Economy/Resources - 248. page

Hong Kong Exchange (HKEx) Chief Executive Li Xiaojia recently commented that Hong Kong should seize the opportunity to participate in the internationalization of the RMB in the next ten years. He believes this will provide Hong Kong a big chance for development. It will enhance Hong Kong’s status of an international financial center. Li believes HKEx should take 3 steps: (1) Establish a basic infrastructure such as a settlement system; (2) Offer RMB-based financial products at the right time; (3) Improve the service level and risk management. Li believes the RMB has already started to be a regional settlement currency, and it will be an investment currency. In the end it will become an international reserve currency.

Source: Xinhua, January 25, 2010
http://news.xinhuanet.com/gangao/2010-01/25/content_12873554.htm

Winter in the year 2009 brought China strong shortages of energy due to unusually cold weather. The National Energy Administration explained the situation giving four primary reasons: (1) the low water level in the middle and lower reaches of the Yangtze River; (2) rapid recovery of China’s macro economy in Q4 of 2009; (3) the low stock level of coal, as well as a bottleneck in railway capacities; (4) a sharp increase in consumer demand caused by the fact that most of the regions were attacked by rainy and snowy weather.

Actions being taken by the authorities are: (1) increasing the coal gas production level; (2) increasing the supply of natural gas by expanding the volume of imports; (3) speeding up the construction of Natural Gas Storage and Adjustment Facilities.

Source: Xinhua, January 22, 2010
http://news.xinhuanet.com/fortune/2010-01/22/content_12858478.htm

Although China’s annual car sales topped the world at 13.5 million in 2009, it is too early to celebrate.
The real winners, according to the author, are actually foreign companies.

China’s automotive industry depends heavily on foreign companies to supply parts. Especailly regarding auto electronics, engines, and transmissions, foreign company’s market share is 90% .

China has yet to have its own brand. Its advantage in automotive production is low cost laborers. he profit margin is quite low. Without its own brands, China’s astronomical auto sales volume can only help others.

Source: China Business Times, January 20, 2010
http://www.cbt.com.cn/a/lilunpinglun/pangguanzheqing/2010/0120/6346.html

The German Federal Bureau of Statistics predicted in December 2009 that German exports in 2009 would reach US$1,170 billion, while China would exceed US$1,200 billion. As the number one export country in the world, China may face more protectionism from other countries.

The greatest pressure may come from the U.S., which took a number of steps in 2009, claiming anti-dumping and anti-subsidy activities. Chinese economists believe that U.S. protectionism is “absurd” because the US-China trade deficit is the result of the U.S. refusal to sell China high-tech products. Another major pressure source is the EU, which also initiated a great number of anti-dumping investigations against China in 2009. In addition, a number of actions were taken by Argentina, India, Brazil and Mexico against China. It is believed that protectionism initiatives against China will continue to increase. 

Source: Xinhua, January 12, 2010
http://news.xinhuanet.com/fortune/2010-01/12/content_12797144.htm

The CCP Central Party School’s newspaper, Study Times, recently republished an article on the current policies on  land usage. Today in China, people know that the government’s income comes largely from charges based on the state owned land. Most countries in the world create value out of utilizing land, such as producing high quality agriculture products. Indirect and sustainable creation of the national value based on land reflects the true value of land. In China, land is now more of a “private” stock item for real estate resale. The simple relationship between some government officials and real estate developers provides soil for corruption. The people believe it is the system and the policies that caused the situation.

Source: Study Times, December 21, 2009
http://www.studytimes.com.cn/WebPage/ny1.aspx?act=1&id=3145&nid=11430&bid=12&page=1

Xinhua News Agency signed a Strategic Cooperation Framework Agreement with China Petrochemical Corporation (aka. Sinopec Group) on December 29. In the agreement China Petrochemical signed up for the “Xinhua 08” service platform, which is a financial information and trade services system that Xinhua developed. The system integrates real time news, market quotes, historic data, research tools, analytical models and financial trade into one platform. Xinhua News Agency defines its mission as “guiding” domestic public opinion and “positively influencing” international public opinion. This new agreement is the first step in an expansion of the agency’s traditional business scope to include the information services area.

Source: Xinhua, December 29, 2009
http://news.xinhuanet.com/fortune/2009-12/29/content_12723681.htm

In a meeting on December 31, 2009, the National Development and Reform Commission (NDRC) and the Ministry of Industry and Information Technology (MIIT) announced a halt to approvals of new coke, carbide, methanol, and other traditional coal chemical projects. 

The Chinese Academy of Social Sciences (CASS) evaluated, ranked, and published in its yellow book of eleven countries on economic and international standing, ranking China a "7."  

CASS published its report on December 24, 2009. The U.S., still considered a super power, was clearly ranked number "1," followed by Japan in second place and Germany in 3rd place.  

The evaluation criteria was based on five main and four secondary factors: 1) territory and natural resources, population, economy, military, and science; and 2) social development, sustainability, security and domestic politics, and international contribution.

China is ranked 2nd concerning military power. Its population is a contributor to its overall ranking.

Source: China Internet Press Center, December 24, 2009
http://www.china.com.cn/news/2009-12/24/content_19123633.htm