China Economy - News & Updates

[oct605032048]

Chinese auto market overtakes US as world's largest
By Li Fangfang (China Daily)
Updated: 2010-01-09 07:39

 

[oct605032048]

unit:100 million USD
items of last(right hand) 3 columns: ASEAN as total, China, Percentage of China compared with ASEAN(ASEAN as 100%)
items of first(left hand)11 columns: year, Brunei, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, Vietnam.

 

[oct605032048]

Made in China.
350KT oil tanker to have maiden voyage in Guangzhou.
?????????? ????????3?(?)_??_???

 

[xuxu1457]

JANUARY 11, 2010
China's Exports Turn Upward in December
Jump of 18% Marks the End of More Than a Year of Declines; Imports Also Soar, Fueled by the Country's Stimulus Programs

By J.R. WU
BEIJING -- Exports from China turned upward in December, resuming growth after 13 months of declines, in the latest sign of improvement in global trade.

View Full Image

Agence France-Presse/Getty Images

Chinese workers prepare for their shift at the Yangshan container port in Shanghai, in June. China's exports surged in December, ending 13 months of declines. Imports soared 56%.
The change of direction came a year after Chinese leaders embarked on a massive domestic investment-led stimulus program to offset the global erosion of demand for its exports, a key driver of China's economic growth.

The shift in focus was evident in December's trade data: While exports appeared to have turned the corner, rising 18% from the year-earlier month, imports grew even more, up 56%, reflecting China's stimulus-fueled appetite for raw materials. Crude-oil imports set a monthly record, and those of iron ore were the second-highest recorded.

This trend also showed in the annual trade surplus, which shrank for the first time in six years.

More
China Dethrones Germany as Top Exporter For the year, exports fell 16% to $1.202 trillion and imports slid 11.2% to $1.006 trillion, data issued Sunday by the General Administration of Customs showed. It was China's first annual export decline since 1983, when exports fell a mere 0.4%. While the rest of the world took even harder hits from the global slowdown, the effects of the crisis have marked Chinese leaders' thinking about accelerating the economy's drivers away from exports and toward domestic consumption.

Still, the sharp December trade improvement in China -- which overtook Germany last year as the world's largest exporter -- suggests a strong expansion in China's economy in the final quarter of 2009, after the 8.9% expansion in the third quarter, and is likely to stoke debate about when Beijing will start to wind down its stimulus policies.

"Growth in exports is expected to be strong in the coming months due to steady improvement in external demand combined with low base effects. Continued recovery in China's industrial sector should support increased demand for energy and raw material imports," said Jing Ulrich, chairman of China equities and commodities at J.P. Morgan.

Economists said a continued rise in exports might increase the government's willingness to let its currency rise in the coming months. Critics say Chinese exporters enjoy an unfair advantage in global markets because the yuan is undervalued, and trade tensions between China and its key trading partners have escalated in recent months.

"Positive export growth will ... likely increase the global pressure on Beijing to allow some currency appreciation, while also making it easier to justify such a move to domestic audiences," said Royal Bank of Canada Capital Markets senior strategist Brian Jackson.

China's December exports surged to $130.7 billion as imports grew to $112.3 billion, resulting in a trade surplus for the month of $18.4 billion, customs data showed.

Economists polled by Dow Jones Newswires had expected exports to grow 5% and imports to increase 31% in December. China's exports last grew on a year-on-year basis in October 2008 before the global financial crisis sharply eroded demand at the tail end of 2008.

China's trade surplus last year topped $196 billion, falling 34% for the year and recording its first annual drop since it fell 16% in 2003.

In the fourth quarter, China's trade surplus totaled about $61 billion, greater than the roughly $39 billion of the third quarter, likely bolstering China's foreign exchange reserves and its money supply into the end of the year. China's central bank is due to issue the reserves and lending data early this week.

China's crude oil imports hit a record 21.26 million metric tons in December, equivalent to 5.03 million barrels a day, the data showed, partly on a push by state-owned refiners to have enough fuel in reserve ahead of the Lunar New Year holiday next month.

