The State Council met on April 22, 2009 to discuss stimulus measures to stabilize the Chinese agricultural sector amid the international financial crisis, reported Xinhua. Premier Wen Jiabao presided over the Council’s executive meeting. The meeting reached a consensus that the international financial crisis is deepening and its negative impact on the Chinese agricultural sector is emerging. With global commodity demand shrinking and prices falling, the downturn of agricultural exports coupled with slack domestic growth has pushed down agricultural prices and production efficiency in China, making it increasingly difficult to maintain a stable agriculture sector and to increase farmers’ income.

Source: Ministry of Agriculture, April 23, 2009
http://agri.gov.cn/jjps/t20090423_1260834.htm

Economists are concerned that the growth may not be sustainable, according to a panel discussion during a State TV program. Large State-owned enterprises saw a sharp increase in profits, according to Li Rongrong, Director of State-owned Assets Supervision and Administration Commission of the State council on April 19, 2009. In response, economists at the panel indicated that such growth was primarily fueled by preferential treatment and State monoply, thus its sustainability questionable. Others found it worrisome that 4,200 small to mid companies have been declining in contrast to the thriving large State-owned enterprises.

Source: China Central TV, April 24, 2009
http://news.cctv.com/china/20090424/101947.shtml

Mr. Xi Xiaoming, a senior official of the Chinese Supreme Court, recently said there has been a steady increase in withdrawal of foreign investments. Domestic private enterprises also face challenges due to the global financial crisis. 

A statement by the Chinese Ministry of Commerce indicates that the total foreign investment in January was $7.5 billion, a decrease of 32.6% compared to the same period last year.

Source: EpochTimes, April 18, 2009
http://www.epochtimes.com/gb/9/4/18/n2499031.htm

China National Radio reported that China and Russia signed an intergovernmental agreement on oil cooperation in Beijing on Tuesday. Under the intergovernmental agreement, China will provide a $25 billion loan to Russia, Russia will use oil as collateral. Russia will sell China 15 million metric tons of oil from 2011 to 2030, using the East Siberia-Pacific Ocean (ESPO) pipeline.

Energy Resources are currently the number one target of China’s overseas investment. Since the beginning of 2009 China has signed several "loan for oil" cooperation agreements with other countries, including a $10 billion loan to Brazil on February 18, a $4 billion loan with Venezuela on February 21, and a $1 billion loan with Angola on March 13. On April 5, President Correa of Ecuador announced a possible deal of exchanging crude oil for a $1 billion loan from China.

On April 16, China National Petroleum Corporation signed a contract to provide a $5 billion loan to Kazakhstan’s KazMunaiGaz National Co. to jointly buy AO Mangistaumunaigas, an oil and gas company in Kazakhstan.

Source: China National Radio, April 21, 2009
http://www.cnr.cn/gundong/200904/t20090421_505310249.html