China Economy Forum

[LeveragedBuyout]

It is on the way to some contries. Will developed countries or origin countries buy cars made by us?

If your cars pass our safety tests, then yes. Will they sell well? That depends on the marketing strategy.

For better or worse, in the United States, "China = cheap" is the prevailing stereotype. Someday, China may achieve the same reputation for quality that the Germans and Japanese have, but it will take time. The Korean car manufacturers have been trying for two decades and aren't quite there yet, although Hyundai is getting close.

 

[cirr]

Peugeot venture sets up in west China

AFP

JULY 05, 2014 2:00PM

French auto group PSA Peugeot Citroen has chosen to build its fourth factory in China with its new shareholder Dongfeng at Chendgu, a town in the west of China, the group said on Wednesday.

The two partners already own three factories in the country, at Wuhan in the centre with capacity to make 750,000 cars per year.

Construction of the fourth plant is to begin in the second half of this year and will increase the group's total Chinese capacity to one million vehicles in 2016, PSA Peugeot Citroen said in a statement.

The new facility will focus on making crossover vehicles -- a cross between a car and a sport utility vehicle -- and also four-wheel-drive vehicles under the Peugeot and Citroen brands, and also under the name Fengshen which is a brand owned by Dongfeng.

The Chinese government is encouraging car manufacturers to build new factories in the west of the country so as to boost development of backward regions.

PSA and Dongfeng are aiming to sell more than 650,000 vehicles this year in China, already the biggest auto market in the world with growth still growing rapidly.

This would rise to 1.5 million by 2020 as a result of their increased cooperation which recently involved Dongfeng becoming a shareholder in PSA.

At the same time the French state also became a shareholder, and the holding of the Peugeot family was diluted.

The group is struggling out of severe financial difficulties, and is increasingly focusing on China as it seeks to diversify away from the mature European market.

PSA has another joint venture with the Chinese group Changan at Shenzhen in the southeast of the country which makes the up-market Citroen DS cars.

Originally published as Peugeot venture sets up in west China

 

[cirr]

Shanghai Disneyland

Construction Update June 24, 2014

Shanghai Disneyland - photographed, reviewed and rated by The Theme Park Guy

 

[Jlaw]

Shanghai Disneyland

Construction Update June 24, 2014

Shanghai Disneyland - photographed, reviewed and rated by The Theme Park Guy

Seriously ? Is it going to work? HK's disneyland is a failure.

China, Germany join hands to drive growth - Headlines, features, photo and videos from ecns.cn|china|news|chinanews|ecns|cns

China, Germany join hands to drive growth

Merkel's visit opens opportunities for investment, economic development

Premier Li Keqiang welcomed visiting German Chancellor Angela Merkel on Sunday and said the China-German relationship is "breaking ground on a high level".

Observers said what is behind Merkel's visit is efforts by the world-leading exporters to address their domestic economic challenges and seek economic growth from cutting-edge sectors.

Before flying to Beijing on Sunday evening, Merkel spent part of the day in China's southwestern city of Chengdu as the first stop of her China tour.

Cui Hongjian, director of the Department for European Studies at the China Institute of International Studies, said the priority of Merkel's trip is to seek stronger support and weather the storms of the domestic economy.

Berlin is "fighting to maintain domestic economic growth", while Beijing is faced with declining external confidence, Cui said.

Premier Li expected the two sides to "strengthen bilateral communication and coordination in major international and regional affairs".

Beijing considers improving people's livelihood a top priority and China's development requires a peaceful environment, he told Merkel.

"I am looking forward to the official meeting tomorrow with the chancellor to promote bilateral political mutual trust, and deepen beneficial cooperation in fields including economy and trade, finance, sustainable growth and culture," Li said.

Merkel said stronger bilateral cooperation benefits both sides and the world, and Berlin is willing to seek closer contact with Beijing on international issues to jointly ensure world peace and development.

Germany is China's largest trading partner in Europe, while China is Germany's biggest in the Asia-Pacific region. Two-way trade stood at $161.6 billion last year, accounting for nearly one-third of the trade between China and the European Union.

The two countries are expected to "unveil a range of detailed cooperative programs" during the visit to bring about pledges in financial and eco-friendly sectors, Cui said.