For all of last year, crude oil imports rose 14% to 203.79 million tons, likely cementing China's place as the second-largest importer of crude oil after the U.S. in 2009, overtaking Japan, whose oil demand stagnated when its economy slid into recession.

China's commodity imports trumped expectations of a winter slowdown, underscoring an unabated hunger for key industrial products.

China imported 62.16 million metric tons of iron ore in December, 80% more than a year earlier and the second highest volume on record, the data showed. Iron ore imports were up 22% from the month before.

For the full year of 2009, China imported 627.78 million tons of iron ore, up 42% from 2008.

The high import volume points to traders and steelmakers moving to stock up on the steelmaking ingredient, ahead of market expectations that annually-set benchmark prices are poised to rise some 20%.

For the year, China's trade with the European Union, its top trading partner, fell 14.5% to $364 billion as exports to the EU slumped 19% to $236 billion. China's trade with the U.S., its second largest trading partner, sank 11% to $298 billion as exports fell 12.5% to $221 billion.

China's Exports Turn Upward in December - WSJ.com

 

[grey boy 2]

China, Saudi Arabia to boost trade - People's Daily Online Jan 12 2010

Bilateral trade between China and Saudi-Arabia could "far exceed" the goal of $60 billion by 2015 and further strengthen trade ties with the Middle Eastern region, said experts yesterday.

During his recent trip to Saudi Arabia, the world's major oil exporter and also the largest oil supplier to China, Minister of Commerce Chen Deming said "both sides want to increase trade volume to $60 billion by 2015 after the target of $40 billion (for 2010) was reached ahead of time in 2008".

"It (the goal) is a conservative estimate. There is high possibility that the China-Saudi Arabia trade would far exceed the target by 2015, as bilateral relations are getting stronger and the two nations' industries are highly complementary," said Tang Zhichao, director of Middle East Studies with China Institute of Contemporary International Relations.

During the 2003-08 period, China-Saudi Arabia trade registered annual growth rates of 30 to 50 percent. In 2008, bilateral trade surged by 64.7 percent to $41.8 billion, two years ahead of the goal set in 2006.

Trade between the two regions during the first half of 2009 was only $12.71 billion, hurt largely by the global financial crisis. The figure for last year is expected to "fall from a year earlier", said Zheng Dayong, China's former ambassador to Saudi Arabia.

"This is the best time for growth in China-Saudi Arabian trade," he said.

China exports textiles, mechanical and electrical products to Saudi Arabia, still in small volumes, but imports large quantity of crude oil from Saudi Arabia, leading to a trade deficit with the Arab nation. China's crude oil imports rose by over 12 percent last year to 800,000 barrels per day.

"The deficit situation cannot be changed in the short term," Zheng said.

During 2009, China's crude oil imports increased by 13.9 percent to 200 million tons, but the price on average fell by 39.4 percent to $438 per ton, said the Customs.

Saudi Arbaia's Finance Minister Arabia Ibrahim al-Assaf said his country wants to increase "exports of oil and non-oil products to China" and "boost bilateral investments". He also said both countries hoped to "end a conflict over anti-dumping measures imposed by China on some petrochemicals products."

Source: China Daily

 

[grey boy 2]

HK toy exports earn 88.55 billion HK dollars - People's Daily Online Jan 11 2010

Hong Kong's toy exports went down 10 percent to 88.55 billion HK dollars (11.35 billion U.S. dollars) in the first 11 months of 2009, according to figures released by the Hong Kong Trade Development Council Monday at a toys and games fair.

Toy exports to Russia fell 57.1 percent while exports to Czech rose 58.2 percent. Exports to the U.S. dropped 23.6 percent and that to the European Union dipped 8 percent.

As for baby products in the first 11 months of 2009, the exports reached approximately 6 billion HK dollars (726 million U.S. dollars). Its top export markets were the U.S., the U.K., Macao, Italy and France.

