300 million suffer dirty water supply
A Ministry of Water Resources survey of more than 700 rivers found 46% were polluted. More than 90% of cities are facing serious water pollution problems. The central government has repeatedly vowed to close factories and build water treatment facilities, but local government officials complain that lost production would destabilise the economy and they have demanded subsidies to clean up the environment. (South China Morning Post, 7 August)

Dependence on foreign hardware, software and net content
A new "Report on State Information Security" underscored the government's growing concern over Western nations' dominance in the areas of computer hardware, computer software and Internet content. The report concluded that the country primarily imports computer hardware and basic integrated-circuit chips for manufacturing communications equipment and that its systems software and support software are basically made from foreign products. Under these circumstances, it is apparent that almost all products-networks, hardware and software-constituting China's information infrastructure are based on foreign core information technologies. (Beijing Evening News, 7 August)

Bank of China to be listed within two years (?)
Bank of China (BOC) president Liu Mingkang said in a recent interview that his bank will undergo a series of restructuring and try to get listed in the stock market within two years. It is still in consideration whether BOC will be listed on the market in Hong Kong or the mainland, he said. (China Daily, 8 August)

High-tech export up 40% in the first half year
The export volume of China's high-tech products reached nearly USD 15.7 billion in the first six months of the year, while the import of high-tech products also witnessed a 35% increase. Among exported high-tech products in the first six months, computer and telecommunications products accounted for 72%. The exported high-tech products accounted for 13.7% of all China's exported commodities. (Xinhua, 8 August)

China uncovers 665 cases of foreign trademark violation in first half of 2000
China's State Administration for Industry and Commerce announced recently that it uncovered 665 cases involving the improper use of foreign trademarks in the first half of this year, 93 cases more than the first half of last year. (ChinaOnline, 8 August)

China giving decade-old vehicles new lease on life
The government will soon change its laws requiring vehicles to be scrapped once they reach their 10th year. Vehicles will not be retired based on their age but rather on inspections performed by auto-administrative bodies. (ChinaOnline, 8 August)

China's top five carmakers more profitable in first half
The total profits of the country's five most profitable automakers rose to RMB 5.6 billion in this year's first half, up 65.7% compared to last year's first half. (ChinaOnline, 8 August)

China to lift control over foreign currency lending rate step by step
The move is the first step the People's Bank of China will take to phase in a market-oriented bank interest rate system within three years. The reform of China's bank rate system will begin with foreign currencies and lending rates, and gradually move to Renminbi currency and deposit interest rates. To prevent any market fluctuations from happening in the cities, the central bank will experiment the reform first in the countryside. (China Daily, 9 August)

China's July industrial output grows 12.8%
China noted the highest rise in industrial output since January last year, driven by continued strong exports to recovering economies in Asia. Industrial production totalled RMB 196 billion in July. In the first seven months of the year, it rose 11.4% from the same period last year to reach RMB 1.3 trillion. Just over half of output from China's industrial enterprises goes to overseas markets. Exports of industrial products grew by 27.4% in July to RMB 117.7 billion and increased 26.6% in the first seven months of the year from the same period in 1999. (China Daily, 9 August)

Three largest airlines to break away from CAAC
Beginning this year, Civil Aviation Administration of China (CAAC) launched the air transport restructuring, which plans to merge the ten CAAC-controlled airlines into three airline groups -- Air China, China Southern Airline and China Eastern Airline. After the restructuring, the three groups will still receive CAAC's supervision, but CAAC can not interfere in their business operation. (China Daily, 9 August)

China's insurance sector reports moderate growth in first half year
China's insurance sector reported premiums totaling RMB 79.6 billion, up 6.7% from the same period last year. According to figures released by the China Insurance Regulatory Commission, premiums from property insurance rose by 9.4% to RMB 32.9 billion, while premiums from life insurance gained 4.9% to RMB 46.7 billion. (People's Daily, 9 August)

Water sector urged to tap foreign investment
China is expected to allow foreign investors into its water infrastructure to tackle shortages that could get worse in the future. A foreign-owned water project called Vivendi Waterworks will begin supplying tap water in Chengdu in early 2002. Similar foreign-funded projects are under way in the cities of Tianjin and Beijing. (People's Daily, 10 August)

Foreign banks to expand RMB business
The Industrial and Commercial Bank of China signed an agreement with 11 foreign banks [none of them Swiss] for RMB transactions and other domestic banking. ICBC will handle banking bills and capital transfer on behalf of these foreign banks, whose own RMB business is restricted to Shanghai, Shenzhen and neighbouring areas. (China Daily, 11 August)

China to limit each province to one international trust
China's central bank, the People's Bank of China, is continuing its campaign to clean up the country's trust and investment sector. Sources say that the fundamental principle of the reform will be "one international trust company for each province". (ChinaOnline, 11 August)

China gives flavor to 10% of world's food additive market
China now produces 10% of all food additives on the world market in terms of total trade value. Several types of food additives produced in China, such as citric acid, xylitol, preservatives and saccharin, have gained significant influence in the world market. (ChinaOnline, 11 August)

China to sell sugar reserves to curb price hike
China is to sell part of its sugar reserves at an open auction on the Beijing sugar market to push down surging prices on the domestic market. All domestic enterprises and foreign trade companies that are allowed to process and trade in sugar will be eligible to apply for a bid at the auction. The move is designed to ease a shortage of sugar supplies caused by frost strikes in sugar production bases in south China last winter and reduced area of sugar crops this year. (Xinhua, 11 August)
According to other sources, the soaring sugar prices are a result of the government's efforts to slash production capacity by closing down small sugar refineries. Officials have expressed concerns that if sugar prices continue to rise, those sugar refineries which have already been shut down may be tempted to resume operations. This would wreck the government's efforts to restructure the whole industry. (South China Morning Post, 12 August)

Brighter future for gold trade
The government is considering liberalizing the tightly-controlled gold market. Changes may include the establishment of a national gold exchange before the end of the year or at the beginning of next year, as well as the permission for commercial banks to be involved in gold transactions, something they are currently banned from doing. China ranks as the fourth largest consumer on the world's gold markets. It buys about 200 tons each year. It also ranks as the fifth largest gold manufacturer, producing 170 tons a year. (China Daily, 11 August)

China plans new dams
China, whose Three Gorges Dam on the Yangtze River already is the world's largest hydroelectric project, plans to continue its spending to build additional large dams over the next five years for purposes of flood control, energy production and boosting its water supply, as part of the country's economic development. (ChinaOnline, 11 August)