Before her trip ends on Tuesday, Merkel will meet with President Xi Jinping and top legislator Zhang Dejiang.

As the Chinese president paid an official visit to Germany in late March, observers were amazed to find that the upcoming meeting between the leaders was made within four months.

Mei Zhaorong, former Chinese ambassador to Germany, said China and Germany are joining hands in seeking free global trade and fighting trade protectionism, although there are also doubts about the good ties.

"There have been some questioning voices within the European Union because the China-German relationship is growing fast. ... Some of them are trying to alienate the two sides. There is jealousy behind it," Mei said.

The in-depth and comprehensive relationship is presenting a good example and a good lead for the China-EU relationship, Mei added.

 

[LeveragedBuyout]

Smart, gradual moves by China.

The Expanding Offshore Renminbi | The Diplomat

The Expanding Offshore Renminbi
Offshore trading of China’s currency is growing rapidly.

By Sara Hsu
July 07, 2014
As China continues to lower barriers to its capital account, offshore renminbi (RMB) trading markets have grown substantially, guided in their establishment and encouraged in their development by Chinese leaders. The People’s Bank of China appointed RMB clearing banks in London and Frankfurt in June. South Korea also agreed last Thursday to foster its offshore RMB market by introducing direct trading between the won and the RMB. The People’s Bank of China also announced days ago that it would set up RMB clearing banks in Paris and Luxembourg. The presence of offshore RMB markets has facilitated cross-border trade to some extent, and going forward will help to ensure that, by the time China liberalizes its capital account and exchange rates, its currency can flow worldwide without hindrances due to a lack of “financial plumbing.”

The offshore RMB market first emerged in 2004, in Hong Kong. Starting in 2009, China allowed the RMB to flow outside of the country for use in payment for goods and services or particular investment purposes. In July 2010, dim-sum bonds, or Chinese currency-denominated bonds, became issuable outside of China and Hong Kong. The offshore RMB is designated as CNH (as opposed to the domestic CNY) and has become increasingly traded. Since 2009, many countries have attempted to build up their offshore RMB centers.

The offshore RMB market in Hong Kong is the largest. According to Reuters, RMB deposits in Hong Kong measured in at 955.8 billion RMB ($153.85 billion) in May, while RMB deposits in Singapore were at 220 billion RMB ($35.43 billion) at the end of March. RMB deposits in Taiwan were 290 billion RMB ($46.71 billion) at the end of May. Other regions are actively attempting to enhance their status as offshore RMB markets. Many nations have increased their RMB liquidity through cross-border operations of banks, while more than twenty nations have RMB bilateral swap agreements in order to provide RMB liquidity to local entities.

The RMB derivatives market is growing. The Chicago Mercantile Exchange Group, the Hong Kong Exchange, and the Singapore Stock Exchange have become involved in the RMB derivatives market, which includes CNH forwards, options, cross-currency swaps, and interest rate swaps. CNH forwards usually include relatively short 1-3 month tenors, and this market has demonstrated strong liquidity and competitive pricing. The CNH currency market includes both vanilla and complex options, with tenors from 1 month to 5 years, as well as cross-currency swaps, with tenors from 3 months to 10 years. Interest rate swaps are available but are somewhat less liquid.

The offshore RMB market is nascent and faces several barriers to growth. For one, the offshore RMB market continues to be constrained in investment opportunities. Currently, Chinese companies are able to use the CNH for foreign direct investment outside of China, while the converse is true for international companies; funds can also be used for investment in Mainland China through for RMB Qualified Foreign Institutional Investors. In general, investment in dim-sum bonds is permitted. However, dim-sum bonds lack credit ratings, which obscures their level of risk and quality, and the issue size of these bonds is small relative to onshore bonds. The latter is in large part a product of restrictions on the bodies that can issue dim-sum bonds.

