It seeks to
embody a triple-sided metaphor, which describes at once the individual,
the current era we live in, and our civilization. It seeks the
possibility of a way out, tending to the road ahead and a brilliant
tomorrow.
“Footprints Through The Snow”Independent Band
ANT China Tour 2011
Time: 2011/6/17
Venue: The One Club
Price: RMB 60/70/100
Tickets are available at 86-10-
64177845
Antony Harding is an English
singer, songwriter and musician
from the Isle of Wight. He is best
known as the drummer in London
band Hefner, and plays independently
as ANT.
After releasing a couple of low
key singles in 1999, ANT released
his first mini album, the five-track CD EP Cures for Broken
Hearts in 2000 on English label Fortune and Glory. Having picked
up air play from John Peel on BBC Radio 1 with his first 3 releases,
ANT then recorded a 4 song session for the John Peel show.
ANT’s debut solo album A Long Way to Blow a Kiss was
released in 2002 also on Fortune and Glory Records.
ANT signed a deal with Italian label Homesleep Records in
2003 who released ANT's second mini album Floating on the
Breeze.
ANT returned to Fortune and Glory Records to release his
compilation album Sad to See It's Morning in 2004, featuring all
the singles and B-sides and rarities ANT had released up to that
point.
In 2005 ANT collaborated once again with Hefner band-mate
Darren Hayman, providing acoustic guitar, backing vocals and
percussion on the track The Light In Her Room on Darren’s solo
EP Cortinaland.
ANT released a limited edition MP3 album When the Morning
Arrives of 25 previously unreleased tracks in June 2009.
Harding and Hayman collaborated again on a new split 7"
single that was released in July 2009 on Black Kitten records
of Italy where they sang and played on each other’s songs.
ANT is currently working on his next full length album The
Birds Sing Goodnight To You And Me at home in Sweden.
Desting-Dresden
Philharmonic
Orchestra Concert
Time: 2011/6/18
Venue: NCPA-Concert
Hall
Price: RMB 200/350/
500/650/760/880/VIP
Tickets are available at
86-10-64177845
78

MOVIE
French films with Chinese (and sometimes English) subtitles
RMB 20 (Students:RMB 10)
Fidelity card: RMB 100/5 films + 1 free (Students: RMB 50 )
Free entrance on Monday
More information: www.ccfpekin.org/www.faguowenhua.com
《The feet in the water…》
In June, before summer holiday, come to IFC
to watch a selection of refreshing French films set
in seaside places…
More information on: www.ccfpekin.org/
www.faguowenhua.com /
Villa Amalia
Sunday 6/17 – 19.30
Saturday 6/18 – 15:00
France, 2008 Sunday 6/19- 17.00
94’, Drama
Directed by: Benoît Jacquot
Cast: Julie-Marie Parmentier, Nina Ro
Like the straw that breaks the camel's
back, one night Ann sees Thomas kissing
another woman and she decides to leave him,
to leave everything behind.
She’s a musician and only music has a hold over her, but it
doesn’t hold her back. Music is everything to her. Georges, a
childhood acquaintance, appears on the scene. Empowered by his
friendship, Ann breaks up with Thomas and leaves. Setting out to
face her origins and her destiny, she finds an island, there where the
Villa Amalia stands.
Seaside
The big blue
Saturday 6/11- 17.00
France, 2001
88’ min, Drama
Directed by: Julie Lopes- Curval
Cast: Bulle Ogier, Hélène Fillières,
Ludmila Mikaël
Friday 6/10 – 19.30
Saturday 6/18 – 19.30
France, Unites States, 1988
163’, Adventure
Directed by: Luc Besson
Cast: Jean-Marc Barr, Jean Reno,
Rosanna Arquette
In English with Chinese subtitles
Marie works in a shingle processing
factory at the end of one beach in a region
crowded of vacationers during the summer.
Paul, her boyfriend, is a grocer in
winter and lifeguard in summer. Worried about his mother Rose
who gambles away her retirement fund in the casino’s one-armed
bandits, Paul has trouble coping with Marie’s dreaminess and suffocates
her with his awkward affections.
A feeling of discontent progressively overtakes Marie. She
decides to leave with Albert, obliged to take over the family shingle
factory, who looks like a Prince Charming.
Award of the Golden Camera at Cannes Festival.
Sunday 6/12 – 15.00
Captain Achab
Sunday 6/19- 15.00
France, 2007 Sunday 6/20 – 19.30
100’ min, Adventure
Directed by: Philippe Ramos
Cast: Denis Lavant, Jacques Bonnaffé,
Bernard Blancan
1840. Who could have imagined
that that young boy reading the Bible in a
hunting shed in the middle of the forest,
would a day become a whaler sea captain?
No one. And yet, from helping to beatings, Achab grows up and
seizes on the ocean. He becomes an awesome captain and meet
a stunning bright whale…Moby Dick.
Pauline at the beach
France, 1982
97’min, Comedy Drama
Directed by: Eroc Rohmer
Cast: Arielle Dombasle, Amanda
Langlet, Pascal Greggory
Monday 6/13 – 19.30
Sunday 6/19- 19.30
After she got divorced, Marion
decided to end the summer on the Normandie
coast, with her cousin Pauline.
The two young women will experience
unexpected love stories…
Prize of the Golden Bear and the Fipresci prize at the Berlin
International film festival.
Liberté-Oléron
France, 2000
1 0 7 ’ m i n ,
Comedy
Directed by:
Bruno Podalydès
Sunday 6/12 – 19.30
Friday 6/17-17.00
Wednesday 6/22 – 19.30
Cast: Denis Podalydès, Guilaine Londez,
Patrick Pineau
Jacques, 38, goes vacationing on
Oléron Island with his four young boys. He
gets fed up with beach life and invests all his savings in the purchase
of a yacht – a glorified dinghy – that he renames “Freedom-
Oléron”. He then hatches a plan to sail over to neighboring Aix Island,
5 kilometers away. Although an incompetent sailor, Jacques
tells his family that, after God, he is the only captain on board.
79

came to live in Beijing in February
2006. This is the first city I live
abroad Mexico and after five year,
I feel it like a second home. I enjoy
when I travel to another city in China,
but after a few days, I miss Beijing.
I am from Mexico City, which is
very similar to Beijing. They are really
big 20 million people or so. Both are old
cities, deeply proud to be the capitals and
cultural centers of countries with a long
and incredibly rich history. Beijing and
Mexico City are perfect combinations of
the old and the new, tradition and modernity,
convenience and pressure. Both are
organized around a magnificent square
surrounded by the symbols of tradition,
history and political power. Mexico City
was the first city from a developing country
to host the Olympic Games in the
twentieth century, in 1968; Beijing was
the first in the twenty-first century, in
2008, exactly 40 years after. According
to a study, they even share the dubious
honor to be the cities with the worst traffic
jams in the world. It is no wonder that
they are sister cities having so much in
common and that I feel so fine in Beijing.
