Organized crime more rampant as China opens its economy
As China opens its economy, gangsters are getting more organized, more dangerous and smarter at finding ways to cash in. Though most Chinese gangs remain small, some in the bigger cities have become larger and more sophisticated - with more members, a clearer command structure and better weaponry. (Dow Jones Newswires, 18 March)

Fixed-asset investment soars 24% as state enterprises go on spree
China's January-February investments in fixed assets, primarily by state-owned enterprises, rose 24.5% year on year to RMB 140.8 billion. Economists said the main factor in the surge was the central Government's fiscal policy. (SCMP, 19 March)

Mainland investments USD 50 billion, says Taiwan bank chief
The Governor of Taiwan's Central Bank confirmed that Taiwanese firms had sunk at least USD 50 billion into mainland investments since the late 1980s, a figure that differed widely from earlier government estimates. The exact amount of investment has been difficult to determine due to Taipei's longstanding ban on direct remittances and commercial transactions with mainland China. (SCMP, 19 March)

Guangdong loses top wealth slot to Zhejiang
Guangdong is no longer China's richest province, researchers have concluded after a comparative study of coastal provinces. According to the income survey of China's coastal provinces, the average annual disposable income of Zhejiang residents is the region's highest, after increasing 12.8% last year to RMB 10'464. The average of Guangdong residents grew just 6.7% - the lowest growth rate of any province surveyed - to RMB 10'415 (SCMP, 19 March)

Reforms needed to join modern economy - OECD report
China needs to start substantial reforms of its agricultural and industrial sectors if they want to fully integrate into the world economy according to a new OECD report. The report said China has three priorities: restoring solvency to the financial system; improving market mechanism to restructure the business sector and establishing public finances on a sound and sustainable basis. Beijing's economic strategy has been to create channels for development outside of the state sector allowing a capitalist system to operate within a communist one. The program has been highly successful but, "It has become increasingly apparent that its ability to push China's development further is coming to an end." (www.cbiz.cn, 19 March) http://www.oecd.org/pdf/M00027000/M00027393.pdf

China Merchants Bank IPO to be nation's second largest
China Merchants Bank is to launch one of China's largest initial public offerings when it floats 1.5 billion domestic A shares. The long-awaited flotation will make the bank the fourth public bank in China after Shenzhen Development Bank, Pudong Development Bank and Minsheng Bank. The shares will be listed on the Shanghai Stock Exchange. Bank officials said the IPO is expected to raise more than RMB 10 billion. (China Daily, 20 March)

Fixed asset investment rising
China's fixed asset investment rose by a year-on-year 24.5% to RMB 140.8 billion during the first two months of this year. (China Daily, 20 March)

Citibank in China breakthrough
Citibank became the first wholly foreign bank to win central bank approval to offer foreign currency services to local customers in Shanghai. Thus, China has for the first time given a foreign bank access to local customers in a major mainland city as part of its WTO requirements. China is supposed to allow full market access in the banking sector within five years, removing all geographic and other restrictions. In two years, foreign banks will be able to conduct local currency business with Chinese enterprises and with local individuals three years later. (SCMP, 20 March)

Economist doubts GDP numbers
Other countries should not envy China's reported growth rates because they are not true, according to Lester Thurow, professor at Massachusetts Institute of Technology. "By the time of the late '90s, the PRC statistics are simply unbelievable, they are not true." Mr Thurow said official figures show GDP growing while energy consumption was plunging. "Why doesn't that happen anywhere else in the world?" As well, reported inflation of up to 10% suddenly evaporated in 1997. "How does the rate of inflation go from 10% to zero in a year unless you have a recession?" (SCMP, 20 March)

Shenzhen planning to cut price of doing business
The Shenzhen Government has outlined plans to cut the rising cost of doing business in the city, targeting soaring property prices and salaries. The city has become one of the most expensive places in the mainland in which to do business, hampering efforts to lure new businesses and retain existing operations. (SCMP, 20 March)

Center for promotion of international procurement set up in Shanghai
The Center for Promotion of International Procurement was inaugurated in Shanghai. The center was jointly set up by foreign economic departments in Shanghai. It is designed to work out support policies, standardize modern logistics and promote relevant service trades. Along with the establishment of the new center, Shanghai International Procurement Services Co. Ltd., was also launched. The new company will provide multinationals with services for starting up or operating global procurement branches in Shanghai. (People's Daily, 21 March)

Labor leaders held amid violence
Police in the industrial northeast of China detained three labor leaders after violent clashes in two cities involving thousands of laid-off workers protesting against unpaid salaries and welfare benefits. The protests are reportedly the biggest organized demonstrations since the pro-democracy crackdown in 1989. (SCMP, 21 March)

Citibank Shanghai branch cashes in on locals
Citigroup, the world's largest financial conglomerate, received its first Chinese customer, making it the first wholly foreign-owned bank to gain direct access to domestic clients. It is the only fully overseas-funded financial institution to get the green-light from China's central bank to provide foreign currency services to Chinese customers. The license is for foreign currency dealings with Chinese customers, a service promised to international financial institutions under China's bid to enter the WTO. (China Daily, 22 March)

China Brilliance, MG Rover enter Car-making joint venture
British car maker MG Rover entered into a joint venture with Chinese counterpart China Brilliance to develop and produce automobiles. The alliance will enable MG Rover cars to be produced in China, while the British group will also be able to develop vehicles based on China Brilliance models. For China Brilliance, it adds yet another name to the list of automakers it has teamed up with, including Toyota, General Motors, BMW, London Taxi International, Mitsubishi and Renault. (People's Daily, 22 March)

Life insurance sees a breakthrough in Chinese market
Revenue from life insurance rose by 32% in 2001 to RMB 28 billion. This rather new financial industry in China tapped for the first time in a major way into the USD one trillion the Chinese have saved. (www.cbiz.cn, 22 March)

Authorities seen as taking softer stand on unrest
Instead of cracking down on dissent, as they have in the past, authorities appear mostly to have stood by, allowing thousands of workers at Daqing in Heilongjiang to stage daily protests since March 1, and tens of thousands to protest in Liaoyang, Liaoning province, this week. These protests have surprised many analysts, who were struck by their scale and the fact they could last for days without being crushed by police. (SCMP, 22 March)

China: Wirtschaftsbericht Frühjahr 2002
Die Schweizer Botschaft in Beijing hat ihren jüngsten Wirtschaftsbericht fertiggestellt. Interessenten können den Bericht, der nur in deutscher Sprache vorliegt, bei der Botschaft direkt anfordern (vertretung@bei.rep.admin.ch) oder finden ihn auf www.osec.ch.