The offshore RMB market, with more development, will nonetheless assist the Chinese leadership in reaching some of its financial goals. The leadership confirmed at the National People’s Congress in March that one main target of the reform process is to liberalize the exchange rate; People’s Bank of China Governor Zhou Xiaochuan confirmed that this would be completed by 2020. To this end, the offshore RMB market provides financial infrastructure through which to exchange, hold, and speculate upon the Chinese currency. China is also aiming to further liberalize the capital account. While the extent to which the leadership is willing to go to open up to foreign capital flows is unknown, the offshore RMB market creates a base for foreign holdings of the RMB. As the capital account opens further, increasing amounts of RMB currency transactions and holdings are given a foothold via offshore RMB centers. While the CNH and CNY currencies have diverged in value, it is expected that with further capital account liberalization, the currencies will over time converge, making offshore RMB markets a critical component of a developed financial system.

The ultimate aim of Chinese authorities in establishing offshore RMB markets is to promote the RMB as a major international currency. The RMB is currently the seventh most-used payments currency in the world. However, the RMB accounted for only 1.47 percent of global payments in May, and has a long way to go before it overtakes heavily used currencies such as the euro, the Swiss franc, or even the Canadian dollar. Expansion of offshore RMB markets is a key step in this process, and happily, both international regions and the Chinese leadership are in favor of this move.

 

[Edison Chen]

Premier Li Keqiang has declared initial victory in boosting the economy but analysts warn of persistent risks.

Li's comment on Thursday that the economy did better in the second quarter adds to market expectations of an economic rebound. It comes on the heels of gauges such as a purchasing managers' index that show economic activity has picked up after Beijing accelerated infrastructure investment, loosened credit and trimmed taxes for small businesses.

"The economic situation in the second quarter improved a bit from the first," Li said at a meeting with leaders from Hunan, Fujian, Shandong and Henan provinces. "This reflects the significant elasticity, potential and room for manoeuvre in economic operation."

But he added the continuing downward pressure on the economy could not be ignored.

This was Li's latest round of talks with local officials. Last month, he urged eight city and provincial leaders to work out plans to stem any economic downturn. Provinces including Heilongjiang and Sichuan have since rolled out aggressive projects worth hundreds of billions of yuan.

The government is to release the quarterly gross domestic product figures on July 16. The economy in the first quarter grew 7.4 per cent from a year earlier - an 18-month low - and 1.4 per cent from the previous quarter.

Beijing has vowed to meet annual targets, which include keeping the growth rate at about 7.5 per cent and creating 10 million jobs.

Excessive capacity and sluggish overseas demand have dragged down growth from a peak of more than 10 per cent in the past, with cooling property prices emerging as a major source of concern of late.

UBS Securities economist Wang Tao predicted economic growth of 7.5 per cent for the second quarter, saying more policy easing would be needed this year, partly due to a high comparison base.

"Headwinds from the ongoing property slowdown are likely to intensify later this year and into the next year," Wang said.

 

[cirr]

China June CPI rises 2.3 pct y/y, slightly less than forecast

BEIJING, July 9 Tue Jul 8, 2014 9:40pm EDT

(Reuters) - China's consumer prices rose 2.3 percent in June from a year earlier while producer prices fell 1.1 percent, official data from the National Bureau of Statistics showed on Wednesday, largely in line with market expectations.

Economists polled by Reuters had expected annual consumer inflation to ease slightly to 2.4 percent from 2.5 percent in May, and factory-gate prices to fall 1 percent after a decline of 1.4 percent in May.

Month-on-month, consumer prices fell 0.1 percent versus a forecast of no change. (Reporting by China Economics Team; Editing by Kim Coghill)

China June CPI rises 2.3 pct y/y, slightly less than forecast| Reuters

 

[Aepsilons]

China’s premier says country’s economy improving



BEIJING (AP) — China’s premier says the country’s economy improved in the latest quarter but faces “downward pressure.”

Premier Li Keqiang, China’s top economic official, said Monday that the government will avoid “strong stimulus” but increase the strength of targeted measures to shore up growth.

Speaking at a news conference with visiting German Chancellor Angela Merkel, Li promised to push ahead with market-opening reforms.

China’s economic growth slowed to 7.4 percent in the first quarter over a year earlier. Li gave no indication how much stronger growth in the three months that ended in June might have been. Those data are due out next week.

Li said, “China’s economic performance in the second quarter has been improved from that in the first quarter. However, we cannot lower our guard against downward pressure.”





