The China Monitor - The Centre for Chinese Studies

The China MonitorAugust 2009Duke Energy teams with China Huaneng on cleanenergy Duke Energy Corp. has signed amemorandum of understanding with China’s largeststate-run power company, China Huaneng Group, toexplore joint projects on energy issues, includingcarbon control. The agreement is the first betweenmajor U.S. and Chinese power companies. Theagreement is nonbinding, but the memorandum saysDuke and Huaneng “may explore the possibility offorming a formal business relationship.”Sinochem agrees US$ 878.2 million strong buy ofEmerald Energy China's state-run Sinochem Corphas agreed to buy British oil and gas explorer EmeraldEnergy Plc (EMEN.L) for about US$ 878.2 million incash, the companies said. "Emerald's Syrian andColombian assets have attractive growth potential and,by bringing Emerald into the Sinochem group, willreinforce our position in the Middle East and SouthAmerica," said Han Gensheng, president of Sinochem.American Graduates Finding Jobs in ChinaShanghai and Beijing are becoming new lands ofopportunity for recent American college graduates whoface unemployment nearing double digits at home.Even those with limited or no knowledge of Chineseare heeding the call. They are lured by China’s surgingeconomy, the lower cost of living and a chance tobypass some of the dues-paying that is common tofirst jobs in the United States.Jamaica, China Pursuing Stronger BusinessPartnerships President of Jamaica Trade and Invest(JTI), Robert Gregory, along with Deputy DirectorGeneral of the China Council for the Promotion ofInternational Trade (CCPIT), Du Zetian, and ViceChairman of the CCPIT, Dong Songgen (right),attended a meeting between members of a Chinesedelegation and local private sector leaders at theoffices of Jamaica Trade and Invest (JTI) in Kingstonrecently to discuss possible strengthening of businessties between both countries.Taiwan-China Economic Ties Boom, MilitaryTensions Remain Longtime political foes Taiwanand China have seen their economic ties improvedramatically since Taiwan President Ma Ying-jeoustepped into office last year. But even as thatrelationship flourishes, China's tough military stancetoward the island remains the same.China Mobile Sees Profits Drop; 3G Growth HasBeen Slow China Mobile’s profit dropped in thesecond quarter for the first time in a decade. Theworld’s largest phone company by market value said itrecorded a net income of US$ 4.4 billion, falling fromUS$ 4.6 billion a year earlier. The carrier still managedto add 15.96 million users in the three months endingJune 30, compared with 22.5 million a year earlier. Thegiant’s efforts to promote a homegrown Chinese 3Gstandard have made little progress however. So far,3G subscribers have only passed the one-million markand growth looks slow moving forward.China announces iron ore deal with AustraliaminerChina announced aniron ore supply contractrecently with a smallerAustralian miner in anapparent effort to prodglobal producers toaccept lower prices inPhoto: textually.orgdeadlocked contracttalks. Australia's Fortescue Metals Group will sellChina iron ore for 94 U.S. cents per dry metric ton, thestate-sanctioned China Iron & Steel Associationannounced. That is below the price of 97 U.S. centsagreed to with Japanese and Korean mills for thisyear's supplies and that major suppliers wantedChinese mills to accept.China slow to invest in expensive LatAm farmlandResource-hungry China has so far passed overinvesting in high-priced farmlands of South America infavor of Africa, with its less developed commoditiesmarkets, greater need for financing and open laborlaws. Overall Chinese direct investment in LatinAmerica has been small but on the rise, according areport by the Latin America and Caribbean EconomicCommission (ECLAC). So far, China’s interest in theregion has focused on oil and metals, not agriculture.Air China DoublesProfit on Fuel-Hedging; Sales FallAir China Ltd., theworld’s biggest carrierby market value, morethan doubled first-halfPhoto: Boeingprofit as fuel-hedginggains offset plunginginternational travel. Net income surged to US$ 422million from US$ 180 million a year earlier, the carriersaid in a Hong Kong stock exchange statement. Salesfell 9.6% to US$ 33.8 billion.Foreign Direct Investment in China Fell 35.7% inJuly Foreign direct investment in China fell for a tenthstraight month in July as companies stalled expansionplans amid the global financial crisis. Investmentdeclined 35.7% from a year earlier to US$ 5.36 billion,the Commerce Ministry said at a briefing in Beijingtoday. That compared with a 6.76% drop in June.© Centre for Chinese Studies, University of Stellenbosch; All Rights Reserved12