U.S. Commercial Service - American Embassy, Beijing
Vol. 2 No. 135
The China Commercial Brief is a biweekly publication including summaries about developments in China's various commercial sectors, tips on doing business in China, and U.S. Embassy news. This publication is free of charge: please forward it to your colleagues and friends who are interested in China.
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Editor: Jennifer Chang
Contributors: CS Guangzhou, Michael Mei, Ying Bai, Ye Xu, Sherry Cai, Michael Wang
News Briefs
In addition to the article summaries provided by CS Beijing, our four China branch offices - Chengdu, Guangzhou, Shanghai and Shenyang - submit summaries of commercial articles from their local press to the CCB on a rotating schedule. This week we are pleased to feature a contribution from our Guangzhou post.
1. Guangdong to Invest US$2.63 Billion in Controlling Solid Waste Pollution
2. State Council Approves the Construction of New Power Plants
3. Beijing Invests RMB 600 million in Renovation of Historic Sites
4. China Banking Regulatory Commission to Revise Financial License System
5. Invest in China Website Launched
6.SARS to Stimulate China¡¯s Spending on IT and Communications Infrastructure
1. Guangdong to Invest US$2.63 Billion in Controlling Solid Waste Pollution
(Source: Zhujiang Environment News, 03/19/2003 - Translated by FCS Guangzhou)
The Guangdong Provincial Environment Protection Bureau has issued a new plan in an effort to effectively control solid waste pollution by 2010. The new plan includes 12 projects with a projected investment of nearly US$2.63 billion. It intends to reduce, reuse, and recycle solid wastes through the establishment of an integrated management control system in the province for handling and treating solid wastes.
Guangdong is faced with serious a solid waste pollution problem. According to government statistics, solid waste generated in Guangdong amounted to 46.34 million tons in 2000 (of which 27.68 million tons were domestic garbage; 16.4 million tons were ordinary industrial solid waste; 972,600 tons were dangerous waste including 426,000 tons of medical waste; 350,000 tons were used electrical appliances; 940,000 tons were plastics, packaging stuff and agriculture-used films). The province, however, only has the capacity to treat about 20 million tons of solid waste per year. About 14% of its domestic waste and 16% of its medical waste is disposed of annually. The capacity to treat hazardous and industrial solid waste is also seriously inadequate. A significant amount of solid waste was not treated properly, causing severe secondary pollution.
Under the new plan, solid waste will be divided into six categories, i.e., domestic waste; industrial solid waste; hazardous waste; deserted plastics, packaging stuff and agriculture-used films; used electric appliances; and medical wastes. Under an overall plan, the province will designate localities to establish comprehensive treatment facilities. Various types of solid waste will then be sent to the designated area for treatment.
Guangdong plans to restructure the pricing and management systems in order to raise funds for these projects. Enterprises of various ownerships will be encouraged to invest in the projects. Garbage disposal fees will be collected. The operations of the projects will be open to public tender and special commission.
2. State Council Approves the Construction of New Power Plants
(Source: China Electric Power News, 05/17/2003 - Translated by Michael Mei)
The State Council of China recently approved the construction of 13 large-scale power plant projects with a total investment of RMB 51.2 billion (USD 6.2 billion). The power plants, which will begin construction in the next two to three years, will have a total electricity generating capacity of 11.88 gigawatts.
Most of the planned power plants are situated in areas currently experiencing electricity shortages, including northern, central, eastern, southern and southwestern China. According to State Development and Reform Commission (SDRC), upon completion, the new power plants will help ease the demand for electricity supply in the next five years in China.
Since the beginning of this year, the Chinese government has sped up the construction of electricity-generating projects. More than 30 large-scale power plant projects have been approved, and the construction work on 17 of them has already begun. SDRC predicts that added electricity generating capacity in China will exceed 18.49 gigawatts this year, which will play an important role in relieving electricity shortages in the next two years.
3. Beijing Invests RMB 600 million in Renovation of Historic Sites
(Source: Market Daily, 05/17/ 2003 - Translated by Ying Bai)
The Beijing Government recently launched its cultural relics protection project to renovate and repair historic sites in Beijing. The RMB 600 million project funded by Beijing government is expected to be completed in 2007, in time for the Beijing 2008 Olympic Games.
There are 3,550 cultural relics and historic sites in Beijing amounting to a construction area of two million square meters. It is estimated that more than one third of these sites is in urgent need of renovation. A number of historic buildings are occupied by residents, schools, or factories, which make it difficult to protect and preserve them.