China’s premier says country’s economy improving | Asian Correspondent

 

[Edison Chen]

New state policy aims to relieve financial difficulties holding back rooftop installations

​

Beijing plans to increase the subsidy on power sales by rooftop solar farm developers to state-owned power distributors by up to 55 per cent, and compel the latter to act as an agent for collecting power bills if the developers directly sell to local customers.

The consensus plan was reached after a meeting two weeks ago among state-backed financial institutions, bank regulators and the National Energy Administration (NEA).

It is aimed at relieving financing difficulties that have hindered installations, and is pending final approval by Beijing, United Photovoltaics Group chief project officer Zou Deyu told a media teleconference.

"The top energy and financial authorities have agreed to the plan, but we are still waiting for the policy documents which are expected to come out soon," Zou said. United, which posted a 50 per cent rise in second-quarter power output from the first quarter, is a Hong Kong-listed unit of state-backed ports-to-property conglomerate China Merchants Group.

Currently, rooftop projects are entitled to a state subsidy of 42 fen (53 HK cents) per kilo-watt-hour (kWh) of output, on top of whatever prices developers manage to get from end-users. These are typically factories in buildings atop which solar farms are built.

If the developers fail to sell all of their output to local users, local power grid operators are obliged to buy the remainder at prices that typically vary from 35 fen to 45 fen per kWh.

Zou said the new policy will allow the rooftop projects developers to receive a total revenue of 95 fen to one yuan per kWh, matching that of ground-mounted projects. This means the rooftop subsidy could rise by 31 to 55 per cent from the current 42 fen, sharply boosting their viability.

The NEA has set a 14GW target for installations of solar farms this year, up from 12.9GW last year. Some 8GW of the target is for rooftop projects, and 6GW for ground-mounted ones, mostly in remote areas.

However, less than 2GW of rooftop projects were installed in the first five months of this year as banks were reluctant to lend owing to difficulty in getting long-term obligations from local end-users.

To address this, Zou said Beijing plans to compel local grid firms to provide the commitment and act as the collection agent in exchange for a fee.

 

[Edison Chen]

China will exempt electric cars from purchase taxes as part of expanded government measures to combat pollution.

Authorities will exclude new-energy autos -- China’s term for electric cars, plug-in hybrids and fuel-cell vehicles -- from the taxes starting September 1 this year until the end of 2017, according to a statement posted on the central government website today, citing a State Council meeting.

The step is meant to promote energy savings and emission reduction as well as boosting domestic demand, the notice said. The auto-purchase tax is 10 percent in China. Chinese Premier Li Keqiang has promised to ban dirtier vehicles to alleviate worsening smog that increasingly blankets major cities and to reduce dependence on imported energy.

Five years after China began promoting new-energy vehicles, fewer than 70,000 are on its roads, lagging behind a government target of 500,000 by 2015, according to comments from Vice Premier Ma Kai posted on Chinaev.org website in April.

Separately, China will speed up development of the insurance industry by encouraging it to support infrastructure construction, the government said in today’s statement. Qualified insurance companies are encouraged to invest in the pension industry, it said.

 

[Edison Chen]

China’s Exports Rise 7.2% as Imports Rebound From May’s Decline

By Bloomberg News Jul 10, 2014 12:15 AM CT

China’s exports trailed estimates in June, suggesting support for growth from global demand will be limited as leaders try to defend their economic-expansion goal of about 7.5 percent this year.

Overseas shipments gained 7.2 percent from a year earlier, the customs administration said today in Beijing, compared with the 10.4 percent median estimate in a Bloomberg News survey of economists. Imports rose 5.5 percent, leaving a $31.6 billion trade surplus.

Weaker-than-anticipated trade would compound threats to the world’s second-largest economy from a property slump and rising debt, putting pressure on the Communist Party to consider stronger stimulus. International Monetary Fund chief Christine Lagarde said this week that world investment spending remains lackluster, signaling the institution will cut its global growth forecasts this month.

“External demand can support China’s economy, but that support isn’t strong,” said Chen Xingdong, chief China economist at BNP Paribas SA in Beijing. “To drive China’s growth we still have to go back to the domestic market.”

