China Economy - News & Updates

[white_pawn]

China Railway bags 5 orders​

By Li Fei (China Daily)
Updated: 2009-06-05 10:28

China Railway Group has won five railway and light rail orders with a combined value of 10.1 billion yuan, bringing the total amount of contracts awarded to the State-owned rail builder to 200 billion yuan in the past few months.

Analysts said the contracts won so far represent only part of the railway building frenzy embodied in the country's 4-trillion-yuan economic stimulus package announced late last year after the outbreak of the global financial crisis.

The government hopes the package, including massive expenditure on railway construction, will boost domestic demand to help maintain credible economic growth in the face of shrinking exports.

The total value of the contracts accounted for about 4.31 percent of China Railway's revenues in 2008 according to Chinese accounting standards, China Railway said in a stock exchange filing.

One of its subsidiaries won a contract to build a passenger-only rail between Panjin and Yingkou in Liaoning province, valued at 4.44 billion yuan, the single largest order among the five projects it won, according to the company.

The country's largest railway and highway builder was also awarded a 3.44-billion-yuan order to build a passenger-only railway between Hefei and Bengbu within Anhui province.

It also won a 590-million-yuan contract to build a part of a subway line in Beijing and a 690-million-yuan light rail project in Chongqing.

"The new order intake is slightly better than our expectations and we envisage a 50 percent jump in mid-year earnings," securities house BOC International (China) Ltd said in a note.

China Railway, analysts say, will stand to gain the most in China's push to build more railroads in the coming years and the massive infrastructure boom expected as a result of the 4-trillion-yuan stimulus plan.

China is expected to spend 5 trillion yuan until 2020 to build 41,000 km of new railways and this year alone 600 billion yuan will be poured into railway and related construction projects.

"Infrastructure construction projects, especially in the railway sector, will only accelerate in the next two years," said Xu Yongchao, analyst, China Minzu Securities.

"The abundant orders the company has in hand now means it can guarantee robust revenue and profit growth in the coming years," Xu said.

China Railway shares edged up 1.64 percent to close at 6.19 yuan in Shanghai trading yesterday.

The company's revenue is expected to rise by nearly a quarter to 280 billion yuan this year from about 225 billion yuan in 2008, its President Li Changjin said in April.

The rail builder's net profit rose 76 percent to 1.2 billion yuan in the first quarter, while its revenue jumped 70 percent to 60.1 billion yuan.

The construction giant, however, posted a steep drop in 2008 earnings, dragged down by a 4.1 billion yuan foreign-exchange loss.

The builder is planning to issue bonds to raise 12 billion yuan to fund operations and repay loans.

China Railway bags 5 orders

 

[aimarraul]

Rio deal off; Chinalco seeks other acquisitions
By Jiang Wei (China Daily)
Updated: 2009-06-06 08:18

"Sorry," Rio Tinto told its would-be Chinese investor on Friday. "No deal now."

The Aluminum Corp of China (Chinalco) confirmed the collapse of a deal to invest $19.5 billion in the Anglo-Australian mining company, with general manager Xiong Weiping saying he was "very disappointed".

The world's third largest mining company will now pay Chinalco $195 million as compensation for termination of the deal.

But despite the discouraging outcome, Chinalco will continue to look for investment opportunities outside the Chinese mainland, Xiong said. "Although the Rio Tinto deal has fallen through, Chinalco's strategic aim of building an international multi-metal mining company will not change."

Rio Tinto now seeks to raise $21 billion from a share sale and an iron ore joint venture with BHP Billiton, its rival Australian company, to solve its financing problems. The company said on Friday that it would raise $15.2 billion in a share sale in a 50-50 joint venture with BHP Billiton, and get $5.8 billion from its rival to equalize their contributions.

Chinalco would have invested $12.3 billion in joint investments in aluminum, copper and ore mining with Rio Tinto, and spent $7.2 billion on convertible bonds in the company. If redeemed for shares, the bonds would have almost doubled Chinalco's existing 9.3 percent stake in the Rio Tinto Group to 18 percent.

Geng Nuo, analyst with Shenzhen-based brokerage firm Great Wall Securities, said the deal's failure "is a setback for Chinalco's expansion strategy, but it is not expected to hurt its overseas investment strategy in the long run".

