U.S. Commercial Service - American Embassy, Beijing
Vol. 2 No. 139
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, Shujuan Cao, Shen Yan, Peng Aiqun, Xu Ye, Qiu
Jing
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.Pearl River Delta Begins Desulphurization Construction Projects
2.China Internet Users Have Reached 68 million
3.China's Economic Growth Falls In The 2nd Quarter
4.China to Maintain Stability of RMB - Minister Lu Fuyuan
5.China's Promising Mobile Phone Market
6.Cable TV Price Hike Gives Rise to Heated Debate
1. Pearl River Delta Begins Desulphurization Construction Projects
(Source: Guangzhou Daily, 07/29/2003 - Translated by FCS Guangzhou)
Shajiao Power Station, one of the largest coal-fueled power plants in China, will begin construction of desulphurization measures soon, and another 19 thermal power plants in Guangdong are also scheduled to begin desulphurization construction this year.
Shajiao Power Station consists of Plants A, B, and C. It discharged 71,100 tons of sulphur-dioxide in 2001, accounting for one-tenth of the total emission in Guangdong. Sulphur-dioxide has become a major cause of acid rain pollution in the Pearl River Delta.
Shajiao Plant A is installing desulphurization equipment, which is expected to be put into operation in March 2004; feasibility studies for Plants B and C have been either approved or completed. The complete desulphurization project of the Shajiao Power Station with a total installed capacity of 3.88 million KW is expected to be operative by 2005 or 2006.
There were 610 units of thermal power generators in Guangdong by the end of 2001 with annual emission of nearly 600,000 tons of sulphur-dioxide. As a result, about 63 per cent of land area in Guangdong including 17 cities has been affected by acid rain.
Guangdong province issued the Blue Sky Project Plan years ago in order to reduce the discharge amount of sulphur dioxide. Among the 33 sulphur dioxide treatment projects under the Blue Sky Project Plan, eight projects have been completed, three are under construction, and the rest are scheduled to start construction in 2005 and finish by 2007. This year, 19 thermal power plants have been chosen to start desulphurization projects. At present, the on-going desulphurization projects include Huangpu Power Plant, Guangzhou Power Generation Plant, Yuancun Heat and Power Plant, Taishan Power Plant, Guangzhou Paper Mill’s Heat and Power Station, Guangzhou Ruiming Power Plant, and Hengyun Power Plant.
2. China Internet Users Have Reached 68 Million
(Sources: CNNIC, 07/22/2003 - Translated by Shujuan Cao)
On July 21, 2003 China Internet Networking Information Center (CNNIC)
announced that China's internet users reached 68 million at the end of June
2003. This usage figure is second highest in the world, trailing only the
United States. As a way to gauge the meteoric rise in internet usage,
official 1997 statistics reported the figure as 620,000; by the end of 2000
the figure was only 8.9 million.
Among the 68 million internet users, 23.4 million users connected to the
internet via leased lines (LAN users, which connects the Ethernet, 45
million via dial-up, 4.9 million via ISDN, and 9.8 million via broad band
(ADSL,Cable Modem). Note that the total number of users by method of
connection exceeds the 68 million total users because the report double
counts users that reported accessing the internet at the office and at
home. According to the CNNIC’s report, 25.72 million computers are
connected to the Internet in China. There are almost 473,900 websites,
including 250,651 websites with the domain suffix of ".cn.’’
China’s total bandwidth of international gateway equaled 18599Mbps.
Listed below are the bandwidth of China’s organizations.
Network (Organization) Bandwidth
China scientific Net (CSTNET) 55Mbps
China Telecom (CHINANET) 10959Mbps
China Education & Scientific Research Net(CERNET) 324Mbps
China Unicom (UNINET) 1435Mbps
China Network Communication (CNCNET) 2112Mbps
(CNCNET Holding company)
Board Band China,China169 (China Network) 3465Mbps
China International Economic Trade Net (CIENET) 2Mbps
China Mobile Communication (CMNET) 247Mbps
China Great Wall New (CGWNET) Under construction
China Satellite Net(CSNET) Under construction
CNNIC reported that Chinese people usually spend 13 hours a week surfing
the Internet. The period from 8 pm to 11 pm experiences the highest use.
The major reason to access the internet is reportedly to obtain information
or have fun. The report also shows that 28.6 percent of interviewees used
the Internet for leisure, only 0.2 percent of the respondents picked online
shopping and e-business as their main activity online.
3. China's Economic Growth Falls In The 2nd Quarter
(Source: Beijing Daily, 07/18/2003 - Translated by Shen Yan)
China’s GDP grew 6.7 per cent in the second quarter of this year compared
with a year ago – the lowest for the period since 1992, due to the outbreak
of SARS. However, the country’s GDP still rose a year-on-year 8.2 per cent
to 5 trillion yuan (USD602 billion) during the first half of this year.
According to statistics released by the State Statistical Bureau, the
service industry only saw a growth of 0.8 per cent in the second quarter, a
dip of 6.1 percentage points compared with that of the same period last
year. Retail sales rose 6.7 per cent in the quarter, far lower than the 9.2
per cent rate achieved in the first quarter of this year.