The 36th Hong Kong Toys and Games Fair, Asia's largest toy show, opened on Monday featuring about 2,000 exhibitors from 38 countries and regions.

Source: Xinhua

 

[grey boy 2]

Chinese supertanker set for maiden voyage to Mid-East - People's Daily Online
Jan 12 2010

China's largest and the most advanced crude oil tanker, Xin Buyang, will embark on its maiden voyage from Guangzhou Zhongchuan Longxue Shipbuilding Base later this month en route to the Middle East, Guangzhou Daily reported.

The 308,000-ton super large tanker, which is independently designed and built by a Chinese company, is believed to have the world''s largest tonnage with a water displacement of 350,000 tons. The deck stretches 333 meters long.

Captain Feng Wanyuan told the newspaper that the pilotless tanker is equipped with an automatic navigation system that can spare crew members from the navigation bridge and sail on automatic pilot for 24 hours in the worst weather.

"Xin Buyang is by far the most advanced super-large oil tanker with a high level of automation and reliability in performance, featuring independent technology in design and construction," Feng said.

In response to the growing threat of Somali pirates attacking oil tankers, the tanker is equipped with high-pressure water cannons to fend off marauding attackers. Feng said the oil tanker will pass through the Gulf of Aden on its maiden voyage to the Middle East.

The tanker has installed an alarm system that will immediately send nautical information on the ships'' location to offshore operators within 35 seconds of an emergency.

"A crude oil carrier is the easiest target for a pirate attack because it travels at a relatively lower speed compared to other cargo ships," said Miss Zhu, director of the Shipping Division of China Shipping Group Company, which is in charge of the business operations of Xin Buyang.

"But that should not prevent us from developing our own large-scale oil tanker which is much more cost effective," Zhu added.

However, Zhou Hongchun, professor of social development at the Development Research Center of the State Council, told the Global Times that despite the increased number of Chinese made large-scale oil tankers, the imported crude oil shipping industry is still dominated by foreign tankers.

A 2005 statistic reveals that the nation's oil imports shipped by domestic oil tankers made up only 10 percent of the total, and 90 percent of oil imports were shipped by leasing foreign oil tankers.

"That situation has changed much over the years," said professor Zhou, indicating that the competitive edge of Chinese oil tankers still lacks behind.

Since 2003, China has become the world's second largest crude oil consumption country after the US. Imported crude oil amounted to 183 million tons last year.

 

[Communist]

China overtakes US as world's largest car market

 

[Communist]

China Building 50,000 New Skyscrapers By 2025

 

[grey boy 2]

China plans world's highest airport in Tibet - People's Daily Online 09:01, January 13, 2010

LHASA: China plans to break a new record and build the world's highest airport in Tibet at an elevation of 4,436 m, the regional civil aviation director announced.

Xu Bo, director of the Tibetan Branch of the China Civil Aviation Administration, said the airport, planned for the Nagqu prefecture, would be 102 meters higher than Bamda Airport in Tibet's Qamdo prefecture, which was built in 1994 and is currently the world's highest airport.

Xu Jian, director of the Nagqu Committee of Development and Reform, said the airport included in Tibet's development plan. The committee has yet to confirm a site for the airport.

"The construction is planned for 2011. It will take three years to build the airport, which is expected to cost 1.8 billion yuan ($263 million) and cover between 233 to 266 hectares," he said.

This airport, the sixth in Tibet, would be named Nagqu Dagring Airport after the area of its expected location.

"The civil aviation network in Tibet has taken shape. The objective for the next stage of development is to open direct air routes from Tibet to south Asian countries," he said.

Nagqu, about 300 km from Lhasa, capital of Tibet, is in the center of the Qinghai-Tibet Plateau. The prefecture has a population of about 400,000.

"With the airport, Nagqu, which is also on the Qinghai-Tibet railway line, is expected to become an economic hub in the plateau region," said Tan Yongshou, commissioner of Nagqu prefecture.

