Economy/Resources - 221. page

China News Service reported on January 27, 2011, that, according to the China Gold Association, China’s gold production in 2010 set a new world record at 341 tons. This represents an 8.6% increase from 2009. China has thus remained the world’s top gold producer for the fourth year in a row since it overtook South Africa in 2007. More than 500 counties in China produce gold. The gold industry has become the key industry and a major source of income for over 100 counties. The top five gold producing provinces are Shandong, Henan, Jiangxi, Yunnan, and Fujian. Collectively, they produce 60% of the national output. China’s gold market is also very strong. In 2010, China consumed 510 tons of gold for jewelry production, use in industry, and investment.

Source: China News Service, January 27, 2011
http://www.chinanews.com/fortune/2011/01-27/2817180.shtml

Source: International Herald Leader, January 17, 2011
http://news.xinhuanet.com/herald/2011-01/17/c_13694069.htmchina’s      

China Review News published an interview with Xie Yonghai, Executive Vice President of the Bank of China and Chairman of the Hong Kong Chinese Securities Association. Xie stated that, “The current international monetary system based on the U.S. dollar is biased. China, given its present economic wherewithal needs to become a greater international power.” Xie pointed out that getting regional adoption of the renminbi is the key to internationalizing the renminbi. China has signed treaties with countries on renminbi exchange and free trade. Agreements about the regional adoption of the renminbi are being made with countries in Southeast Asia, South Asia, North Asia, and possibly Latin America, where China is working with Brazil and Argentina.

“Hong Kong will play a major role as the off-shore renminbi trading center.” Xie predicts that “within five years, Hong Kong’s renminbi trade volume will reach 8 trillion yuan. By then, the renminbi will become the third most popular currency in the world, after the dollar and the euro, and part of the IMF’s SDR.”

Source: China Review News, January 24, 2011
http://gb.chinareviewnews.com/doc/1015/7/8/1/101578140.html?coluid=10&kindid=253&docid=101578140&mdate=0124002018

The “2011 World Economy Analysis and Forecasts” published a report by the World Economy and Politics Center of the China Social Science Academy. The report noted a rapidly increasing trend, which is that Chinese companies are acquiring more assets overseas. State-Owned-Enterprises (SOEs), including Petro China, Sinopec, CNOOC, the Baosteel Group, and CHALCO, were the leaders in these acquisitions. The sectors most coveted are those in the extraction industry. Chinese companies acquired 91 companies with a value of US$32 billion between 2005 and mid-2010. Chinese companies made purchases in other industries: Geely (automaker) bought Volvo for US$1.8 billion and Sany Group (a machinery manufacturer) built plants in Germany. Morgan Stanley’s report showed that, by the first half of 2010, China became the second largest overseas acquirer of assets after the U.S.

“However, more than 50% of the overseas acquisitions were not successful after the acquisition, i.e., they didn’t generate more money for the parent company.”

Source: China Youth Online, January 24, 2011
http://zqb.cyol.com/html/2011-01/24/nw.D110000zgqnb_20110124_2-10.htm

Since last year, China has adopted a new policy of diversification in order to handle the huge amount of its foreign reserve. The latest data shows that China’s foreign reserve is $US 2.8473 trillion. In 2010, China’s foreign reserve increased by $US 448 billion. Therefore, in the short term, China has increased its investment in the national debts issued by South Korea and Japan. As a long term strategy, China is going to put more of its reserve into European countries.

Another notable change in China’s foreign reserve policy is to allow Chinese citizens to invest directly in foreign countries. China is making this policy adjustment because, in recent years, China’s sovereign funds have encountered suspicion and barriers when trying to acquire overseas enterprises. China’s large, state owned enterprises will be the main foreign investors. At the same time, China will provide foreign currency loans to private companies and encourage and support more of China’s private enterprises in acquiring foreign companies.

Source: Xinhua, January 17, 2011
http://news.xinhuanet.com/herald/2011-01/17/c_13694069.htm

China News Service (CNS) recently reported that, in 2010, China became Brazil’s largest investor – up from the 20th in 2009. In 2010, the estimated total investment from China was US$12 billion. The amount invested between 2001 and 2009 was only US$213 million. Chinese investments in Brazil have focused on the energy, mining, steel, and oil industries. Brazil is planning to invest US$1 trillion over the next few years to prepare for the Olympics and the World Cup. China considers this to be an opportunity. Brazil’s Stock Exchange is working with Chinese stock exchanges to allow Chinese companies to do IPOs in Hong Kong and Brazil simultaneously. The Brazilian economy has demonstrated very strong growth in the past decade.

Source: China News Service (CNS), January 12, 2011
http://www.chinanews.com/cj/2011/01-12/2783792.shtml

China will require passengers to provide their names when purchasing a train ticket. The passenger will then have to show an ID with the same name to board the train. During the massive railway travel season for the upcoming Chinese New Year, Guangzhou, Wuhan, Xi’an, Chongqing, Chengdu, and many other cities will initiate a name verification pilot project.

Twenty-five types of proof of identity will be accepted, including a residential card, a temporary residential card, a driver’s license, a military officer ID, a student ID, a passport, an alien residence card, and a temporary ID card issued by the Railway Police Office.

Source: People’s Daily Online, January 11, 2011
http://travel.people.com.cn/GB/13701643.html

On December 21, 2010, People’s Daily reported that, according to the State Council, the portion of the South-to-North Water Transfer Project that was completed by the end of November 2010 came to around RMB 74 billion, which is 45% of the total amount allocated by the investment plan. The project is now entering a critical peak time period for construction work and residents’ migration work. The current speed at which the project is moving has demonstrated a possibility of early completion. Part of the work going on today is going to determine whether water will be delivered to the North on time or not. The completed portion of the project is already producing value to some areas of China, mainly Beijing.

Source: People’s Daily, January 1, 2011
http://finance.people.com.cn/GB/13635942.html