In South Korea, the central bank today cut its forecasts for that nation’s economic growth for this year and next. Asia’s fourth-largest economy will expand 3.8 percent in 2014, the Bank of Korea said, down from a previous estimate of 4 percent.

Yuan Intervention
The yuan has weakened about 2.3 percent this year against the dollar, the worst performance among 11 major Asian currencies tracked by Bloomberg, trading at 6.1961 per dollar as of 12:33 p.m. local time today.

As top Chinese and U.S. officials met in Beijing, Finance Minister Lou Jiwei said yesterday that the nation can’t stop intervention in the yuan because economic growth is too weak and capital flows aren’t steady enough to warrant changes. Central bank Governor Zhou Xiaochuan said today that intervention will be cut “noticeably” once conditions are ready.

China’s export growth will accelerate this quarter from the previous period, the customs administration said in a statement. Government policies have helped boost exporters’ confidence and supported a recovery in trade, Zheng Yuesheng, a spokesman for the agency, said at a briefing in Beijing. There are signs that exports so far in July have been “very good,” he said, without elaborating.

Analysts’ Forecasts
Estimates for exports from 47 analysts ranged from a decline of 1.3 percent to an increase of 17.6 percent, following May’s gain of 7 percent. The median projection for imports (CNFRIMPY) was for a 6 percent increase, within a range of a 0.5 percent drop to a 14.3 percent jump. Imports fell 1.6 percent in May from a year earlier.

The trade surplus was projected at $36.95 billion, based on the median estimate of economists.

China’s trade data were distorted in the first few months of this year after figures in early 2013 were inflated by falsified invoices used to disguise capital flows, triggering a government crackdown on the practice.

The issue of inflated trade data may not be finished. The State Administration of Taxation said yesterday that it found instances of fraudulent exports used to obtain tax rebates by some companies.

Economic Improvement
Premier Li Keqiang said July 7 that while China’s economic performance in the second quarter improved from the previous period, the nation can’t lower its guard against downward pressure and will increase the strength of targeted measures. China won’t adopt strong stimulus and can achieve annual goals of economic and social development for 2014, Li said at a press conference with German Chancellor Angela Merkel in Beijing.

China’s economy has shown signs of stabilization after measures dubbed a “mini-stimulus” by some analysts. Factory-gate prices fell in June at the slowest pace in more than two years, according to government data released yesterday. Two gauges of manufacturing rose to the highest levels this year, reports showed on July 1.

China will release second-quarter gross domestic product data on July 16. The economy probably grew 7.4 percent from a year earlier, the same pace as the previous three months, according to the median estimate of analysts in a Bloomberg News survey in June.

China’s Exports Rise 7.2% as Imports Rebound From May’s Decline - Bloomberg

China Said to Probe Alleged Bank of China Money Laundering

By Bloomberg News Jul 10, 2014 4:13 AM CT

China’s central bank and currency regulator are investigating a state media report that alleged Bank of China Ltd.broke rules on transferring money overseas, two government officials familiar with the matter said.

The probe focuses on whether Bank of China violated regulations in its operations or aided money laundering, the people said, asking not to be named as they aren’t authorized to speak publicly on the matter. Starting an investigation doesn’t mean the Beijing-based bank has done anything wrong, they said.

Bank of China, the nation’s largest foreign-exchange lender, yesterday denied a report by China Central Television claiming that it circumvented the rules by helping customers transfer unlimited amounts of yuanoverseas and convert it into other currencies through a product called “Youhuitong.” The bank said it introduced a cross-border yuan transfer service in 2011 with the knowledge of authorities.

Chinese foreign-exchange rules cap the maximum amount of yuan that individuals are allowed to convert into other currencies at $50,000 each year and ban them from transferring yuan abroad directly. Policy makers have taken steps in recent years including allowing freer movements of capital in and out of China as they seek to boost the global stature of the yuan.

Not Compatible
“China’s foreign-exchange restriction is no longer compatible with the growing economy and the drive to make the yuan a global currency,” Chen Xingyu, a Shanghai-based analyst at Phillip Securities Research, said by phone today. “Loopholes and irregularities may occur during the deregulation process, but that doesn’t mean the direction is wrong.”