Source:Xinhua

 

[grey boy 2]

Mercedes-Benz's 2009 sales soar 77% in China - People's Daily Online Jan 12 2010

Mercedes-Benz marked 2009 as their "best year ever" in China with sales in the mainland soaring 77 percent to 68,500 vehicles, German-U.S. auto giant Daimler Chrysler said Tuesday.

The locally produced C-Class cars became the best-selling model, totalling 16,000 units in 2009, up 156.3 percent on 2008.

Sales of Mercedes-Benz passenger vehicles in China set a new monthly record of 9,350 units in December.

"China became the fourth-largest market for Mercedes-Benz in the world," said Klaus Maier, president of Mercedes-Benz China.

Despite the far-reaching international economic crisis, Mercedes-Benz sold nearly 15,000 S-Class cars in China last year, making the country the largest market for the luxury flagship model, while the sales of SUV series added up to 15,800 units, said the company.

The company also said 2009 was the best year for Mercedes-Benz since it came into the Chinese market more than 20 years ago.

German automaker Volkswagen AG said its 2009 sales in China rose 36.7 percent to 1.4 million vehicles.

Source: Xinhua

 

[AnGrz_Z_K_Jailer]

China puts brakes on growth

Global markets were rattled by China's surprise increase of banks' required reserves, but investors should be thankful that Beijing is not asleep at the wheel of a very fast-moving car.

Analysis by Simon Rabinovitch and Aileen Wang, in Beijing for Reuters
Published: 1:08PM GMT 13 Jan 2010

On the contrary, China is trying to prolong its cycle of strong growth and steer clear of a boom-bust scenario.

The 50-basis-point rise in the reserve requirement ratio (RRR) that was announced late on Tuesday is, first and foremost, a tool for the central bank to manage cash sloshing about the Chinese economy, locking up about 300 billion yuan (£27 billion) that banks would otherwise be able to lend.

But its greater significance is that it is China's most unambiguous tightening of monetary policy since the world's third-largest economy shot back towards double-digit growth from a near standstill in late 2008.

Hence the fears that Beijing is about to launch a cycle of aggressive tightening that will weigh on the Chinese economy and, by extension, the China-powered global recovery.

Further tightening steps - more bank reserve increases, higher interest rates and even allowing some appreciation of the yuan - are widely expected to come. Lost in the market panic, though, are two essential points.

First, Chinese monetary conditions remain quite loose and officials have repeatedly insisted that they are not about to choke off a recovery that they fret is still not on solid ground.

Second, by taking pre-emptive steps now to nip overheating, inflation and asset bubbles in the bud, Beijing is hoping to avoid draconian tightening down the road.

"We see this adjustment as a positive step given the rapidly increasing inflationary pressures in the economy," said Yu Song, an economist at Goldman Sachs in Hong Kong. "It highlights that the government is well aware of the inflationary pressures in the economy and is very flexible in changing its policy stance."

Although the reserve requirement increase caught global investors' attention, China had already made a series of smaller moves. The central bank also raised one-year bill yields on Tuesday and drained a record 200 billion yuan (£18 billion) via 28-day repurchase agreements.

Nevertheless, Beijing raised required reserves earlier than the market expected, setting off speculation about what pushed it to act so soon. Several factors probably worked together.

Chinese banks reportedly issued 600 billion yuan in new loans in the first week of the year, about double their monthly average in the last half of 2009. By freezing more of their deposits as required reserves, Beijing was making clear that it does not want a repeat of their unprecedented lending surge a year ago.

There is also reason to believe that inflows from abroad have been picking up, generating more liquidity above and beyond that from the banks' nearly 10 trillion yuan in lending last year.

"With exports recovering and RMB appreciation expectations rising, FX inflows will only get larger, requiring increased sterilisation efforts by the People's Bank of China," Wang Tao, China economist at UBS, said in a note. "In other words, the central bank has to keep running to stand still."

Inflation figures for December, likely to be published next week, may also contain a nasty surprise, which could have cemented China's will to act now.

