Chinese Economic News & Discussions

[Brotherhood]

Discoveries fuel China's resource security - People's Daily Online January 17, 2011

Chinese geologists have detected "super-thick" oil and gas-bearing stratums in the northern part of the South China Sea and identified 38 offshore oil and gas-bearing basins, a senior official said on Saturday.

The outskirts of Songliao Basin in Northeast China, Yin'e Basin in North China and Qiangtang Basin on the Qinghai-Tibet Plateau have also been found to have rich oil and gas resources, Wang Min, vice-minister of land and resources, said at a national conference in Beijing.

In addition, 192.7 billion tons of coal resources have been found in Northwest China's Xinjiang Uygur autonomous region, and four 10,000-ton sandstone-type uranium mines have been located in Xinjiang and Inner Mongolia, he said.

Wang said these latest discoveries, particularly those at sea, have given direction for China's future resource exploration.

Conducting more geological inspections at the above regions has been set as one of the ministry's major working tasks this year.

Comprehensive geological and environmental inspections will be conducted at key offshore areas such as the southern region of Yellow Sea, the northern part of the South China Sea, East China's Liaodong Bay and regions near South China's Hainan Island, according to the ministry.

Wang said the country has also made a breakthrough in locating new energy resources. Natural gas hydrate has been found for the first time in the northern region of the South China Sea and frozen-soil areas at Qilian Mountain.

And a 2.46-million-ton lithium carbonate mine has been located in Southwest China's Tibet autonomous region, which will reduce the cost of lithium production and help with the country's new energy industry.

Due to China's rapid economic growth in the past 10 years, the country's energy consumption has been growing rapidly and become more dependent on imports.

Right now, China has become the biggest consumer of coal, steel, alumina, copper and cement.

More than half of the country's petroleum and iron consumption, about 70 percent of its copper consumption and 64 percent of sylvite consumption now rely on imports, according to figures released by the Ministry of Land and Recourses on Saturday.

Wang said thanks to the efforts of the geologists, new resources detected in the past 10 years accounted for about half of all resources found in the past half century, and the amount of new resources found each year has surpassed their annual consumption.

For instance, by the end of last year, the available reserves of iron and aluminum increased by 41 percent and 39 percent compared with the levels in 1999.

However, China will still experience resource bottlenecks in the future, Wang said.

"As a big developing country, we must make more efforts in exploring domestic supplies to ensure our energy security," Wang said.

China in the next five years will also have closer international cooperation on geological work and set up a global mining resource information database to help Chinese enterprises better survey and explore overseas resources, the ministry said, without giving more details.

Source:China Daily

 

[Martian2]

If we use the current exchange rate, China's 2010 GDP hit U.S. $6 trillion (e.g. 39.5 trillion Yuans / 6.5997 Yuan per dollar = U.S. $5.99 trillion).

However, the accepted method of calculating GDP is to use the 12-month average of the currency exchange rate. For 2010, the average exchange rate was 6.7692 Yuan per U.S. dollar (see Monthly Exchange Rate Average (Chinese Yuan, American Dollar) 2010 - x-rates). The official GDP for China in 2010 will be U.S. $5.84 trillion.

China's National Bureau of Statistics has shown a historical pattern of revising China's GDP upwards later in the year. For all intents and purposes, China's 2010 GDP is within a hair's breadth of U.S. $6 trillion.

UPDATE 1-China's economy grew 10.1 pct in 2010 -official | Reuters

"UPDATE 1-China's economy grew 10.1 pct in 2010 -official
Sat Jan 15, 2011 4:22am EST

* China 2010 GDP rises 10.1 pct to 39.5 trln yuan-official

* Says China faces pressure to meet 4 percent CPI target this year

BEIJING, Jan 15 (Reuters) - The Chinese economy grew around 10.1 percent last year, the deputy head of China's top economic planning agency told Reuters on Saturday, which amounts to the fastest pace of annual growth in three years.