A press officer for Bank of China didn’t immediately respond to a request today for comment on the probe. The State Administration of Foreign Exchange didn’t immediately reply to a fax seeking comment.

People’s Bank of China Governor Zhou Xiaochuan said it’s too early to comment on the state television report. “First of all, we need to know what’s really going on,” he said at a briefing in Beijing during the U.S.-China Strategic and Economic Dialogue today.

Shares of Bank of China in Hong Kong fell 0.9 percent to close at HK$3.46, while the benchmarkHang Seng Index (HSI) added 0.3 percent. The stock slid 2.8 percent yesterday, the most on the Hang Seng Finance Index, following the CCTV report.

‘Underground Bank’
Media reports referring to “an ‘underground bank’ and ‘money laundering’ are inconsistent with the facts,” Bank of China said in a statement on its website yesterday. The cross-border yuan transfer service only allows money to be moved for emigration and overseas property investment, it said.

Youhuitong targets customers who wish to invest in or migrate to North America, Australia and some European countries, CCTV reported, referring to documents shown by unidentified Bank of China employees.

Bank of China’s service complies with regulatory principles and was started after notifying relevant authorities, the lender said in yesterday’s statement. Many commercial banks in the southern province of Guangdong offered similar services under a trial program, it said.

The currency regulator’s Guangdong branch in 2012 picked Bank of China, China Citic Bank Corp. (998) and a foreign lender to let individuals transfer yuan abroad as part of efforts to promote global use of the currency, Time Weekly reported in April 2013. Banks were told not to promote the trial, which took place at a few branches in Guangdong, the report showed.

Potential Misunderstanding
“The secrecy might have led to the potential misunderstanding,” Ming Tan, a Hong Kong-based analyst for Jefferies LLC, wrote in a note today. “We do not believe BOC, as a big state-owned bank, will conduct a business illicitly for such a small earnings benefit, notwithstanding potential misconduct by some staff.”

Tan estimated that the earnings contribution from Youhuitong is likely to be less than 1 percent.

“The relevant branches of the bank have put in place robust business operation procedures in compliance with the relevant regulatory and anti-money laundering requirements,” Bank of China said yesterday. With more Chinese companies and people going global, use of the yuan across borders is an “irreversible trend,” it said.

Founded in 1912, Bank of China held a monopoly on the nation’s foreign-exchange dealings and overseas banking from 1949 to 1994. That legacy left it with the biggest overseas business, which accounted for about 26 percent of its assets at the end of last year, data compiled by Bloomberg show. Bank of China is the clearing bank for the yuan in Hong Kong, Macau, Taipei,Malaysia, Luxembourg and Frankfurt.

China Said to Probe Alleged Bank of China Money Laundering - Bloomberg

 

[Edison Chen]

China to take measures to promote judicial independence: Xinhua

(Reuters) - China will act to promote judicial independence over the next five years with measures including specialized tribunals for environment and intellectual property cases, state media reported on Wednesday.

President Xi Jinping's administration has sought to weed out corruption in courts, but critics say the ruling Communist Party pays only lip service to independence of judicial organs because courts ultimately answer to Party authorities.

The official Xinhua news agency, quoting a plan released by the Supreme People's Court, said superior courts will henceforth be able to set up circuit courts to handle complex cases as well as tribunals specializing in environmental or intellectual property issues. Current handling of specialized cases is often marred by lack of subject-matter expertise among judges.

The Supreme People's Court appointed a senior judge to head a newly formed tribunal in charge of environment and resources cases last month.

"The reform will be focused on efforts to remove some deep-rooted problems affecting the capability and fairness of the country's judicial system," Xinhua said, quoting the court document it said was issued at a press conference on Wednesday.

At present local officials can often influence court decisions in their jurisdictions. Miscarriages of justice caused by abuses of official power have stoked public discontent.

Xinhua said that trial judges' right to issue rulings independently would now be "further guaranteed". It provided no specifics, although it said judgments would no longer need to be signed by courts' chief justices.

Local courts' finances will be managed separately from money and goods they collect as litigation fees, fines and forfeitures, Xinhua added.