Chinalco's loss, however, has not come as a major surprise to Peng Bo, analyst with another Shenzhen-based brokerage Guosen Securities, because the international non-ferrous metal market has been showing signs of recovery.

"The Chinalco offer came in February when prices of most non-ferrous metals had hit the bottom," Peng said. "Rio Tinto can afford to go back on its words now that the market has turned around."

Though Treasurer of Australia Wayne Swan said the aborted deal was a commercial matter for the private sector and did not concern the government, some observers argued Rio Tinto might have been under political pressure not to tie up with Chinalco.

Wang Zhile, a specialist in foreign investment, said the pressure in Australia was quite remarkable. Opponents ran commercials on TV asking the Australian government to block the deal. Some Rio Tinto shareholders even alleged that the deal favored the State-owned Chinese company.

"Some may argue that blocking the deal was good for a country's economic security but in this era of globalization investing in each other's companies would give countries a much greater sense of security," Wang said.

 

[Joshi]

Chinese passing off fake drugs as 'Made in India'
Chinese passing off fake drugs as 'Made in India'- Pharmaceuticals-Healthcare / Biotech-News By Industry-News-The Economic Times

NEW DELHI: Are fake drugs manufactured in China being pushed into various African countries with the `Made in India' tag? The Indian government

has long suspected this to be the case, but it now has definite evidence for the first time.

Last week, the National Agency for Food and Drug Administration and Control (NAFDAC) of Nigeria issued a press release stating that a large consignment of fake anti-malarial generic pharmaceuticals labelled `Made in India' were, in fact, found to have been produced in China.

New Delhi has registered ``strong protest'' with the Chinese mission and China's foreign trade ministry, according to sources in the commerce ministry.

India's High Commissioner in the Nigerian capital of Abuja, Mahesh Sachdev, had earlier written to then commerce secretary GSK Pillai, alerting him to the large seizure: ``While this is a case of a Chinese company exporting fake `Made in India' labelled medicines which has been accidentally exposed, it is unlikely to be an isolated incident. Indeed there is no reason for Nigeria to be the only country to be receiving such consignments.''

His letter went on to say: ``Fake foreign-made generics carrying `Made in India' label can do tremendous harm to our interests. It not only dents our image and takes our legitimate market share, it also erodes the distinction between generic and fake medicines that we have been campaigning for at WHO and WTO''.

Commerce ministry sources said: ``We have had many complaints about such fake drugs from China being offloaded as Indian drugs in countries like Ghana, South Africa, Ivory Coast and West Africa, in general, where India has a substantial market share. But so far there has been no formal complaint. This is the first time that such a large international consignment has been seized and this will be taken up strongly with the Chinese side.''

Sachdev in his letter said that he had spoken to the director-general of NAFDAC Dr Paul Orhii who said that the Nigerian preference for generics made such cases of fake drugs more common. He expressed NAFDAC's determination to curb circulation of substandard fake medicines.

India and China have been held primarily responsible for fake drugs in the Nigerian market in particular and Africa in general. About 60% of drugs in Nigeria are imported. Between 2001 and 2007, more than 30 Indian and Chinese companies were banned in Nigeria for exporting fake drugs to the country.

However, Dr Mira Shiva of the Initiative for Health Equity and Society (IHES) told TOI that both India and China being large manufacturers of generics, multinational firms would look to discredit the two countries and label their drugs as substandard, so that they would have greater access to the African markets. She warned against the two countries trying to run each other down before ascertaining the full facts in the case to rule out any orchestration, but added that India ought to be more careful to ensure the quality of the drugs exported as well as sold domestically.

______________________________________________

All out in their true colours.....

 

[Choppers]

Well we all know tht Chinese are Pirates No.1.

Last time i heard they were manufacturing Bajaj Pulsar disguised as "Gulsar" and exporting them to African Nations.So nothing new.

 

[Joshi]

Well we all know tht Chinese are Pirates No.1.

Last time i heard they were manufacturing Bajaj Pulsar disguised as "Gulsar" and exporting them to African Nations.So nothing new.