Zhang Xiaoqiang, vice chairman of the National Development and Reform Commission, said the country's gross domestic product totalled about 39.5 trillion yuan ($6 trillion) in 2010.

The 2010 growth rate accelerated from a revised 9.2 percent expansion seen in 2009.

But Zhang noted that China may struggle to meet its 2011 inflation target of 4 percent as domestic labour costs climb and global commodity prices soar.

"There are many factors that are putting upward pressure on domestic prices, and we must note that imported inflation is intensifying this year," he said at a trade forum.

Zhang reiterated the government aims for growth this year of 8 percent in China's economy, the world's biggest, but stressed that the task of keeping prices stable will top Beijing's agenda.

He said uncertainties around the pace of recovery in the world economy could weigh on China's key export sector in 2011.

"We may face big difficulties in growing our exports in the future," he said.

To get around that, Zhang said, Chinese exporters should endeavour to move up the manufacturing value chain and place less emphasis on volume and more on quality.

His assessment of China's outlook is less upbeat than that of China's Commerce Minister Chen Deming.

Chen said on Friday China's exports and imports will grow at a faster pace this year than in 2010.

Chinese exports jumped around 31 percent in 2010 from a year ago, while imports leapt nearly 39 percent. (Reporting by Aileen Wang and Koh Gui Qing, editing by Jane Baird)"

China's yuan hits new record high at 6.5997 per USD

"China's yuan hits new record high at 6.5997 per USD
English.news.cn 2011-01-13 10:52:04

BEIJING, Jan. 13 (Xinhua) -- The Chinese yuan strengthened to a record high against the U.S. dollar on Thursday to reach 6.5997 per dollar.

The central parity rate of the Chinese currency, also known as the renminbi (RMB), was set 131 basis points lower than Wednesday's 6.6128, according to the China Foreign Exchange Trading System. (story continues)"

 

[Martian2]

In 2010, China became the first country in the world to smash through the 4,000 terawatt-hours threshold. China consumed 4,190 terawatt-hours of electricity. The United States fell into second place by consuming only 3,876 terawatt-hours of electricity. All hail the new king!

China's power consumption up 14.56 pct in 2010 -Xinhua | Energy & Oil | Reuters

"China's power consumption up 14.56 pct in 2010 -Xinhua
Mon Jan 17, 2011 2:18am GMT

BEIJING Jan 17 (Reuters) - China's total power consumption in 2010 rose 14.56 percent year on year to more than 4.19 trillion kilowatt-hours, official news agency Xinhua said, citing data from the China Electricity Council."

2011 Electricity Demand To Fall Slightly On More Normal Temps - EIA - WSJ.com

"2011 Electricity Demand To Fall Slightly On More Normal Temps - EIA
* JANUARY 11, 2011, 2:16 P.M. ET

NEW YORK (Dow Jones)--Electricity demand consumed across the U.S. is expected to fall in 2011 after surging higher last year on extreme hot and cold temperatures, according to the Department of Energy's short-term energy outlook released Tuesday.

Electricity consumption closely tracks growth in economic activity. But last year unusually hot and cold weather caused demand to rebound sharply as households cranked up their air conditioners and heaters, depending on the season. This activity snapped a rare two-year decline in power demand, caused by the housing crisis that deepened into the worst economic downturn seen in the U.S. in decades.

Total U.S. energy consumption, which rose 4 percent last year to 10.62 billion kilowatt hours a day, is now expected to significantly lag economic activity amid the return to "more normal temperatures," according to the Energy Information Administration's monthly short-term energy outlook."

[Calculation: 10.62 terawatt-hours a day * 365 days per year = 3,876 terawatt-hours of electricity consumed by U.S. in 2010]

----------

Electricity - consumption(kWh) 2010 country ranks, By Rank

Rank.....Country.............Value (kW-hours)............Date of Info
1..........United States....3,741,485,000,000.......2009 (actual, see below)
2..........China................3,643,000,000,000.......2009 (actual, see below)
3..........European Union....2,884,000,000,000..........2007 est.
4..........Russia................1,023,000,000,000..........2007 est.
5..........Japan.................1,007,000,000,000..........2007 est.
6..........India.....................568,000,000,000...........2007 est.
7..........Germany................547,300,000,000...........2007 est.
8..........Canada..................536,100,000,000...........2007 est.
9..........France...................447,200,000,000...........2007 est.
10........Brazil.....................404,300,000,000...........2007 est.