I think there are two kinds of
people. The ones who love big cities and
the rest. I definitively belong to the first
kind. I have to recognize that to live in
a city like Beijing means trouble: traffic
jams, long commuting times, crowded
places anywhere, higher prices, environmental
pollution... I will never challenge
that. But I have no doubt that the advantages
far compensate the disadvantages.
You have access to the best schools, the
best services, interesting people from the
country and abroad, the very nerve of
My Life
in Beijing
By Jose Alberto Limas G.
the cultural life in a wonderful country
and, for somebody deeply interested in
politics, both national and international,
as me, the opportunity to feel the pulse
of the decision making process, which in
Beijing is equal to history in the making.
Some people would rather live in a beautiful
small town near the sea. That could
be perfect for them, but not for me. I
would only go there for vacation.
Beijing has changed so much in
these five years. When I arrived in a cold
morning of February 2006, landmarks
such the Bird’s Nest Stadium and the
CCTV twisted building were just works
in progress. The amazing terminal 3 of
the Capital Airport did not exist either.
The city had many less bars, discos,
shops, restaurants, art galleries, bookstores,
cinemas, among other things,
than today. It was very difficult to find
many daily use articles. Now you can
find almost anything if you look at the
right place and find outstanding buildings
and public works anywhere.
Beijing is a place
full of life, of energy.
It is not only all the
buildings in the making, the new malls,
museums and public transportation.
It is, above all, the people. I really like
beijingners, and a beijingner for me is
not someone with a Beijing hukou, but
anybody trying to make its life here: the
“ant-tribe” of thousands of students from
the provinces, trying to have their own
Beijing dream; the migrant workers constructing
a global capital and sleeping in
air-defense bunkers; the business people
in the CBD, forging world class companies;
the crowds of beautiful and joyful
people filling the numberless bars and
discos almost every night; the brilliant
artists from 798 zone, with their revolutionary
art, the nice old people practicing
taichi in the parks; the children
cramming in the schools every morning,
the lao beijing ren in their hutongs…
I married five months before coming
to Beijing and my son was born here
in July 2007. I use to joke saying that he
is Beijing ren, but so is my whole family.
When I was studying Chinese, a
teacher told me that sometimes in China
people say something like this: if you
want to eat, go to Guangzhou, if you
want to make business, go to Shanghai,
if you want to find a beautiful wife, go
to Chengdu… but if you want to live,
you have to go to Beijing. I think that is
absolutely right.
(Author: Second Secretary of
Embassy of Mexico in China, Responsible
of Commercial Affairs)
My son and I had a good
time in the Chaoyang
Park, one of my favorite
places in Beijing.
My family visited the Bird’s
Nest during the Beijing
Olympics in 2008.
84

My colse friend and I toured around the Summer Palace.
I Love My Beijing Life
Time flies. More than 4 year
has already passed since
February 2007 when I came.
When I was a little girl, one
of my dreams was to go to Beijing even
though I did not know what Beijing
was like. I just knew the Beijing’s Heavenly
Peace Gate (Tiananmen) as we
learned that red song (the song singing
the praise of the CPC) “I love Beijing
Tiananmen…” Then when I was a
middle-school student, I began to long
for studying in the Tsinghua University
or Peking University, the first-class universities
in China. Finally I didn’t fulfill
my dream of studying in Tsinghua or
Peking University, but I really brought
myself to Beijing, studying in another
university and worked here.
Before I came to Beijing, Beijing
was just a concept in my mind, but I
really had such a special feeling for
it which I can’t tell. For Shanghai or
for Guangzhou or other cities, I never
had that feeling. Now I supposed this
feeling may attribute to the cultural
atmosphere and the sense of the history.
I liked to visit the Forbidden City,
the Summer Palace, and the Beihai
Park etc, appreciating the thousands of
By Rose Yan
years of heritage of Beijing, feeling the
natural beauty and the cultural atmosphere,
and thinking the historic stories
once occurring there. The old grandpa
wrote beautiful Chinese characters
with the big writing brush by the lake;
the retired aunts and uncles formed
Consortium Classicum to play music
together under the old trees in the park;
the young people boated on the lake, or
played other games.
I liked to linger around the
Hutongs in Beijing. I liked the famous
and bustling Nanluoguxiang, which
I can see artistic bars and buy some
The consortium formed by the retired people played music in the
Beihai Park.
delicate articles; I also like the peaceful
Dongjiaominxiang (the embassy zone
in the early 20 century) , where I can
enjoyed that peace while seeing those
old buildings with different styles and
recalling the historic scenes. I liked to
ride my bike alone in the early morning
or in the twilight time in summer to
tour around those Hutongs or go to the
Shichahai, appreciating the beautiful
scene there. The feeling that the breeze
stroked your face was just so comfortable
and cool, which refresh you and
made you forget all the worries.
I liked climbing mountains in the
suburb of Beijing with the tour pals,
and I also liked organizing a group of
long running pals to run together in
the Olympic Forest Park. It was Beijing
which gave me opportunities to
acquaint with many easy-going and
optimistic happy tour pals, since only
Beijing had favorable natural geographic
conditions, and had the charm of
attracting so many people who love the
outdoor sports.
I liked Beijing as it is such an energetic
metropolitan, which I felt once
I came here. There are many opportunities
for you to explore. There are so
many young people who are fighting for
their dreams with me together. It just
made me feel not lone while striving for
my dream. When I felt depressed, there
were always some models encouraging
me to go ahead.
I love my life in Beijing even
though it was without all these things
above. That’s because I was so lucky to
have some dear friends here. I shared
happiness with them, and I also told
them my worries. With them, I was not
afraid of anything ‘cause I know they
are always beside me ready
to support me, encourage me
and help me.
I love Beijing, but I
also hate Beijing as there is
so much pressure upon our
shoulders. Overwork is always
the common occurrence, the
expensive house, fierce competition,
polluted air or sand
storm.. etc. all these things are
the reality you have to face.
With all these stress, I still
chose to live in Beijing and
love my Beijing life still.
85

INFORMATION
2011
China Market
Suppliers List
Company Name: Fuzhou Changhua
Power machinery Co.Ltd.