I think you didnt get it. They are selling it with 'Made in India' tag. This is new. They can ell whatever fakes they want to sell. But dont put India's name. I tell you why. No one buy their drugs now, so they are upto ruining others' brands now.

 

[mDumb]

I think you didnt get it.They are selling it with 'Made in India' tag.

C'mon dude, don't be so gullible. Yeah, our drugs are bad let's blame it on the Chinese.

 

[Gabbar]

There is a already another thread about this!!! Mods please combine them.

http://www.defence.pk/forums/curren...hinese-passing-off-fake-drugs-made-india.html

 

[M.AKRAM NIAZI]

Analysis of Countries from Where Drugs are mainly imported:
Finished drugs are mainly imported from neighboring countries China, India and in some extent from Bangladesh. Therefore it is necessary to analyze their own import policies to know that how they are protecting their local Industry and status of compliance of their Industries to GMP and regulatory requirements

________________________________________________________________________
India

For Protection of Local Manufacturer following measures
Were taken By Indian Government.
Industrial licensing for the manufacture of all drugs and pharmaceuticals has been abolished except for bulk drugs produced by the use of recombinant DNA technology, bulk drugs requiring in-vivo use of nucleic acids, and specific cell/tissue targeted formulations.
For Restricting Imports following measures
Were taken By Indian Government.
• Ministry of Health and Family Welfare will enforce strict regulatory processes for import of bulk drugs and formulations.
• For imported formulations, the margin to cover selling and distribution expenses including interest and importer’s profit shall not exceed fifty percent of the landed cost.
• Due to Government policies and low cost of domestically produced drugs and the absence of patent rights regulations has made the Indian Market less attractive for foreign companies.
Quality of Indian Medicines.
“Counterfeit drugs could be the single biggest problem in India in the next ten years due to the growth of garage-based drug manufacturing outfits, rampant corruption, and weak drug control,” A 2003 Scrip report estimated that 15 to 20% of the medicines sold in the country are counterfeits. A case study reported in a 2001 conference showed the following percentage (out of 125 tracer medicines) that failed quality testing: 6% from the public sector, 12.7% from the private sector; and 0% from NGOs.
In 2001, Lancet reported that, according to WHO statistics, India produces as much as 35% of the fake and substandard drugs in the world. A powerful group of manufacturers have taken over much of the production during the past three years. It is reported that these Counterfeit drugs are manufactured mostly in the northern states; but these fake drugs are widely available throughout the country. They are available as well in Myanmar (Burma) and Cambodia, and their distribution may even extend as far as the former Soviet states, as evidenced by the arrest of four Uzbek women caught trying to smuggle them to be sold in their country. (Ref: 2004 The United States Pharmacopeial Convention, Inc. A Review of Drug Quality in Asia with Focus on Anti-Infective).
India was among the six countries that participated in a drug quality study which collected a total of 71 samples of the antituberculosis drugs isoniazid (INH) and rifampicin (RMP) as a single entity or a fixed-dose combination (FDC) (see Multi-country studies). Overall, 10% (4/40) of all samples obtained from all six countries, including 13% (4/30) RMP were substandard, containing < 85% of stated content. More FDCs, 21% (5/24), than single drug samples, 13% (2/16), were deemed substandard.
_____________________________________________________________________
China.
Quality of Chinese Medicines:
According to the SDA, a nation-wide survey on the quality of medicines carried out in 1998 found that 13.1% of the 20,000 batches tested were either counterfeit or fell below minimal pharmaceutical standards.
In 1997, China News Digest reported that the Health Ministry of China inspected 1100 medicines and found 138 products that failed to meet national standards. Of these, 48 were fake medicines with pirated registration numbers.
At the 2002 Global Forum on Pharmaceutical Anti counterfeiting held in Geneva, Switzerland, a representative from the Glaxo SmithKline (GSK) pharmaceutical company reported on the counterfeiting of two of their products in China. The first was Imuran tablets. The counterfeit Imuran was found to contain the correct amount of azathioprine, the active ingredient; however, the tablets were labeled incorrectly as “azathiopring.” Upon testing, the tablets failed the quality specification for disintegration time. The tablets were still intact after four hours in water at 37 °C, while genuine tablets dissolve in 45 minutes. The other drug was Zinacef tablets. The genuine oral dosage form contains cefuroxime axetil; the counterfeit Zinacef tablets revealed the presence of cefuroxime sodium, the injectable dose form. When taken orally, cefuroxime sodium is absorbed minimally by the digestive system resulting in no therapeutic benefit.