References:

United States: International Energy Statistics

China: China's power consumption grows 6 percent in 2009_English_Xinhua

 

[Brotherhood]

China's C919 jumbo jet will make first flight in 3 years - People's Daily Online January 17, 2011

China's domestically-developed C919 jumbo jet will fly for the first time in 2014 and will go on the market in 2016. The Chinese regional jet ARJ-21, which has already completed a successful test flight, will be put on market in 2011, according to the Commercial Aircraft Corporation of China, Ltd. (COMAC).

240 orders so far for regional jet ARJ-21

Since 2009, when the China-made regional jet ARJ-21 made a successful maiden flight, the China-made jumbo jet project has been the subject of growing public concern. Jin Zhuanglong, the general director of COMAC, said in an academic forum at Fudan University that, after two years of testing adjustment, the first ARJ-21 jet will be put on the market this year, and it has been received a total of 240 orders, including U.S. and European customers.

Jin said development of the ARJ-21 required eight years and attracted worldwide attention. Many well-known aircraft supporting suppliers, such as General Electric and Honeywell, have all called for cooperation.

"During the development process of the China-made regional jet ARJ-21 project, we always adhered to a premise, which is that all overseas suppliers must transfer technology to us," Jin said.

China-made jumbo jet equivalent to Boeing 737

The vast amount of technology displayed during the first test flight of the C919 jumbo jet after three years will fill China's gaps in the field. "During the research and development process of the C919 jumbo jet, we are more inclined to nurture domestic suppliers. The goal is to strengthen our own large aircraft production platform," said Jin Zhuanglong.

He said the overall level of the C919 jumbo jet will be equivalent to the Boeing 737.

By People's Daily Online

 

[pulsar220]

Chinese companies making mark in Indian markets

BEIJING: With China's export markets shrinking in US and EU , its businessmen are increasingly turning to India, making a mark on the fast-evolving Indian markets, a report in the Chinese official media here said.

While the market share for Chinese acquired Lenovo computers, has gained nine per cent share in the Indian market against stiff competition from HP, Dell and Acer, Chinese telecom equipment maker Huawei and ZTE made big inroad into Indian market, it said.
Lenovo, the Chinese company, which took over IBM's personal computer (PC) arm in 2005, now has a bold plan to surpass all its competitors to become the largest player in India by 2014.

"If we can be a strong No 1 in China and, giving the similarity between the two countries (China and India), why can't we be the No 1 in India?," the Managing Director of Lenovo India R K Amar Babu told China Daily in Bangalore.

He said because India is "a little behind China" in terms of economic development, market penetration and maturity, many of Lenovo's successful experiences can be applied to India.

As part of its global strategy to steer away from relying on advanced markets such as the US to fuel overseas growth, Lenovo started focusing its expansion on emerging markets.

It started investing in India and Russia after its business in the mature markets was hit hard by the global financial crisis in 2008.

Although India is the world's ninth biggest PC market, Babu said the country has a huge potential for growth due to its vast population, growing numbers of young people and relatively low PC penetration.

"By being manufactured in China, our product can be 25 per cent cheaper than our rivals. We expected our business to grow at the rate of 30 per cent annually and become one of the top two players in India in the next three years," D K Ghosh, chairman of ZTE Telecom India said.

According to research firm Analysys Mason, ZTE is the fourth biggest player in the India telecom equipment market, following Ericsson, Huawei and Nokia Siemens Networks.

Last month, the Chinese government approved ZTE's plan to increase investment in India.