Company Profile: We are professional
electric machinery manufacturer in china,
which specializes in producing diesel and
gasoline engine, diesel and gasoline generator,
as well as diesel and gasoline water
pump. Our company has obtained ISO9001
certification and Chinese national CCC
certification, most of our products now have
passed CE certification. Our products have
been exported to more than 30 countries
and regions, mainly in Europe, Southeast of
Asia, America and Middle East.
Contact Person: Kate
Tel: 86-591-88071392
Fax: 86-591-83845608
Post Code: 350001
Email: kate@changhuapower.com
Website: www.changhuapower.com
Company Name: Shenzhen YONAN Air
Conditioning Co., Ltd
Company Profile: Shenzhen YONAN Air
Conditioning Co., Ltd is one of the largest
specialized air conditioner enterprises that
contain R&D, manufacture, sales and service
in China and all over the world.
We are a large high technology enterprise
with a sales office located in Shenzhen
CBD and a factory situated in Dapeng town
Shenzhen city China. Our factory possesses
a hi-tech industrial park with land coverage
of 800,000 square meters, dozens of
modernized production lines with an annual
production capacity up to 10 million units of
air conditioners.
In the last few years’ rapid development,
YONAN achieved a lot, and had become a
leading brand in air conditioner industry. Its
sales network for household AC and commercial
AC covers over 150 countries and
regions. Now YONAN become one of the
most important manufacturers in China, and
the fastest developing enterprise in air conditioner
industry. Especially during the world
financial crisis, YONAN adjust the sales
policy timely, share the losses with customers
in crisis, and stick together with customers in
difficulty, which had been highly appreciated
by customers worldwide.
The reason why YONAN can keep a rapid,
stable and efficient development is its corporate
spirit. Relying on human resources and
managing by trust, and we hold the business
principle of “quality is the basis of enterprise’s
existence, science and technology is the guaranty
of enterprise’s benefits and the brand
is the power of enterprise’s development”
emphasizes the science and innovation. After
making efforts in many years, YONAN
has accomplished lots of research results and
owned many core technologies. Up to now,
YONAN Air Conditioner has passed over
200 global authoritative certifications.
YONAN believes: Success comes from
efforts, prospect goes with challenge. YO-
NAN staff will constantly pursue trust and
efficiency to increase overall management
skill and maintain high speedy development,
tomorrow, YONAN will keep innovation
constantly, YONAN will definitely be acknowledged
as a famous brand at home and
abroad.
Contact Person: Maggie
Tel: 86-755-83154276
Fax: 86-755-83154275
Post Code: 518040
Website: http://www.yonanac.com
Company Name: Zhongshan Eastech
Electrical Appliance Co. Ltd
Company Profile: Zhongshan Eastech
Electrical Appliance Co. Ltd develops and
manufactures electronic home appliances
and health products. We target the growing
health-conscious market worldwide. Our
mature product wine cooler has won great
credit for several years, which enjoys a great
market share. Our focal product, vegetable
washer/disinfector has got appearance patent
and international priority patent, and our
company is ranked the first in the world for
developing it.
Our product range includes fruit and vegetable
washers/disinfectors, wine coolers, and
other healthy products. The quality of wine
cooler is very stable and improved each year.
The new product vegetable washer/disinfector
has got more than 10 patents, and it’s
innovative in releasing ozone to decompose
the poisonous chemical leftover on the fruits
and vegetables, and also kill bacteria during
washing process. Elimination rate of bacteria
and pesticide reaches 99-percent (CNAL
test report). Our wine coolers feature elegant
design, with non-frost function and stable
refrigeration temperature.
In addition to our 25 ready models, our 10
R&D engineers add 10 more new designs
every year. Backed by more than a decade
of experience, and the background of working
in Haier and Keloon, they can get your
customized ideas into sample within one
month.
Monthly production capacity in our 10,000-
square-meter factory reaches 2,500,000
units. 20 QC technicians conduct thorough
inspection to ensure that every piece you
receive is CE-, CB- and ETL-certified.
Clients in Europe, the US, Asia and the
Middle East are benefiting form our healthconscious
products; you can too. Contact us
now.
Tel: 0757-28315389
Fax: 0757-28315098
Post Code: 528427
Website: http://www.zseastech.com
Company Name: Ningbo Tieda Industry
Co., Ltd
Company Profile: Ningbo Tieda Industry
Co., Ltd was established in 2002, It is located
in a economically developed area Cixi,
Ningbo. Ningbo Tieda Industry Co.,Ltd
manufactures Brass/steel fittings, Valves,
Sanitary wares, Bathroom accessories, Cistern
parts, Hardware products, and so on.
Over the years Ningbo Tieda Industry Co.,
Ltd established a integrated QC and customer
service system. With over 200 highly
skilled and experienced workers in our factory
provide us constantly reliable quality
and good reputation. Perfect Services and
abundant experiences also provide us sufficient
self-confidence on expecting better
future.
Ningbo Tieda is committed to a high standard
of performance to meet the expectation
of our customers. Ningbo Tieda has
developed over 200 items for your selection.
86

SUPPLY INFO
Meanwhile we create at least 18 new products
each year to keep your stock up to date.
Ningbo Tieda exports US$5 million of merchandise
to Europe, the US, North Africa
and Asia.
We sincerely hope to welcome you as our
customer at Ningbo Tieda for fruitful and
long term collaboration.
Contact Person: Simon
Tel: 0574 - 63925255
Fax: 0574 - 63925256
Post Code: 315300
Website: http://www.nbtieda.cn
Company Name: Shanghai Golden Peas
Electric Trading Co., Ltd
Company Profile: Shanghai Golden Peas
Electric Trading Co., Ltd. was founded in
2008, the company formerly known as Hong
Yong Electric traders row, in the electrical
industry with 10 years of experience in
production and sales, quality of survival, innovation
as a driving force, to the credibility
of development for the purpose of to more
sophisticated technology, superior quality
and perfect service for you.
The main production and operation of
lamps, LED flashlights, work lights, mosquito
swatter, mosquito lamp, hair dryer,
perking device, electric kettle, sockets and
other types of household electrical appliances.
Welcome customers come to buy. The
company can support small and wholesale,
for more entrepreneurs to provide more comprehensive
service, your satisfaction is our
eternal pursuit.
Add: F4-17203/17204, Yi Wu International
Trade City, Zhejiang
Tel: 0579-85183203
Fax: 0579-85199280
Post Code: 322000
Website: http://www.hongyingdianqi.cn
Company Name: LAMO Electrical Appliance
Group CO., Ltd
Company Profile: LAMO Electrical Appliance
Group CO., Ltd. established in
1992, and now LAMO have been rapidly
developed and being a leader in manufacturing
and selling refrigerator, water
dispenser, washing machine and water
purifier etc.