_______________________________________________________________________
Bangladesh.
For Protection of Local Manufacturer following measures
were taken By Government.
1. The importing of a drug which is the same or one produced in the country, or a close substitute for it, may not be imported, as a measure of protection for the local industry. However, if local production is far short of need, this condition may be relaxed in some cases.
2. A basic pharmaceutical raw material, which is locally manufactured, will be given protection by disallowing it or its substitute to be imported if sufficient quantity is available in the country.
3. No foreign brands may be manufactured under license in any factory in Bangladesh if the same or similar products are available/manufactured in Bangladesh.
4. No multinational company without their own factory in Bangladesh will be allowed to market their products after manufacturing them in another factory in Bangladesh on a toll basis.
Restrictions on patent rights discourage foreign investors to come up actively in the pharmaceutical market in Bangladesh. Moreover introduction of new molecules is difficult due to slow registration process and restrictions.
Quality of Medicines from Bangladesh:
Among the total 245 pharmaceutical manufacturers only top 20 leading manufacturers are producing good quality medicines in the country and most others are engaged in the production of substandard or fake drugs. Substandard or fake versions of life-saving drugs are alarmingly prevalent in Bangladesh markets. In some cases, it is around 70% to 80%.
One media report showed that among all the pharmaceutical manufacturers only 20 to 25 companies are producing quality medicines in the country. The situation clearly raises a question about the role of the remainder manufacturers.
They are mainly involved in the production of fake/substandard or imitating renowned brands of various drugs. At present, spurious drugs have been flooded all over Bangladesh. Another testing conducted by the drug regulating body found 69% paracetamol tablets and 80% ampicillin capsules as substandard from some small manufacturers.
A recent assay involving 15 brands of ciprofloxacin showed that 47% of the collected samples containing active ingredient less than the required specification.
In a survey conducted during 1988-91, it was found that 66 of the 198 licensed manufacturers were each producing between 1 and 16 substandard drugs (49% OTC drugs and 6.3% injectables, the remainder being non-injectable prescription drugs). Of the OTC products, about 36% was paracetamol and 41% consisted of antacids. The content of the active ingredients was found to be insufficient.
In 1992, quality studies were conducted on paracetamol tablets, ampicillin capsules, cotrimoxazole tablets/suspensions, vitamin B-complex tablets/capsules/injectables, and vitamin B-2 tablets. A total of 137 brand samples of these drugs were obtained from retail shops in various parts of the country and analyzed for level of content of the active ingredients as well as the disintegration of tablets. Results showed 37 samples were substandard, all manufactured by small companies. Of the 16 brands of paracetamol tablets and 10 brands of ampicillin capsules that were substandard, 11 and 8 respectively, had previously been considered substandard in an assessment conducted by the regulatory authority. This holds true also for the two brands of cotrimoxazole suspension found to be substandard. All analyzed products for 13 of the top 15 companies in Bangladesh met the required standards.
A recent case study involving a sample of 15 brands of ciprofloxacin collected for chemical assay by HPLC and bioassay revealed seven brands containing active ingredient less than the USP specification.
(Ref: 2004 the United States Pharmacopeial Convention, Inc. A Review of Drug Quality in Asia with Focus on Anti-Infectives )

Conclusion:
From all above analysis it is clear that importing Drugs from these countries will be not only harmful for the economy but also dangerous for the health and safety of the nation.

Therefore, it is needed to restrict import of Low Quality Finished products specially from India and China or any other country by levying Protection duties on products which are produced locally and measures should be taken to improve growth of Local Pharmaceuticals as well as to promote exports of Pharmaceuticals.

M.AKRAM KHAN NIAZI.
Email:akrumniazi@hotmail.com
Karachi,Pakistan.

 

[aimarraul]

2.7 million units of "home appliances going to the countryside" sold in the first quarter

According to China's Ministry of Commerce, a total of 2.7 million units of "home appliances going to the countryside" have been sold in the first quarter of 2009 for 4 billion yuan. Of these 2.7 million units, 1.485 million units were sold in March for 2.24 billion yuan, representing an increase of 70 percent and 72 percent year-on-year, respectively.