Chinese companies making mark in Indian markets - The Economic Times

 

[kewell333]

BEIJING, Jan. 20 (Xinhua) -- China's economy resumed annual double-digit growth by expanding 10.3 percent last year, the National Bureau of Statistics (NBS) announced Thursday.

Gross domestic product (GDP) hit 39.8 trillion yuan (6.05 trillion U.S. dollars) last year, Ma Jiantang, director of the NBS, told a press conference Thursday.

In the fourth quarter, GDP growth picked up to 9.8 percent year on year from 9.6 percent in the third quarter, after slowing from 11.9 percent in the first quarter and 10.3 percent in the second.

"In the past year, China has consolidated and boosted its recovery from the global financial crisis, and the national economy is generally operating well," Ma said.

"The country is at a key stage of turning recovery into stable growth," he said.

The government set the full-year growth target at 8 percent in early 2010, after the economy recovered from the global economic downturn and expanded 9.2 percent in 2009 year on year.

 

[Brotherhood]

Economy grows 10.3% to hit $6.1 trillion in 2010 - People's Daily Online January 20, 2011

http://www.tradingeconomics.com/Economics/GDP-Growth.aspx?Symbol=CNY

China maintains a rapid and healthy economic growth, as its 2010 gross domestic product grew 10.3 percent, although Beijing is facing a mounting challenge to rein in inflation this year.

The National Bureau of Statistics said on Thursday in Beijing that GDP rose to 39.7983 trillion yuan (about US$6.1 trillion), rising 10.3 percent over 2009. The figure puts China's scale of economy bigger than Japan's last year.

The double-digit economic growth last year marks the fastest annual expansion since the onset of the global financial crisis in 2008.

Major propellers behind the rapid growth are a proactive fiscal policy and bank loans that inspire a boom in infrastructure construction all through the country, rising domestic consumption by a middle class with more incomes, and a strong demand for Chinese exports abroad.

China's consumer price index, a key measure of inflation, rose 3.3 percent from a year earlier over the 12 months, exceeding Beijing's full-year target of three percent as food and commodity costs soared across the board. But, December inflation slowed to 4.6 percent year-on-year compared with 5.1 percent in November, which was the fastest pace in 28 months.

Beijing has been trying to slow the economy and bring inflation under control amid fears that soaring food and urban property costs are creating equity bubbles and elevating inflationary pressure.

The policy-makers aim to cut new bank lending for 2011 by 10 percent from last year, after new loans in 2010 hit 7.95 trillion yuan, exceeding the 7.5 trillion-yuan official target.

People's Daily Online

 

[AUz]

Woohooo....Chinese are on roll

Keep up the good work and may we Pakistanis can learn something from our best friends too.

 

[ChineseTiger1986]

According to the average RMB/US currency of 2010, it should be 5.9 trillion USD. However, in January 2012 there will likely have a re-evaluation of 2010 which will push it right at 6 trillion.

 

[Pakchina]

This means that China's economy is three times larger than India.

 

[Dharmocol]

^^India's GDP is near $ 1.5 trillon.

So thats mean they r actually 4 times bigger,but why did u raised that question.

 

[AUz]

This means that China's economy is three times larger than India.

And how many times Indian economy is bigger than Pakistan's Economy??????

I believe that we should concentrate on our economy first.Those who compare India and China

China is a GIANT.

India is way, way behind than China.So,right now ..No comparisons.

(No disrespect intended)

 

[Sonic_boom]

This means that China's economy is three times larger than India.

We are just 10-15 years behind china so no big deal.
btw congrats china

 

[below_freezing]

We are just 10-15 years behind china so no big deal.
btw congrats china

India is 20 years behind. In terms of physical infrastructure, India is probably only 15 years behind, but in terms of thought process and industrial culture, India is 25 years behind, so take the average and it's 20.

 

[cross1993]

India is indeed rising but the country is still beset by many social problems and poverty. One case highlighted in the news is that Women in general feel very unsafe because of the rampant rape crimes being carried out officially or unofficially.
What the huge nation lacks is a revolution that would eradicate the caste system, poverty and corruption.