As per Yao Jingyuan, Chief Economist of SSB, in spite of SARS, China is
capable of meeting this year’s growth target of 7 per cent. The relatively
fast pace of economic development in the first half of this year was mainly
because of rapid growth in fixed assents investment and exports. Fixed
assets investment grew a year-on-year 31.1 per cent during the first half
of this year to 1.93 trillion yuan (USD232.5 billion) and exports rose a
year-on-year 34 per cent to USD190.3 billion.
4. China to Maintain Stability of RMB - Minister Lu Fuyuan
(Sources: Financial News, 07/25/ 2003 - Translated by Peng Aiqun)
China will maintain the value of RMB in line with the fundamental interests
of the Chinese people and China's national economy, Chinese Minister of
Commerce Lu Fuyuan said at a July 24 press conference following the closing
of the 5th Asia-Europe Meeting Economic Ministers' Meeting.
Minister Lu said, "In terms of economic adjustment, every country has the
same four objectives, i.e., to maintain economic growth, increase
employment, expand export while at the same time to balance income and
expenditure, and to maintain stability of domestic currency. China's major
task at present is to maintain stable economic growth. The current policy
of maintaining the value of the currency, however, does not rule out future
adjustments or changes."
Minister Lu stressed that currency policy adjustment should be based on a
country's domestic situation first. No country in the world makes currency
adjustment decisions based on the international situation alone, without
analyzing its domestic situation.
People's Bank of China is China's central bank that decides on the currency
policy, and has clearly stated the issue. Governor Zhou Xiaochuan
reaffirmed China's policy favoring a stable RMB in a speech posted on the
central bank’s website on July 14, 2003.
5. China's Promising Mobile Phone Market
(Source: International Business Daily, 07/30/2003 - Translated by Xu Ye)
It is estimated that by 2003, the number of mobile phone users in China
will be 258 million. That figure will reach 339 million by 2005, and 405
million by 2007. The average growth rate will be about 15% in three to
five years.
Last year, penetration rate of mobile phone in China is 16.19% compared to
global figure of 22%. It is estimated that the global mobile phone
penetration rate will be 28% by 2005.
According to an official form the Ministry of Information Industry (MII),
the number of mobile phone users in China will grow steadily and China will
become a giant for mobile phone development, manufacture and sales.
6. Cable TV Price Hike Gives Rise to Heated Debate
(Source: Legal Daily, 07/28/2003 - Translated by Qiu Jing)
Though approved by pricing regulators, the hike of some cable TV charges in
Beijing has triggered a heated public debate in the nation's capital.
Gehua, a cable TV network in the capital city of Beijing, raised its
monthly cable TV charges by 50 percent from 12 RMB (US$1.5) per household
to 18 RMB (US$2.2) beginning July 1. The move approved by the Beijing
Municipal Pricing Bureau affects 2.2 million household subscribers.
A subscriber took the network to court, demanding it return the overcharged
money, citing the network's decision as unilateral without a public
hearing.
The consumers' association in Beijing municipality also filed an inquiry
with the pricing bureau, requiring it to explain the matter. The bureau
held that cable TV charges are not listed among public hearing items as
they only cover a tiny part of residents’ consumption.
According to the Law on Pricing, charges for public utility services,
including cable TV, should be decided after public hearings.
Embassy News:
Automation Alley CS Beijing is organizing and recruiting for a Reverse
Trade Mission to Automation Alley near Pontiac, Michigan August 18-22.
Automation Alley has received an MDCP grant from the Department of Commence
for the past couple years and has brought several trade missions to China.
As part of the program, CS Beijing, Automation Alley, and the Pontiac
Commercial Service District Office conducted a video market briefing for 23
of the Automation Alley companies. This video briefing was designed to
introduce the U.S. companies the China market and to allow for pre-reverse
trade mission questions and answers. To date, CS Beijing has recruited
over 50 Chinese participants to travel to Automation Alley, 19 are
postively confirmed. CS Chengdu also supported the recruitment effort by
screening candidates in their district. FSN Merry Cao will accompany the
Chinese business delegation to the U.S.
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.
QUALCOMM Inc. held a CDMA product exhibition in Guangzhou on July 18, 2003
in conjunction with the opening of its Guangzhou office. QUALCOMM is best
known as the company that pioneered the CDMA technology, which is now used
in wireless networks and handsets all over the world. The company’s digital
and wireless innovations are transforming many industries. Known as a
founding father of the CDMA technology, QUALCOMM Chairman and CEO Dr. Irwin
Jacobs attended the opening of the CDMA show in Guangzhou and pronounced
the opening of QUALCOMM’s office in Guangzhou. Principal Commercial
Officer Eric Zheng and Commercial Representative Kent Guo of CS Guangzhou
attended the ceremony in support of QUALCOMM’s marketing efforts in South
China. Prior to the ceremony, they also met with Dr. Jacobs, Vice Mayor of
Guangzhou Lin Yuanhe, QUALCOMM China Chairman Jing Wang and President Frank
Meng.
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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