There are more than 2000 workers in our
factory, the total covering area of LAMO
is 173,334,00 square meter. The fixed assets
amount to US$6 billion. Now we have the
production capacity of refrigerator and wine
cooler 1,000,000 sets, the chest freezer and
ice-maker 300,000 sets per year. Meanwhile,
we also supply water dispenser water purifier
and washing machine and the annual capacity
water dispenser and washing machine are
3,000,000 sets and 1,500,000 sets respectively.
Most of products have gained GS/
CE/EMC/CB/UL/ETL approvals. Furthermore,
we are the first manufacturer passing
the ROHS certificate for the entrance
into European markets. Experienced staff,
advanced machinery and a strong technical
force, we have established a comprehensive
quality control system according to ISO
9001:2000 standards.
Bing a forerunner of Chinese exporter to
land European and US markets. Win 20
patents in our country. LAMO as a name
brand in domestic market has great potential
of development, stepping to goal of being a
worldwide famous brand.
In the competitive market LAMO has
great exploitation team. Every year we
develop more than 10 new models, and
have established long and steady business
relationship with some famous companies.
Our quality system has greatly strengthened.
Our factory located only 60 kilometers away
from Ningbo Port, the second largest container
port in China. And aside Hangzhou
Bay Bridge the longest bridge in the world,
it only takes 1 hour to Shanghai, the biggest
open city of China.
Contact Person: Lisa
Tel: 0574 - 63590840
Fax: 0574 - 63590828
Post Code: 315322
Website: http://www.lamo-china.com
Company Name: Ningbo Yuanda Electrical
Appliance Co., Ltd
Company Profile: Ningbo Yuanda Electrical
Appliance Co., Ltd was established in
1980, located in Cixi city, Ningbo, China. It
is a prosperous city enjoying the convenient
transportation as well as information communication.
It is 50 kms away to the harbor
city Ningbo.
Our company is becoming a leading manufacturer
of household appliance since it
engaged in this field in 1997. Enterprise specializing
in producing kitchen machine, the
main products are hand mixer, blender, egg
boiler, juice extractor, food processor. The
company covers an area 30000 square meters,
and has more than 500 employees, 20
engineers and technicians. The total assets
are US$4.8 million, and the annual output
is around 3 million pieces. The exporting
quantity excesses 2.8 million pieces per year
(US$10 million).Most of our product has
CE, GS, ROHS, UL, ETL approval. In
August, 2001, our company acquired the
authentication of ISO9001:2000 quality system.
Our products are well marketed in the
Europe, Asia, America, etc.
Contact Person: Joe Xu
Tel: 0574 - 63259530
Fax: 0574 - 63252501
Post Code: 315318
Website: http://www.nbyuanda.cn
Company Name: Cixi Yuyang International
Trading Co., Ltd
Company Profile: Launched by China
Siberia Group, Cixi Yuyang International
Trading Co., Ltd. is located in Cixi city,
Ningbo China. Specialized in overseas sales
of household appliances, we provide global
customers with high quality commodities
at competitive prices, and excellent logistics,
marketing and after-sales services.
The products we cover include refrigerators,
freezers and washing machines. Since its
incorporation, our company has become a
fast growing and reputable Chinese supplier,
exporting to nearly 50 countries around the
world.
Following our distribution and marketing
success, we also extend to promote our SI-
BERIA brand for those products, and expect
a brilliant prospect of enhancing the brand
awareness.
The quality of products is the first priority
of Cixi Yuyang. The company has obtained
ISO 9001 system recognition as well as
CCC, CE, CB, SASO, ETL and Rohs
certifications. To facilitate the payments by
our customers, we established coopeation relationship
with SINOSURE (China Export
& Credit Insurance Corporation) in 2008,
which will undoubtedly help expand our
global business network.
Contact Person: Shelly
Tel: 0574-63815028
Fax: 0574-63815775
Post Code: 315300
Website: http://www.siberia-group.com
87

INFORMATION
China Fairs
& Expos
Energy and resources, Mining
Industry, Metallurgy, Welding,
Electric Power
The 12th China International New Energy &
Energy-Saving Industry Exhibition
Venue: China New International Exhibition
Centre
Date: June 7-June 10, 2011
Exhibits: Photovoltaic (pv), wind energy,
new energy and related products.
Add: Room 1003, No.30 Dalangwan Street,
Alley 958, Xinsong Road, Shanghai, 200021
Tel: 86-21-61179628
Fax: 86-21-61916497
Contact: You Jian (+86-13671856722)
Email: infonengyuan@163.com
2011 China (Guangzhou) International Energy
Conference and Exhibition
Venue: Guangzhou Chinese Export Commodities
Fair Pazhou Complex
Date: June 9-June 11, 2011
Add: South Tower A, Zhongzhou Center,
No.1068, Xingang East Road, Guangzhou
City, 510335
Tel: 86-20-89048095
Fax: 86-20-89048096
Web: www.enertechexpo.com
Email: info@enertechexpo.com
2011 Shanghai International Offshore Wind
Power and Wind Power Industrial Chain
Conference and Exhibition
Venue:
Shanghai New International
Expo Center
Date: June 15-June 17, 2011
Exhibits: Wind Power equipment,
Wind Power Ancillary Services,
Wind Farm Development, Wind
Power Project Construction.
Add: 8th f loor, East
Foreign Mansion, Yan An Mid
Road No.841, Shanghai, 200040
Tel: 86-21-62792828
Fax: 86-21-65455124
Contact: Fei Jiayi
Web: www.offshorewindchina.com
Email: fjy@siec-ccpit.com
The 22nd China Harbin International Economic
and Trade Fair
Venue: Harbin International Exhibition and
Sport Center Center
Date: June 15-June 19, 2011
Exhibits: New material, new energy and
energy saving technology, biomedical technology,
advanced manufacturing and information,
agriculture creativity and intensive
processing, environment protection and public
safety.
Add: No.35, Mei Shun Road, Nangang District,
Harbin, 150090
Tel: 86-451-82340100
Fax: 86-451-82345874
Contact: Jing Lin, Zhang Yuhong
Web: www.ichtf.com
Email: chn@ichtf.com
The 12th Guangzhou International Metal &
Metallurgy Exhibition
Venue: Guangzhou Chinese Export Commodities
Fair Pazhou Complex
Date: June 23-June 25, 2011
Add: Xinghui Garden, No.29 Huaming
Road, Zhujiangxincheng, Tianhe District,
Guangzhou, 510623
Tel: 86-20-38621070
Fax: 86-20-38620781
Contact: Chen Xiaoling (+86-15820261506)
Email: 183125734@qq.com
The 12th Guangzhou International Copper
Industry Exhibition
Venue: Guangzhou Chinese Export Commodities
Fair Pazhou Complex
Date: June 23-June 25, 2011
Add: Xinghui Garden, No.29 Huaming
Road, Zhujiangxincheng, Tianhe District,
Guangzhou, 510623
Tel: 86-20-38621070
Fax: 86-20-38620781
Contact: Chen Xiaoling(+86-15820261506)
Email: 183125734@qq.com
Construction, City planning,
Decorations
2011 Guangzhou Electrical Building Technology
Exhibition
Venue: Chinese Export Commodities Fair
(Pazhou Complex)
Date: June 9-June 12, 2011
Exhibits: LED display technology and application
systems equipment, urban landscape
lighting.