Consumer prices rose 0.6 per cent in the year to November after spending much of 2009 in deflation. Analysts polled by Reuters forecast that the December reading jumped to 1.5 per cent.

"The increase in required reserves is mainly targeted at curbing inflation expectations," said Nie Wen, an economist at Fortune Trust in Shanghai. "I don't think the central bank will take aggressive tightening action until more figures in the coming months show steep inflation growth and a sustainable improvement in exports."

Expectations that more tightening steps will follow are, of course, predicated on the view that monetary conditions in China are still very loose.

The government is believed to be targetting about 7.5 trillion yuan in new lending this year. With as much as 1.5 trillion yuan of last year's loans still sitting unused in corporate bank accounts, credit in the economy should remain ample throughout this year.

It is also important not to overstate the power of reserve requirements. In China's last tightening cycle, from mid-2006 to mid-2008, the central bank raised the ratio 18 times. That did not stop the stock market from soaring until late 2007 and inflation from climbing to a decade-high in early 2008.

Source : China puts brakes on growth - Telegraph

 

[grey boy 2]

Construction of China's jumbo jet engine base starts - People's Daily Online 13:09, January 13, 2010

On the morning of January 12, the Aviation Industry Corporation of China's Commercial Aircraft Engine Company, the main participant and general manufacturer of China's jumbo jet engine project, held a ceremony to mark the beginning of its research and development base construction in Shanghai's Minhang District. Construction of the base which will integrate many functions such as research, development, airworthiness, customer service, and international communication indicates the important progress that China has made in developing jumbo jet engines.

Reporters learned that the total land area for the base will reach 450 mu with the floor area standing at 300,000 square meters. It is expected to be completed in 2013 at a cost of 3.23 billion yuan.

By People's Daily Online

 

[AnGrz_Z_K_Jailer]

Shanghai overtakes Tokyo as busiest Asia stock market


15 Jan 2010, 0307 hrs IST, Bloomberg

SINGAPORE: Shanghai overtook Tokyo as Asia’s biggest stock market by trading value last year, as an 80% jump in China’s benchmark index boosted
equities demand.

Shares worth $5.01 trillion changed hands on the Shanghai Stock Exchange in 2009, compared with $4.07 trillion on the Tokyo Stock Exchange, according to data compiled by Bloomberg. The Shanghai and Tokyo exchanges were ranked third and fourth globally, the Nikkei newspaper reported, citing the World Federation of Exchanges. Only the Nasdaq stock market and the New York Stock Exchange had higher trading volumes than Shanghai.

“As an emerging market, China has a very high ratio of stocks changing hands,” said Li Jun, a strategist at Central China Securities Holdings in Shanghai. “Increased new share sales are also one reason behind the high turnover. It’ll probably take one year or two for China to catch up with the world’s biggest.”

The Securities Regulatory Commission on January 8 approved short sales, stock index futures and margin trading. Morgan Stanley said the reforms may boost transaction volume by 50%, helping to usher China’s market into a “new era.”

The Shanghai Composite Index rebounded last year from a 65% loss in 2008 after the government introduced a 4 trillion-yuan ($585.9 billion) stimulus package, encouraged banks to advance record loans and subsidised individual purchases of cars and home appliances. Japan’s Nikkei 225 Stock Average rose 19%.

Shanghai has the world’s third largest stock market by market capitalization, briefly overtaking Tokyo in July 2009. New York is the biggest by market cap. Mainland companies raised 207.6 billion yuan from initial public offerings in 2009, double from the previous year, according to Bloomberg data.

Source : Shanghai overtakes Tokyo as busiest Asia stock market- Global Markets-Markets-The Economic Times

 

[Lankan Ranger]

China's foreign exchange reserves near $2.4 trillion

Jan. 15 (Xinhua) -- China's foreign exchange reserves almost hit 2.4 trillion U.S. dollars by the end of 2009, up 23.28 percent year on year, the People's Bank of China, the central bank, announced on Friday.

China's forex reserves near $2.4 trln_English_Xinhua