The "home appliances going to the countryside" program has stimulated the development of the electronic manufacturing and home appliance industries. It has also boosted the development of various industries, including chemical engineering and mechanical manufacturing of steel, such as sheet steel.

Li Yizhong, Minister of Industry and Information Technology of China, said that, "Facts prove that if the "home appliances going to the countryside" program continues to last for one year, two years or three years, it is likely to produce very noticeable effects in improving the development of the electronics industry and electronic manufacturing industry."

The "home appliances going to the countryside" program started back in December 2007. Under the program, farmers who purchased home appliances which were included on the subsidy list received partial financial subsidies. At first, the program was given a trial run in Shandong, Henan and Sichuan provinces as well as in Qingdao. Its scope was then expanded to 14 provinces in 2008.

This year, all provinces, autonomous regions and municipalities directly under the central government are planned to be included in the program. After farmers buy the products within the scope of the program, they can apply to the town and township financial sectors of their registered residence within a specified time for subsidies after showing relevant documents. And finally, the county (and county city) financial departments, after examination and review, will transfer the subsidy funds to the farmers' saving accounts.

 

[Joshi]

C'mon dude, don't be so gullible. Yeah, our drugs are bad let's blame it on the Chinese.

Read the report before speaking anything on the comments. Read this now...

Last week, the National Agency for Food and Drug Administration and Control (NAFDAC) of Nigeria issued a press release stating that a large consignment of fake anti-malarial generic pharmaceuticals labelled `Made in India' were, in fact, found to have been produced in China.

It's the Nigerians who found out. OK?

 

[Peace_maker]

http://www.chinamotorcycleparts.com/motor/image/GULSAR180.jpg

 

[mDumb]

Read the report before speaking anything on the comments. Read this now..

Any bozo can read but can you think? That was my point!!!!

It's the Nigerians who found out. OK?

And you ******* believe the Nigerians? ****, they have been known to steal money from the US citizens. Hey dude, I just got inheritance money ($5million), if you deposit $50K into a designated account you can have the $5million.

 

[Communist]

The opening sentence says it all about the real victim.

ARE YOU AN international pharmaceutical company, finding a place for your banned drugs to recover from your losses? Don&#8217;t worry, we have got the solution &#8212; come to India!

Well it does not need a Ripley&#8217;s Believe it or Not show to make people aware that India has become a hub of banned drugs. You will be shocked to find the list of drugs, which we consume and are actually banned in other countries. These drugs are selling as hot cakes in India. It is ghastly, but true.

India has become a dumping ground for banned drugs. The business for production of banned drugs is blooming and because there are more consumers here and all illegalities are duly obeyed. The irony is that very few people know about the banned drugs and consume them unaware, causing a lot of damage to these people. The issue is severe and we must not delay in spreading the warning message to the offenders and innocent people.

As big time business enterprises and small time defaulters, pharmaceuticals have been growing in every direction. There are few provisions for a proper check and control of spurious drugs in Indian markets. Worst than that is the little knowledge and slapdash attitude of the buyers. Even at this time, a large population takes medicine and drugs without prescribing a doctor, which in fact is a very wrong decision and can be dangerous.

Drugs that have been globally discarded but are available in Indian markets include:

Analgin
It is a painkiller
Reason for ban: Bone marrow depression.
Brand name: Novalgin

Cisapride
For acidity, constipation
Reason for ban: Irregular heartbeat
Brand name: Ciza, Syspride

Droperidol
Anti-depressant. Reason for ban : Irregular heartbeat.
Brand name: Droperol

Furazolidone
Anti-diarrhoeal
Reason for ban: Cancer
Brand name: Furoxone, Lomofen

Nimesulide
Painkiller, fever
Reason for ban: Liver failure
Brand name: Nise, Nimulid

Nitrofurazone
Anti-bacterial cream
Reason for ban: Cancer
Brand name: Furacin

Phenolphthalein
Laxative
Reason for ban: Cancer
Brand name: Agarol

Pheylpropanolamine
Cold and cough
Reason for ban: stroke
Brand name: D&#8217;cold, Vicks Action - 500

Oxyphenbutazone
Non-steroidal anti-inflammatory drug
Reason for ban: Bone marrow depression
Brand name : Sioril

Piperazine
Anti-worms
Reason for ban: Nerve damage
Brand name: Piperazine

Quiniodochlor
Anti-diarrhoeal
Reason for ban: Damage to sight
Brand name: Enteroquinol

To ensure maximum safety and security, it is advisable to get only drugs prescribed by a medical practioner. Also, ask for the details like the name of the company that manufactures it. Always buy medicines from a recognized drug store.

