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China May Foreign Investment Rises China May Foreign Investment Rises(0)

Investment rose 27.5 percent to $8.13 billion, the Ministry of Commerce said in a statement Saturday. Foreign investment in the first five months of the year rose 14.3 percent to $38.9 billion, the ministry said.

China?s economy will expand by 9.5 percent this year, three times the pace of the U.S, the World Bank forecast this week.

Retail sales rose by more than 18 percent for the third straight month in May, government data showed this week. Passenger-car sales last month rose 26 percent from a year earlier to 1.04 million units, the China Association of Automobile Manufacturers said on June 8.

Foreign direct investment started to climb in August last year after falling for 10 straight months because of the global financial crisis. Asia?s ?bright growth prospects,? coupled with low interest rates in major economies, may attract capital to the region and increase overheating risks, the International Monetary Fund said June 9.

Investment may top $100 billion this year, Wang Zhile, director of the commerce ministry?s research center on transnational corporations, told the China Daily Saturday. That would exceed the previous record of $92.4 billion achieved in 2008.

Source : Konaxis

ICBC Brazil ICBC Brazil(0)

“We have plans to operate in Brazil, however, so far we did not decide how to operate it,” said ICBC Chairman Jiang Jianqing, quoted by the newspaper.

In March, the Brazilian central bank authorized the state run Bank of China Ltd. to operate in Latin America’s largest nation.

Source : Konaxis

China Property Prices Rise China Property Prices Rise(0)

The 12.4 percent gain compared with a record 12.8 percent increase in April from a year earlier, the National Bureau of Statistics said in a statement on its website. The data series, covering 70 cities, began in 2005. The value of sales slid 25 percent.

Officials may introduce a trial property tax after already tightening sales rules for developers, raising some down payment requirements and restricting loans for multiple-home buyers, according to state media.

Last month marked the first slowing in the annual rate of property price gains. On a monthly basis, values advanced 0.2 percent.

Sales in Beijing, Shanghai and Shenzhen, the nation?s wealthiest cities, fell as much as 70 percent in May from the previous month and land sales for residential development projects in 70 Chinese cities fell 14 percent, the official Shanghai Securities News reported earlier this month.

Besides industry-specific measures such as requirements for larger down-payments for some homes, the government on May 2 raised banks? reserve requirements for the third time this year to contain overheating risks after first-quarter economy expanded at the fastest pace in almost 3 years.

Source : Konaxis

Raise Minimum Wage Shenzhen Raise Minimum Wage Shenzhen(0)

The minimum monthly wage will rise to 1,100 yuan ($161) for full-time workers, while hourly pay for part-time employees will climb to 9.8 yuan ($1.44), the government said in a transcript of a press conference posted on its website.

More than 20 Chinese provinces and cities raised minimum wages this year, the city government said. Higher pay will help companies to recruit workers and also to boost consumption, it said.

Source : Konaxis

China Software Piracy China Software Piracy(0)

“We were seeing progress over a number of years … but that has essentially stalled and the (piracy) rate has been roughly flat for the last three years,” said President Robert Holleyman of the Business Software Alliance.

Microsoft’s Steve Ballmer, Shantanu Narayen of Adobe, Carl Bass of Autodesk and Enrique Salem of Symantec are among the chief executives meeting with Treasury Secretary Tim Geithner, Attorney General Eric Holder, Office of Management and Budget Director Peter Orszag.

Microsoft, which has continued doing business with China despite the piracy, recently won a lawsuit in Shanghai against a local insurance company that was running 450 copies of pirated Microsoft software.

The BSA is asking the Chinese government to ensure that government offices and businesses use only licensed software and to pledge to refrain from compelling intellectual property transfers as the cost of doing business, in addition to other steps.

Source : Konaxis

BYD European Headquarters in Germany BYD European Headquarters in Germany(0)

Germany is the preferred location,? Henry Li, general manager of BYD?s auto export trade division, said in a telephone interview. The decision depends on BYD ?finding the right property and place? and will likely be made before the end of the year, Li said.

Shenzhen-based BYD plans to start selling electric and hybrid cars in western Europe next year and become the first Chinese company to market alternative energy-powered vehicles in the region. The E6 electric car is among the models BYD plans to introduce, Paul Lin, a company spokesman, said in March. The carmaker may eventually design and build cars in Europe, he said.

BYD signed an agreement with Stuttgart, Germany-based Daimler AG, to develop electric vehicles in China last month. Daimler, the world?s second-biggest maker of luxury cars, and BYD will invest 600 million yuan ($88 million) in the equal partnership.