Add: Room 2616, Yaozhong Plaza, No.9, Linhe
West Road, Tianhe District, Guangzhou
Tel: 86-20-36047286
Fax: 86-20-36047797
Contact: Li Yuan
2011 China International Garden Machinery
and Equipment and Technology Exhibition
Venue: Shanghai New International Exhibition
Center
Date: July 14-July 16, 2011
Exhibits: Landscape planning and design,
landscaping works, anticorrosive wood,
wood-plastics, roof greening materials, roofing
system engineering.
Add: 3rd floor, Shanghai Exhibition Center
Administration Building, NanJing West
Road No.1333, Shanghai, 200040
Tel: 86-21-62477668
Fax: 86-21-62479818
Email: victoria@vnuexhibitions.com.cn
Furniture, Household Decorations,
Woodwork, Floor Decorations
The 16th China (Dalian) International Furniture
Exhibition
Venue: D a l i a n
World Expo Plaza
Date: June 10-June
13, 2011
Add: 25th Floor,
World Trade
Building, No.25
Tongxing Street,
Zhongshan District,
Dalian,
116001
88

FAIR & EXPOS
Tel: 86-411-82538642
Fax: 86-411-82538678
Mould
2011 The 5th China (Shenzhen) International
Model Exhibition
Venue: Shenzhen Convention & Exhibition
Center
Date: June 16-June 19, 2011
Tel: 86-20-28309360
Fax: 86-20-28309360
Contact: Gao Sheng
Email: simexpo@163.com
Automation
P-MEC China 2011
Venue: Shanghai New International Expo
Center
Date: June 21-June 23, 2011
Exhibits: Analytical equipment, automation
& robotics, batching system, cleanroom
equipment, filling equipment, filtration/seperation/purification,
instrument, machinery,
laboratory products and equipment, packaging.
Add: Floor 11-12, No.3 INN Building, Chaoyangmennei
Street, Dongcheng District,
Beijing, 100010
Tel: 86-10-58036298
Fax: 86-10-58036317/18/19
Contact: Zhao Jinman
Web: www.cphi-china.cn
Email: zhangxiong@cccmhpie.org.cn
Transportation, Logistics, Storage
2011 The 13th China Chongqing International
Auto Industry Exhibition
Venue: Chongqing International Convention
and Exhibition Centre
Date: June 6-June 13, 2011
Add: No.269, Chongqing High-tech Zone
Branch Park, 400041
Tel: 86-23-68634132
Fax: 86-23-68631388
Web: www.autochongqing.com
2011 The Ninth China (Guangzhou) International
Auto Supplies Exhibition
Venue: Guangzhou Guangzhou Poly World
Trade Expo
Date: June 9-June 11, 2011
Tel: 86-20-2837 8188
Contact: Hang Hui (+86-13710833855)
Email: info@fce.cn
2011 Ninth China (Guangzhou) International
Auto Parts Exhibition
Venue: Guangzhou Guangzhou Poly World
Trade Expo
Date: June 9-June 11, 2011
Tel: 86-20-2837 8188
Contact: Hang Hui (+86-13710833855)
Email: info@fce.cn
Chemical Industry
2011 The 5th (Chengdu) International Chemical
Industry Exhibition
Venue: Chengdu New International Convention
and Exhibition Center
Date: June 8-June 10, 2011
Add: No.279, Tianfu Street, Chengdu
Tel: 86-28-65537017
Fax: 86-28-65530000
CPhI China 2011
Venue: Shanghai Shanghai New International
Expo Centre
Date: June 21-June 23, 2011
Exhibits: intermediates, fine chemicals,
natural extracts, custom manufacturing,
contract research, analytical services.
Add: Floor 11-12, No.3 INN Building, Chaoyangmennei
Street, Dongcheng District,
Beijing, 100010
Tel: 86-10-58036298
Fax: 86-10-58036317/18/19
Contact: Zhao Jinman
Web: www.cphi-china.cn
Email: zhangxiong@cccmhpie.org.cn
Glass, Ceramics, Plastic, Rubber
2011 Shenzhen International Special Ceramics
Industry Forum and Exhibition
Venue: Shenzhen Convention & Exhibition
Center
Date: June 23-June 25, 2011
Tel: 86-20-62371251
Fax: 86-20-62371259
Contact: Huang Yuling (+86-15914385891)
Email: xqexpo@126.com
Electronic Intelligence
The 19th China International Electronic Components,
Electronic Equipment Exhibition
Venue: Shenzhen Convention & Exhibition
Center
Date: June 23-June 25, 2011
Tel: 86-20-62371251
Fax: 86-20-62371259
Contact: Huang Yuling(+86-15914385891)
237 2011 The Ninth Guangzhou POS Machine
Exhibition
Venue: Chinese Export Commodities Fair
Pazhou Complex
Date: June 30-July 2, 2011
Add: H Building, Jinsui Building, No.900,
Guangzhou Street, 510620
Tel: 86-20-31746168
Fax: 86-20-22223568
Contact: Ye Jianbo
Email: yejianbomr@126.com
China Xi’an International Hi-Tech Fair 2011
Venue: Xi’an Greenland PICO International
Convention & Exhibition Center
Date: June 1-June 30, 2011
Exhibits: High-tech achievements, hi-tech
products, new industries, etc.