To restore the original layout of the city of Beijing, the municipal government will focus on the restoration and preservation of cultural relics and historic sites along the city's central line and Chaoyang and Fucheng Roads. The major projects within this area include restoring and renovating such sites and streets as, Shi Sha Hai, Guo Zi Jian and Liu Li Chang.
Beginning in 2008, the Beijing Government will provide RMB 330 million in three consecutive years to fund the repair of 98 historic sites including the Drum and Bell Towers, Yuan Ming Yuan Park and Xian Nong Tan (Temple of Agriculture).
4. China Banking Regulatory Commission to Revise Financial License System
(Source: International Finance News, 06/03/2003 - Translated by Ye Xu)
The China Banking Regulatory Commission (CBRC) recently issued the Financial License Management Rules, which will come into effect on July 1st, 2003. According to officials from CBRC, the Rules streamline the issuance, application, license exchange, management, announcement and public notice of financial licensing. The Rules focus on simplifying the administrative examination and approval procedures for obtaining a financial license; improves transparency of supervision and emphasizes servicing the public.
The Rules are composed of 20 articles and an appendix, namely the Financial License Code Scheme. It stipulates: the purpose of issuing the Rules, defines financial licenses, scope of application, issuance competence, issuance and license exchange procedures, content, announcement and public notice, charges and fines, and management of financial licenses.
Compared to the existing financial license system, the Rules simplify financial license content. It stipulates that the legal representative, business scope and expiration date are no longer included in the content of the financial license. CBRC will issue financial licenses, with unified format, to all financial institutions under its supervision. The Rules state that licenses will no longer be issued in duplicate, and will no longer require inspections or establish limited terms of validity. A financial license will only be issued once per an institutional or business application and will be valid for the long term. The Rules stipulate the issuance competence, public service content and supervision terms. People can search information on financial licenses through CBRC's official website.
5. Invest in China Website Launched
(Source: Beijing Business Today, 06/02/2003 - Translated by Sherry Cai)
According to the Ministry of Commerce. The website Invest in China http://www.fdi.gov.cn was officially launched on June 1, to provide authoritative information services to foreign investors.
This bilingual website has developed columns for China's Economy, Rules and Regulations, Investment Trends, Opportunities, Services, Consulting, Statistic, Research, State Development Zones, News and Company Search, etc.
Based on several large-scale databases, Invest In China provides information on: policies and laws, industry developments, investment administration, FDI statistics, investment institution, investment services, FDI invitation projects, multinational investment and related Chinese government contacts.
Any questions about this website should be directed to the Ministry of Commerce:
Add: No.2 Dong Changan Avenue, Beijing China (100731)
Tel: (86-10) 67091362 (86-10) 65197303
Fax: (86-10) 67091359 (86-10) 65197322
E-mail: tangxl@mofcom.gov.cn shenqi@mofcom.gov.cn
6.SARS to Stimulate China's Spending on IT and Communications Infrastructure
(Source: FCS Beijing, Contributed by Michael Wang and Cameron Werker)
SARS has put business in Beijing on hold for at least the last two months. Following the World Health Organization's (WHO) travel warning to Beijing, most international as well as domestic travelers have either postponed or cancelled trips to Beijing. According to the report released by Beijing Statistic Bureau on May 26, 2003, Beijing's tourism industry declined by 72 percent in April compared against the same period last year. Other businesses heavily impacted by SARS include restaurants, retail, aviation and public transportation, as well as consulting and legal services. However, the IT and telecom service industry saw greater revenue increase during SARS.
SARS stimulates the use of Internet and Telecom Services
However, SARS has brought about a surge in business related to virtual life. Internet and telecom service providers are among those businesses that have seen increase in business due to SARS. As more and more people realized the dangers of SARS, they began avoiding congested areas and became increasingly worry about face-to-face business meetings. Schools closed and many businesses allowed their staff to telework. In order to communicate, people turned to other forms of communications such as Internet, teleconference and video-conference to carry on their daily businesses, which resulted in dramatic business increase for IT and telecom service providers. According to a report in the May 13th edition of Beijing Youth Daily, one of the most influential newspapers in Beijing, the revenue Beijing Telecom, the dominant telecom service provider in Beijing, generated from local calls increased by 60 percent in April while Internet service by 40 percent and long-distance by 50 percent. From April 19 to May 11, 66 new subscribers signed up for teleconference and video-conference service, representing a three-fold increase. Business Weekly, in mid-May, reported that customers of China Unicom sent out 1.2 million short messages per day in late April, 500,000 more than the pre-SARS average of 700,000 messages per day. In Guangdong, said a report in May 30th edition of Ren Min You Dian, the usage of teleconference in March-April increased by 50 percent over that in January-February. Most of the users are government agencies and large enterprises.