Killer pills: Banned but available

 

[Communist]

Dealing with fake drugs

R. RAMACHANDRAN

The Mashelkar Committee, which studied the various aspects of the growing threat from spurious drugs, submits an interim report recommending stringent punishment for offenders.

THE Indian pharmaceutical industry has a domestic turnover of more than Rs.20,000 crores and exports over Rs.10,000 crores. It is also growing at the rate of over 10 per cent for the last decade and is said to be the fourth in the world in terms of volume. But a consumer has good reasons to be concerned about the lack of availability of safe and genuine medicines. For, the problem of spurious and substandard drugs in the country is quite rampant, as is evident from periodic reports in the media on seizures and confiscation of fake drugs from large consignments or godowns. These, however, would constitute only a small fraction of the real extent of the illegal activity, which perhaps is no different from the extent of counterfeit trade in other commercial products...

Problem areas

A list of possible factors contributing to proliferation of spurious drugs, according to the Mashelkar Committee Report

1. Lack of enforcement of existing laws;

2. Weak penal action;

3. Very remunerative trade;

4. Large-scale sickness in small scale pharmaceutical industry*;

5. Availability of improved printing technology that helps counterfeiting;

6. Lack of coordination between various agencies;

7. Too many retail and wholesale outlets**;

8. Inadequate cooperation between stakeholders;

9. Lack of control by importing/ exporting countries***;

10. Widespread corruption and conflict of interests.

* The report does not provide any data on the extent of this problem and reasons thereof.

** According to the Health Ministry, there are over 0.35 million sales outlets in the country (November 2002 data).

*** This appears as a casual statement in the report with no evidence of any effort at obtaining data from importing countries on rejected consignments, their sources, and so on. Even accepting the absence of controls - highly unlikely, given the nature of countries that are likely to export to India - in the exporting countries, this also points to the absence of testing mechanisms at the Indian ports.

I think Indians first try to deal with their homeland fake drug problems instead of constantly reciting the same lyrics.

 

[Communist]

Drugs Banned worldwide still available in India ( A drug banned in most parts of the worl...)

A drug banned in most parts of the world due to its side effects is still available in India,// despite reports of serious adverse events observed among several children who had been taking it in the Sub-continent.

The drug Nimesulide, a non-steroidal anti-inflammatory drug, which has been reported as causing liver toxicity is still widely used in India commonly for pain relief and fever although it was approved for use in India in 1994 for painful inflammatory musculoskeletal disorders. Besides being available as a single ingredient, nimesulide is also available in more than 30 other drugs and as drops for children aged under1 year. All are unapproved by the drugs controller and therefore illegal.

The drugs controller general of India, Ashwini Kumar, has said that the government was appointing a committee to look into the issue of adverse reactions to the drug. However in a statement made by the deputy drugs controller, Ram Teke, has been cited as saying that there was no move to reconsider its use or approval.

At present there is no system of monitoring adverse drug reactions in India hence drugs that are banned globally or whose use is severely restricted or not approved owing to serious side effects are freely available in India. Some of the names of the drugs banned in other parts of the world but available in India include anagen, cerivastatin, droperidol, furazolidone, lynestrenol, nitrofurazone, phenformin, phenolphthalein, phenylbutazone, piperazine, quiniodochlor.

Leading doctors in India say that if a particular drug is bad and harms people’s health, it has to be banned immediately and they also stress on the fact that at present such decisions are taken only to help manufacturers and to suit the commercial interests of the pharmaceutical companies thereby affecting the drug regulatory mechanism in India and until such issues are not sorted out the existing situation would prevail.