Tel: 86-29-88350391
Fax: 86-29-88350391
Contact: Yu Anna
Web: www.sxayax.com
Email: pianhua@126.com
Information Technology,
Network, Communication,
Broadcast
2011 The 9th Tianjin International
Mobile Phone Industry Exhibition
Venue: Tianjin Binhai International
Convention & Exhibition Centre
Date: June 8-June 10, 2011
Tel: 86-755-83721748
Fax: 86-755-83721979
Contact: Liu Lu (+86-13684940952)
Email: belly1234@163.com
The 4th China (Shenzhen) International Tape
and Protective Film Exhibition
Venue: Shenzhen Convention & Exhibition
Center
Date: June 16-June
19, 2011
Add: No.7 Jianzhong
Road,
Tianhe Science &
Technology Zone,
Guangzhou
Tel: 86-20-
85556058
89

INFORMATION
Fax: 86-20-85551758
Web: www.dgjzd.cn
Email: huiyi3000@126.com
787 2011 The 3rd Shanghai International
Digital Signage Exhibition Shanghai
Venue: Shanghai International Exhibition
Center
Date: June 22-June 24, 2011
Exhibits: Digital bulletin, Digital
Electronic Display Board, Network
Advertisement Machine, Multimedia
Information Publishing System, High-
Definition Networking Information Release
System, etc.
Add: Room 303, Block C, Luoyang Road
No.168, Shanghai, 201104
Tel: 86-21-34080278
Fax: 86-21-54306576
Web: www.chinadigitalsignage.org
Email: info@chinadigitalsignage.org
Beauty and Cosmetics
High Quality Life Expo
Venue: AsiaWorld-Expo
Date: July 22-July 24, 2011
Exhibits: Beauty and health care, recreation
and cultivate, school supplies, shrewd
consumption.
Tel: 86-52-1830668
Fax: 86-52-28240249
Email: exhibitions@tdc.org.hk
Wedding Dress, Photography
Photonics Festival in Taiwan 2011
Venue: Taipei World Trade Center Nangang
Exhibition Center
Date: June 14-June 16, 2011
Tel: ( 02 ) 23514026
Textile and Clothing
2011 The 10th China International Consumer
Goods Fair
Venue: Ningbo International Convention
and Exhibition Centre
Date: June 8-June 12, 2011
Add: No.16 Foreign Economic and Trade
Building, No.190, Lingqiao Road, Ningbo,
315000
Tel: 86- 574-87327683
Fax: 86-574-87327443
Email: trade@cicgf.com
Hong Kong Fashion Week for Spring/Summer
Venue: Hong Kong Convention and Exhibition
Center
Date: July 4-July 7, 2011
Exhibits: All sorts of clothing, fashion accessories,
clothing related products and services.
Tel: 852-1830668
Fax: 852-28240249
Email: exhibitions@tdc.org.hk
Fur, Leather, Shoes
2011 Chengdu Home, Leisure Products &
Gifts Fair
Venue: Chengdu New International Convention
and Exhibition Center
Date: June 17-June 19, 2011
Add: 1801, Shenzhen International Chamber
Center, Fuhuassan Road, Futian District,
Shenzhen, 518048
Tel: 86-755-33989235
Fax: 86-28-86009111
Contact: Ms.Zhu
Email: judy.zhu@reedhuabo.com
2011 China (Wenzhou) Leather Handbags
Fair
Venue: Wenzhou International Convention
and Exhibition Center
Date: June 17-June 18, 2011
Add: Third floor, No.1 Building, Baozhou
Road, Xueyuan East Street, Wenzhou
Tel: 86- 577-85678566
Fax: 86- 577-85678577
2011 The 12th China (Qingdao) International
Leather, Shoe Machine and Shoe Material
Fair
Date: June 28-June 30, 2011
Exhibits: All kinds of leather, synthetic
leather, shoes, shoe lining, shoetree,
etc.
Add: 4th Floor, Huajia Building, No.52,
Shandong Road, Qingdao, 266071
Tel: 86-532-85012141
Fax: 86-532-85012624
Toys, Gifts and Craftwork
2011 The 12th Shenyang Gift, Handicraft,
Artwork Collects Exhibition
Venue: Shenyang KeXueGong Convention
& Exhibition Center
Date: June 9-June 13, 2011
Add: Rm1-15-10, Aidu International, No.70
East Jianshe Road, Tiexi District, Shenyang,
110021
Tel: 86-24-85861056
Fax: 86-24-25657817
Contact: Li Hong
Email: sy_gift@126.com
The 12th China Qingdao International
Gift, Art Crafts and Home Decoration Expo
Date: June 10-June 12, 2011
Add: Room 712-715, Shizheng Office
Building, No.17, Jiading Road, Qingdao
Tel: 86-532-83755508, 83722208
Fax: 86-532-83742577
Web: www.cqige.com
Email: qdblh@126.com
HKTDC Summer Sourcing Show for Gifts,
Houseware & Toys
Venue: Hong Kong Convention and Exhibition
Center
Date: July 4-July 7, 2011
Exhibits: Gifts and premium, household
products, home decorations, toys and games,
festive and party items, etc.
Tel: 86-592-1830668
Fax: 86-592-28240249
Email: exhibitions@tdc.org.hk
Jewelry, Watches and Clocks,
Glasses
2011 Shenyang Jewelry Exhibition
Venue: KeXueGong Convention & Exhibition
Center
Date: June 9-June 13, 2011
Add: Rm1-15-10 Aidu International, No.72,
East Jianshe Road, Shenyang, 110021
Tel: 86-24-25612969
Fax: 86-24-25657817
Contact: Wang Lin(+86-13032458741)
Email: 25848175 @163.com
Taipei Century Wedding Jewelry and Marriage
Exhibition
Venue: Taipei World Trade Center
Date: July 22-July 25, 2011
Tel: 86-2-27597167
Food and Additives, Beverage,
Drinks, Seasonings, Dairy Products
2011 Weihai Food Exposition
Venue: Weihai International Exhibition
Center
Date: June 11-June 13, 2011
90

FAIR & EXPOS
Exhibits: Food, aquatic products.
Add: Pavilion A, No.58 Haibin Mid Road,
Weihai, Shandong, 264209
Tel: 86-631-5335149
Fax: 86-631-5182509
Contact: Li Yanxu (+86-13963198868)
Web: www.weihaishipin.com
Email: weihaishipin@126.com
FiA China 2011
Venue: Shanghai Shanghai New International
Expo Center
Date: June 21-June 23, 2011
Exhibits: Food additive, food Ingredients,
natural Ingredients, health Food, natural
extracts, and analytical services.
Add: Floor 11-12, No.3 INN Building,
Chaoyangmennei Street, Dongcheng District,
Beijing, 100010
Tel: 86-10-58036298
Fax: 86-10-58036317/18/19
Contact: Zhao Jinman
Web: www.cphi-china.cn
Email: zhangxiong@cccmhpie.org.cn
2011 Foodtech & Pharmatech
Venue: Taipei World Trade Center Nangang
Exhibition Center
Date: June 22-June 25, 2011
Tel: (02)2725-5200 ext.2678
Fax: (02)2723-0036
2011 Taipei International Food Expo
Venue: Taipei World Trade Center Nangang
Exhibition Hall
Date: June 23-June 26, 2011
Add: Room 719, Ruichen International
Center, 13 Nongzhanguan South Road,
Chaoyang District, Beijing, China, 100125
Contact: Yu Huiyong (+86-13521761056)
Email: expo168@126.com
Summer International of Harbin China
Harbin
Venue: Harbin Ice and Snow World
Date: June 30-July 11, 2011
Exhibits: Beer Brands, Restaurant, Automobiles,
Real Estate, Financial Institutions.
