Nestlé China posts record sales in 2000
In 2000, Nestlé's total sales in China shot up 40% from the previous year, matching Russia for the largest sales increase among the company's worldwide operations. Nestlé currently has 18 factories and about 8'000 employees in China. The company's localization plan stresses the utilization of ingredients produced in China, such as coffee beans grown in Yunnan and milk produced in Inner Mongolia and northeast China. This plan also calls for the hiring of primarily Chinese labor; currently, there are only 90 non-Chinese employees in Nestlé's Chinese factories. The company will soon establish a research-and-development center in Shanghai, but is otherwise not planning to expand its facilities in China. Instead, it is focusing on raising output at its 18 plants, which distribute products throughout Asia. (ChinaOnline, 1 March)

Customs directors to be audited before leaving positions
Directors at all levels of China's customs will be required to undergo an auditing process prior to leaving their position. According to new measures, customs officials have been declared the latest focus of the country's ongoing efforts to fight governmental corruption, while strengthening overall supervision and management. (China News Service, 26 February)

35 of 52 Gansu securities brokerages shut down
After investigation of 52 companies trading securities and futures by the authorities in Gansu province, 35 of them were shut down and forced to stop illegal activities and return money to clients, the Feb. 23 Fazhi Ribao (Legal Daily) reported. (ChinaOnline, 26 February)

Shanghai to build international auto centre
Shanghai plans to invest RMB 35 billion to develop the automobile manufacturing industry, which is one of six pillars of industry defined by the city government. By the year 2005, the city hopes to increase the total production value of the automobile industry to RMB 150 billion. That number would result from an annual growth rate of 18% and would constitute 14% of the city's total industrial production value in 2005. (ChinaOnline, 28 February)

Buoyant 2000 giving way to slower growth
In releasing its final statistics for last year, China has confirmed its economy grew at a brisk 8% last year but warned that slowing exports and weak domestic demand could cool the pace. The State Statistical Bureau said gross domestic product growth could be between 7% and 8% this year, though other economists said that may be slightly optimistic. (SCMP, 1 March)

MOFTEC expects WTO entry in October at the earliest
Minister Shi Guangsheng of the Ministry of Foreign Trade and Economic Cooperation, said he doubts a news report that claimed the country will gain WTO membership before this summer. In fact, he suggested that the earliest possible date of entry to the WTO would be more likely around October or November. (ChinaOnline, 1 March)

13 Chinese provinces to be modern by 2050
13 Chinese provinces and municipalities are on track to become fully modern by 2050. 18 other provinces and autonomous regions aim to modernise by 2060, according to a Chinese Academy of Sciences publication released on Wednesday. China is determined to keep up with other developed countries. (China Central TV, 1 March) I just couldn't help myself including this one.

Securities market opens wider to insurance funds
China's securities market opened wider to insurance funds as three insurers were given the go-ahead to invest more of their money in securities investment funds. China Insurance Regulatory Commission has decided to allow Ping An Insurance Company of China, New China Life Insurance Company and the Manulife-Sinopec Life Insurance Co to invest all their premium income from unit-linked products in securities funds. (China Daily, 2 March)

Economy focus of CPPCC session
The Chinese People's Political Consultative Conference, the country's most important adviser to the development of economic and social policy, convened for its annual meeting. CPPCC members are currently focusing primarily on economic issues. Development of central and western China, rural work and agriculture, supervision of the financial order, and growth of the non-State economy and the high-tech industry are among the topics of greatest concern to the CPPCC. (China Daily, 2 March) The CPPCC is a consultative group with no real political power, although members can sometimes be more outspoken than NPC members.

B-share rally continues for three consecutive days
China's stock markets surged for three consecutive days as Chinese investors rushed to buy B-shares when trading resumed after a six-day suspension to make preparation for the opening of B-share trading to domestic investors. Most B-shares hit their maximum 10% allowed increase for three days in a row. Chinese banks were swamped with customers transferring their foreign exchange into B-share trading accounts. Investors opened some 320'000 new accounts in the first two days of the week, surpassing the total number of accounts opened in the past decade. Chinese residents are estimated to hold about 75 billion US dollars in foreign currency deposits. (Xinhua, 2 March)