Source : Konaxis

Honda Strike China Subsidiary Honda Strike China Subsidiary(0)

The three auto-assembly ventures–Dongfeng Honda Automobile Co., Honda Automobile (China) Co. and Guangqi Honda Automobile Co.–will restart operations once they can procure transmissions and other engine related parts from Honda Auto Parts Manufacturing Co., whose workers walked off on May 17. Production of those parts had been fully or partially suspended since.

The workers accepted a pay hike proposed by the parts production company late Friday, a Honda spokeswoman said.

The stoppage of production was a big headache for Honda as it finds it hard to keep up with growing demand for its vehicles with its scarce production capacity in China. The Japanese car maker plans to increase its overall capacity in China to 830,000 vehicles a year from the current 650,000 by 2012.

The pay raise could also squeeze profitability in Honda’s operations in China.

Honda is targeting China sales of more than 630,000 vehicles this year, or up about 10% from 2009.

Source : Konaxis

Home Appliance Trade-In Program Home Appliance Trade-In Program(0)

The trade-in, which started in June last year as part of the government?s $586 billion stimulus package, will also be gradually extended nationwide from the nine provinces and cities currently offering subsidies, the ministry said in a statement on its website.

Since the program began, sales of televisions, refrigerators, washing machines, air conditioners and computers reached 54 billion yuan in the areas covered under the original plan and more than 5 billion yuan of subsidies were handed out to consumers, according to today?s statement.

Gome Electrical Appliances Holdings Ltd. and Suning Appliance Co. reported that the volume of sales under the five categories of products covered by the program surged 94 percent and 62 percent respectively in the nine regions, the ministry said. The two companies? unit sales from trade-ins accounted for more than half of their total sales of such goods since June 2009, according to the statement.

Source : Konaxis

New Procurement Proposal WTO New Procurement Proposal WTO(0)

Yi Xiaozhun, vice-minister of commerce, told WTO members that China would make the offer before the next meeting of the global trade body’s government procurement committee, due in the middle of next month, the officials said.

He was speaking during the WTO review of China’s trade policies, held every two years, at which China faced demands for more transparency in its trade policy and calls to continue liberalizing its economy — to which Yi responded by assuring members that China would continue opening up.

Some members including the United States had questioned China’s “indigenous innovation” policy which they said amounted to a form of “Buy China” favoring domestic producers over foreign suppliers, but Yi said it applied to all companies established in China.

China first applied to join the WTO government procurement agreement in December 2007 but its partners wanted better terms than it first offered.

Worldwide, government procurement accounts for about 23 percent of demand — nearly a quarter of the economy.

China estimates that the share of government procurement in its economy which would be covered by the agreement is much less.

Yi said it accounts for only two percent of gross domestic product because China excludes purchases by state-owned enterprises and limits the definition to purchases using budgetary funds above a certain threshold.

That would still make it worth some 615 billion yuan ($90 billion) a year.

Source : Konaxis

Honda to Raise Wages factory Honda to Raise Wages factory(0)

The workers will receive a 24 percent pay increase to 1,910 yuan ($280 dollars) per month, the Tokyo-based company said in a faxed statement Monday. Most workers have accepted the offer, while talks continue with those who are unsatisfied, Honda said.

Production at all four Honda car factories in the country will remain suspended through at least June 2, with plans beyond that date to be decided Tuesday, the company said in a separate statement. Production of manual transmissions at the parts plant resumed Monday.

The maker of Accord and Civic cars shut down all four of its auto assembly plants in China last week after workers at the parts unit walked out, demanding a pay raise. The strike, the first to stop Honda?s production in the country, may be reducing its output by as many as 3,000 vehicles daily, analysts said.

The carmaker shut two plants in Guangzhou, Guangdong province, on May 24 and factories in Guangzhou and Wuhan, Hubei province, on May 26 after 1,850 workers making transmissions and engine parts at Honda Auto Parts Manufacturing Co. in Foshan, Guangdong, went on strike May 17.

The striking workers had demanded monthly pay be boosted to between 2,000 yuan ($293) and 2,500 yuan, said Yasuko Matsuura, a spokeswoman for Honda on May 27.

China accounted for 17 percent of Honda?s global sales last year, and the brand ranked fifth in China by unit sales in April, according to J.D. Power & Associates.

The parts factory, a wholly owned Honda subsidiary, started production in 2007 and makes transmissions for the Accord, City Odyssey and Fit models, according to the company.

Source : Konaxis

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