The high court document also addresses courts' budgets as well as selection of personnel. Special committees to choose justices will be set up at province-level courts, Xinhua said.

(Reporting by Megha Rajagopalan; Editing by Mark Heinrich)

China to take measures to promote judicial independence: Xinhua| Reuters

Very good news. China's judicial system is screwed up by Zhou Yongkang. Some people in China and Indian posters on PDF believe the so called democracy could save a country, totally BS. China is country ruled by people, not law, so judicial independence should come first.

 

[xuxu1457]

A new airport on the top of mountain in Guangxi Province put into use Jun 9，Architects razed several mountain summit to the ground after the construction of a long 1.4 miles (about 2.2 km) of the runway, Building time：2008.12-2013.12

 

[sweetgrape]

China's third-largest hydropower station in full operation - People's Daily Online

CHENGDU, July 10 -- China's latest hydropower station started full operations on Thursday in the border region of southwest China's Sichuan and Yunnan provinces, according to its operator, China Three Gorges Corporation.

The Xiangjiaba hydropower on the Jinsha River in Sichuan's Yibin County and Yunnan's Shuifu County has a capacity of 6.4 megawatts - eight generating sets of 800,000 kilowatts each, the world's biggest per-unit capacity. The station can generate 30.9 billion kwh of electricity a year.

Xiangjiaba is the country's third-largest station after the Three Gorges and Xiluodu.

 

[Aepsilons]

This is a very good idea, i think. What say you, @LeveragedBuyout , @Chinese-Dragon , @Edison Chen , @sahaliyan , @Okemos , @xunzi ?

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SHANGHAI—China announced new subsidies and other inducements Sunday to get government officials and agencies to buy energy-efficient vehicles in a renewed boost for a sector Beijing has had high hopes for.

Under the new rules, which will be phased in over the next two years, electric cars, hybrids that run on gasoline and electricity and other new energy vehicles will account for no less than 30% of all new cars bought for official use each year, according to a notice from the country's main economic planning agency, the Finance Ministry and three other government agencies.

The notice said subsidies will be offered to government and public agencies for purchases of vehicles that cost less than 180,000 yuan ($29,186), subsidies included. Local governments will be asked to build charging stations and other needed infrastructure, said the notice, which was posted on the government's website.

The Chinese government has been trying to promote use of new energy vehicles for the past five years, seeing them as a way to reduce pollution and as an emerging technology Chinese businesses might be able to conquer.

The government previously set a goal of having 500,000 plug-in hybrid and electric vehicles on the road by next year and five million by 2020, though it is far from meeting the target. Sales of new energy vehicles reached 17,642 units last year, up around 38% year-over-year, according to the China Association of Automobile Manufacturers. By contrast, around 18 million passenger cars were sold in China last year.

German auto maker BMW AG BMW.XE +0.71% expects China to become the world's largest market for electric vehicles in five years. Several local auto makers are active in developing new energy vehicles, including BYD Co. 002594.SZ +0.69% and SAIC Motor Corp. 600104.SH +0.26% , General Motors Co. GM +0.53% 's joint venture partner in China.

The new measures' target for official fleets is likely to give a bump to the sector. Purchases of official vehicles in China run between 70 billion yuan (around $8.3 billion) and 80 billion yuan a year, less than 5% of the country's overall annual passenger-car demand according to estimates from consultancy Automotive Foresight.

The new measures follow last week's announcement that car buyers will be exempt from a 10% vehicle tax when they purchase certain new energy vehicles and other fuel-efficient automobiles.

Last year, the Finance Ministry said buyers of electric cars will receive up to 60,000 yuan ($9,700) in subsidies while buyers of certain gasoline-electric hybrids may get as much as 35,000 yuan.

Cities, where the growth in car ownership is contributing to choking pollution, are also offering inducements. In late June, Beijing said it would add 10,000 public charging poles by 2017. Earlier this year, Shanghai announced plans to give 3,000 free license plates to buyers of imported electric cars, exempting them from a bidding system that drives up license plate prices to more than 70,000 yuan.


http://online.wsj.com/articles/chin...cials-to-buy-energy-efficient-cars-1405275633