Add: No.22, 2nd Fuwai Ave. Xicheng District,
100833
Tel: 86-10-68396327
Fax: 86-10-68396351
Contact: Ma Jianshe
Web: www.chinahxbeer.com
Email: majianshe327@163.com
2011 Guangzhou International Snack Food
Exhibition Guangzhou
Venue: Guangzhou Poly World Trade Expo
Pazhou Complex
Date: July 9-July 11, 2011
Tel: 86-20-26088888
Fax: 86-20-39751727
Contact: Long Wei (+86-13570282967)
Email: 253734799@qq.com
Packaging, Paper, Printing and
publication
2011 TAIPEI PACK
Venue: Taipei World Trade Center Nangang
Exhibition Center
Date: June 22-June 25, 2011
Tel: (02)2725-5200 ext.2678
Fax: (02)2725-2585

INFORMANTION
Investment Projects
in Northeastern China
Northern Scenery Feature Tourism Development
Zone Project in Heilongjiang Province (II)
Name of project: Qiqihar Jinwan International
Hot Spring Hotel
Project overview: Qiqihar Jinwan International
Hot Spring Hotel is under the
jurisdiction of Heilongjiang Yunjian Group
Company. Yunjian Group Company developed
a hot spring well, the depth of which is
1760m. Its overflow of ground water is 90m³/
h, with its temperature between 35 degrees and
40 degrees. The hot spring contains lithium,
strontium, zinc, sodium, potassium, calcium,
magnesium, iodine, metasilicic acid and many
other minerals that are beneficial to human
health. The PH value is 8.0, which is a type
of alkaline water a very rare type of hot spring
water. The Jinwan International Hot Spring
Hotel includes: hotel accommodation with
lake-view terrace and room service system; food
and beverage, complete food and beverage service
system; hot spring bath, swimming, sauna,
foot massage, indoor swimming pool and other
health-preservation leisure facilities; modern
and stylish multi-functional conference halls
at big, medium, small sizes have full-featured
structures, and the hotel basically covers six elements
of tourism, has meets main requirements
of holiday tourists and conference visitors, is
also in line with Qiqihar climate and other resources,
and has achieved intensity, large-scale
and humanization. Upon completion, the fivestar
Jiwan International Hot Spring Hotel will
be a first-class hot-spring themed hotel with the
most complete and most distinctive features in
Qiqihar City.
Total investment and source: The estimated
total investment of the project is UD$17.57
million, with the ratio of bringing-in investment
negotiable.
Cooperation means: Investment, joint venture,
share participation, etc.
Estimated economic benefit: After the project
is completed, the annual sales income will
reach RMB42 million and the annual profit
and the annual tax will be RMB19.20 million
and RMB 8.40 million respectively. Additionally,
300 job positions will increase.
Brief introduction to domestic
investor:
1. Name of investor: Hei-
longjiang Yunjian Group
Company
2. Address: Lakefront of
Labor Lake, North Street,
Jianhua District, Qiqihar
City. Postcode: 161000
3. Contact: Chen Yang
4. Tel: 86-13946281335
5. Fax: 86-452-8089985
6. E-mail: yunjianbao@163.com
Name of project: River Island Tourism
Development Project in Nierjisi Lake Scenic
Area, Nehe City
Project overview: Nierjisi Lake is located
in Nehe City, Qiqihar, which is 189km away
from the Qiqihar city and is formed by the
Nierji reservoir built with an investment of
RMB5.4 billion. Its area is 500 square kilometers,
forming a beautiful landscape with
wide expanse of misty waters of the No.1 Lake
in northern area. Now it has built a highstandard
professional skiing training area
and non-professional recreational skiing area,
and has become a skiing base for training of
professional players, amateur participation,
organized-participation of teenagers. As impoundment
water of the reservoir at 216.5 meters
of the sea level and above forms a centralisland
of the river and many other scenic spots,
we develop and construct the central-island
scenic spot, and have built national-lever water
rowing, sailing boat, motor boat, water skiing
and other training bases, carried out yacht, water
cycling, dragon-boat race, seaplane, water
walking ball, beach volleyball, beach soccer,
sunbathing place and other tourist entertainments,
creating it as a large-scale multi-functional
scenic spot integrating water, ice, snow,
mountains, plants with sports, ecotourism,
cultural tourism, summer resort, recreation
and entertainment and hunting. Construction
of this project will further improve all tourism
functions of Nierjisi Lake Scenic Area.
Estimated investment and source: Total
investment of the project is UD$14.64 million,
which is satisfied by the raised funds and
bringing-in funds, with the ratio of bringingin
investment negotiable.
Cooperation means: Joint venture, sole proprietorship,
cooperation.
Estimated economic benefit: After the project
is completed, the annual sales income will
reach RMB 10 million and the annual profit
and the annual tax will be RMB3 million and
RMB1 million respectively. It will not only
drive the development of trourism and other
industries, but also can be used as the national
sports training base and provide 200 job positions
for local people.
Brief introduction to domestic investor:
1. Address: Inside the Nierjisi Lake Scenic
Sport
2. Investor: Qiqihar Urban Investment Company
Postcode: 161000
3. Contact: Xu Jian
4. Tel: 86-452-2688539
5. E-mail: 2790607@163.com
Name of project: River Island Tourism
Development Project in Nierjisi Lake Scenic
Area, Nehe City
Project overview: Nierjisi Lake is located
in Nehe City, Qiqihar, which is 189km away
from the Qiqihar city and is formed by the
Nierji reservoir built with an investment of
RMB5.4 billion. Its area is 500 square kilometers,
forming a beautiful landscape with
wide expanse of misty waters of the No.1 Lake
in northern area. Now it has built a highstandard
professional skiing training area
and non-professional recreational skiing area,
and has become a skiing base for training of
professional players, amateur participation,
organized-participation of teenagers. As impoundment
water of the reservoir at 216.5 meters
of the sea level and above forms a centralisland
of the river and many other scenic spots,
we develop and construct the central-island
scenic spot, and have built national-lever water
rowing, sailing boat, motor boat, water skiing
and other training bases, carried out yacht, water
cycling, dragon-boat race, seaplane, water
walking ball, beach volleyball, beach soccer,
sunbathing place and other tourist entertainments,
creating it as a large-scale multi-functional
scenic spot integrating water, ice, snow,
mountains, plants with sports, ecotourism,
cultural tourism, summer resort, recreation
and entertainment and hunting.