As China was forced to deal with the unfortunate affects of SARS, the IT and telecom service industry provided alternative and safe options for completing tasks vital to China¡¯s overall economy and well-being. When business returns normal, Chinese customers may start purchasing equipment and solutions, described herein, in the first quarter of 2004. Equipment or solutions that are economical and easier to plug into more applications and services will have more sales opportunities. (For full text of the report, please contact Michael Wang at Jianhong.Wang@mail.doc.gov )
Embassy News
CS Shanghai Hosts Wetlands Seminar On May 19, CS Shanghai hosted a promotional seminar for Pennsylvania-based BioChem Technology, Inc. The seminar focused on Wetlands management, wastewater treatment and ecological rehabilitation. 20 environmental and wetlands experts attended the event, including representatives from the Shanghai Environmental Protection Bureau, the Academy of Environmental Sciences and East China Normal University. Shanghai Dongtan Wetland international Co., Ltd, a subsidiary of Shanghai Industrial Investment Co., Ltd, co-organized the event and will be developing a large wetland conservation center on Chongming Island outside of Shanghai.
CS Shanghai Hosts Packaging Machinery Institute Agents' Meeting On May 22, CS Shanghai co-hosted a workshop with the Packaging Machinery Manufacturers Institute, one of our cooperators in the U.S Commercial Center in Shanghai. 25 Chinese companies attended the event, including a number of agents for U.S. firms, and focused on ways to improve communication between U.S suppliers and Chinese buyers, market trends and challenges.
U.S. Donations Help Fight SARS Two U.S. firms are donating product to the local marketplace to help fight SARS and promote their firms. (1) The National Renderers Association requested assistance from CS China to introduce a middle school soap donation program to a potential collaborator, the New Hope Group; and (2) Maine-based IDEXX has donated 5,000 water and wastewater microbiology test kits in Beijing, and plans to do the same in Shanghai, Chengdu and Guangzhou. After contacting CS China to discuss the projects, CS representatives began contacting appropriate local authorities to facilitate the donations for SARS prevention.
Consulate News: Guangzhou
In keeping with our goal of making the CCB a more integrated publication, our four China branch offices - Chengdu, Guangzhou, Shanghai and Shenyang - submit consulate news to the CCB on a rotating schedule. This week, we are pleased to feature a contribution from CS Guangzhou:
CS Guangzhou, together with the Shenzhen Foreign Affairs Office, organized a roundtable meeting between the Shenzhen municipal government and U.S.-invested companies in Shenzhen. Held on May 15, 2003 in Shenzhen, the roundtable was designed as a forum for U.S. investors in the city to interact with leaders of the municipal government to understand the latest situation with SARS and to discuss commercial issues that were important to the U.S. companies.
Over 20 representatives from major U.S.-invested companies participated in the meeting, including Air Products, AIA Insurance, Citibank, DuPont, Emerson, IBM, Intel, Microsoft, McDonald¡¯s, PricewaterhouseCoopers, Wal-Mart, American Chamber of Commerce in Guangdong, etc. Shenzhen Vive Mayor Wang Suiming, whose portfolio includes foreign investment and trade, and key officials from the Health Bureau, Economic and Trade Bureau, Bureau of Foreign Trade and Economic Cooperation, Education Bureau, and Foreign Affairs Office attended. Participants from the U.S. Consulate Guangzhou included Consul General John Norris, Commercial Consul Eric Zheng, and several other officers.
For more information on CS Guangzhou and the Guangzhou consular region, visit our website at http://www.buyusa.gov/china/en/guangzhou.html
DISCLAIMER: CS China does not guarantee the veracity of the original sources of our news summaries. While we do our best to report accurate and timely articles and news sources, you should always check the source for further information.
The China Commercial Brief is a free newsletter published by the U.S. Embassy- Beijing.
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INTERNATIONAL COPYRIGHT, U.S. COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2002. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.