Estimated investment and source: Total
investment of the project is UD$14.64 million,
which is satisfied by the raised funds and
bringing-in funds, with the ratio of bringingin
investment negotiable.
Cooperation means: Joint venture, sole proprietorship,
cooperation.
Estimated economic benefit: After the project
is completed, the annual sales income will
92

INVESTMENT INFO
reach RMB10 million and the annual profit
and the annual tax will be RMB3 million and
RMB1 million respectively. It will not only
drive the development of trourism and other
industries, but also can be used as the national
sports training base and provide 200 job positions
for local people.
Brief introduction to domestic investor:
1. Address: Inside the Nierjisi Lake Scenic
Sport
2. Investor: Qiqihar Urban Investment
3.Company Postcode: 161000
4. Contact: Xu Jian
5. Tel: 86-452-2688539
6. E-mail: 2790607@163.com
Name of project: The Construction & Development
Project of Yinhe Lake Scenic Area
in Gannan County
Project overview: The Yinhe Lake scenic
area is a scenic spot relying on spectacular
key water-control project, combining cultural
landscape and natural scenery. The scenic area
covers an area of 3600 hectares. It was developed
and constructed in 1994, and was determined
as fixed-point spot for foreign tourists
by Municipal Tourism Administration in
1999 and was approved as AA tourism scenic
spot at state-level in 2002. In the scenic area,
there are flood control dam, happy floodgate,
spillway, Yunqing garden, Jin Great Wall, forestry
bathing place etc. With green pine trees
and cypresses growing up to the sky, beautiful
sceneries of lakes and mountains, natural artificial
scenery, this area is a sparkling pearl of
Gannan County. 40,000 acres of lake provides
a broad space for water recreation, aquaculture,
breeding rare waterfowl as their habitats.
Through continuous development in recent
years now it has formed seven functional
areas, which are water-cruise area, park area,
key water control project area, area of forestry
bathing-place, ecological agriculture area, fishing
area, shooting area. Spring outing, summer
sightseeing, harvest of farmers in autumn,
winter skiing, it is the best choice of touring,
leisure and vacation.
Estimated investment and source: Total investment
of the project is UD$15.41 million,
with US$5.86 million raised by the company
itself and US$8.54 million from investment.
Cooperation means: Cooperation
Estimated economic benefit: After completion
of the project, the number of annual reception
tourists is over 800,000. The direct income
will be RMB20 million, which can motivate
the development of local transportation, food
service and other industries, and stimulate local
economic growth about RMB50 million.
Brief introduction to domestic investor:
1. Name of investor: Yinhe Reservoir Management
Office
2. Address: Gannan County Postcode:
162100
3. Contact: Ding Yunlong
4. Tel: 86-452-5621890
5.Fax: 86-452-5621892
6.E-mail: yhsk83012@163.com
Name of project: Willow Island Comprehensive
Development Project in Kiamusze
Project overview: Willow Island, an island
in the middle of Songhua River, is located at
the north of River Road in the center of Kiamusze
city. There are two branches in Willow
Island. The southern one is the main river, and
the northern one is the branch. There are large
tracts of manmade forest in the west and along
the river. The forest coverage reaches 34%. The
trees are mainly willows as well as some poplar
and birch, etc. In most of the low-lying area,
there are willow bundle. So the island is called
Willow Island. The area of Willow Island is
10.6 km 2 . The ground elevation of the island is
78m. The ground elevation in the southeast is
mostly 79m and 77m in the northeast. There
are three villages on the island: Shangliu village,
Xialiu village and Machang village.
The island has a population of 981, housing
construction area of 30,000 m 2 and cultivated
land of 303 hm 2 which are all dry land. The
rest land is grassland except woodland and arable
land. There are some villa and recreational
facilities for people to spend the vacation near
the city in the south of the Willow Island.
The area has been constructed as view area the
along the river. In order to meet the requirements
of drainage on the island, the water discharge
system, such as water discharge sluice
station, drainage channels and artificial lake
will be constructed.
Estimated investment and source: The
estimated total investment of the project is
UD$439 million, with the ratio of bringing-in
investment negotiable.
Cooperation means: Sole proprietorship,
joint venture, cooperation.
Estimated economic benefit: The area
available for development and utilization on
Willow Island is 6.36 square kilometers. According
to the land sale price after embankment
in other big cities along the river in
Heilongjiang province, the land added value
of Willow Island is estimated of 500 Yuan/m 2 ,
and 3.18 billion Yuan in all. The development
prospect is very cheerful.
Brief introduction to domestic investor:
1. Name of investor: Kiamusze Water Authority
2. Contact: Yu Haijiang
3. Tel: 86-454-8446643
4. Fax: 86-454-6103161
5. E-mail: bsguo@163.com
Name of project: The Infrastructure Construction
Project in Wudalianchi Town
Project overview: In order to build the international
low-carbon travel demonstration town
of five-lakes area, the leading tourism town in
Heilongjiang province and the international
community development model of the national
park, the basic facilities in the starting area will
be completed in 2015 according to the “Plan
for Five-lakes international low-carbon tourism
model town in Five-lakes scenic area”. The initial
city image will be formed. The effect of lowcarbon
will be shown. The new town near to
the springs will be the model town for low-carbon
tourism. The town will be gradually moved
from east to the west. We will try to build fivelakes
area as the a world famous tourism convalescence
base, a world famous mineral water
production base, scientific exploration base and
production base for mineral and green products.
The focus is on the three major industries of
tourism, convalescence, mineral water and their
extensions. The main functional areas include
the northern tourism service area, middle living
area and southern municipal industrial area.
Estimated investment and source: The
estimated total investment of the project
is UD$80.56 million, with US$51.27 million
of bringing-in funds and US$29.29
raised by the company itself.
Cooperation means: Joint venture, cooperation.
Estimated economic benefit: The estimated
annual output value will reach RMB920
million and the annual profit will be RMB300
million.
Brief introduction to domestic investor:
1. Name of investor: Heihe Wudalianchi
Scinic Spot Development & Construction
Co., Ltd.
2. Address: 1 Yaoquan East Road, Wudalianchi
Scinic Spot, Heihe City, Heilongjiang
Province Postcode: 164155
3. Contact: Xu Guiyan
4. Tel: 86-456-7222641 86-18904565009
5. Fax: 86-456-7222844
6. E-mail: 7222844 @126.com
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