China, Russia to start building transnational oil pipe '03
China and Russia are expected to start construction of a transnational crude oil pipeline next year following the recent completion of China's feasibility study on the project. The pipeline is an important element for China in its strategy to diversify its crude oil import sources to safeguard its energy security. Currently, about 40% of China's crude imports come from the Middle East. (Dow Jones Newswires, 26 August)

Chinese carmakers' profits drive off the charts
The nation's 15 key automakers earned total profits of RMB 10.57 billion during the first half of this year, an increase of 33.70% from the same period of last year. The profit growth mainly resulted from the increasingly strong demand for vehicles on the domestic market. The government's non-tariff measures to control vehicle imports, in particular the control on import license distribution, also contributed to the profit growth of domestic manufacturers, despite the nation's tariff cuts at the beginning of this year. (China Daily, 27 August) So much for WTO opening the Chinese market…

China to admit entrepreneurs to Party Central Committee
China plans to admit a handful of prominent entrepreneurs into the central committee of the Communist Party, the boldest proposal yet in Beijing's fledgling initiative to change the fundamental nature of the ruling party. A few captains of state-owned enterprises and state banks have been central committee members in the past, but the idea of admitting independently wealthy businessmen into the higher levels of the party is ground breaking. (FT, 27 August)

Christ expands its client base
Swiss-based Christ Ltd., one of the world's leading suppliers of advanced water treatment systems, is to expand its presence in China by providing more customized products and services. Christ Water Technology (Shanghai) Co Ltd opened its office earlier this month in the city's Zhangjiang High-Tech Park. Established in 1939 with its headquarters in Aesch, Switzerland, Christ Ltd. became a member of BWT Group of Austria at the beginning of this year. It provides systematic solutions for water purification to industries like semiconductor, pharmaceutical, power generation, food and beverage, industrial process and waste water treatment, municipal drinking and sewage processing. (China Daily, 28 August)

China to open garbage disposal to private sector
China has decided to end government monopoly of public garbage disposal and open it up to the private sector. Rapid urbanization has increased garbage in Chinese cities by 5 to 8% every year. Though the%age of treated garbage has soared to over 58% from 2% in the early 1980s, there is still more work needing to be done. The Construction Ministry is already inviting joint venture, cooperative, foreign-funded and non-governmental enterprises into the sector. (People's Daily, 28 August)

China to develop financial derivatives market
The Shanghai Futures Exchange (SFE) has applied to the China Securities Regualtory Commission to open a stock index futures market. China lags far behind in the development of derivatives markets. Besides stock index futures, the SFE is also considering other derivatives, such as interest futures and foreign exchange rates futures. (People's Daily, 28 August)

China to adopt policies to stimulate consumption
The Chinese government is to adopt a series of policies to encourage the people to spend more, so as to sustain a healthy development of the economy. The government will accelerate the issuing of new policies on the purchase of automobiles and expansion of the automobile market. The government will expand construction of low-income housing so as to gradually ease the housing shortage for poor urban residents. At the same time, it will further relax controls on the housing market by issuing ownership certificates to privately owned buildings. The government will also continue to improve the infrastructure of tourism industry, and improve standards of service in the tourism industry. (People's Daily, 28 August)

China to set long-term employment goal
China is aiming to limit registered unemployment rates in urban areas to 4.5% this year as part of its long-term employment policy. Official figures show the rate of urban unemployed remained within 4% in the first half of this year. Meanwhile, the number of workers laid off from state-owned enterprises was 4.64 million at the end of June, down by 510'000 from the end of 2001. The monthly average figure of registered unemployed was 3.48 million. (People's Daily, 28 August) These are official figures.

China strives to ensure 2002 financial target
The central government's income increased by 5% in the first seven months this year, while the targeted growth rate was 7.7%. China's national income grew 10.6% during the first seven months this year, a slower rate than last year. National expenditure increased 18.7% year-on-year, which is higher than the growth rate of its earnings. At the beginning of this year, the Chinese government planned to keep the central target deficit within RMB 309.8 billion. (People's Daily, 28 August)

Top Shenzhen SOEs on market
Shenzhen has launched an ambitious plan to invite foreign investors to take stakes in its five best state-owned enterprises to help meet the challenges after China's entry into the WTO. The move is believed to make Shenzhen one of the first mainland cities to use international tenders to sell off SOE stakes. Shenzhen started early on SOE reforms but lagged behind other cities in recent years. The main purpose of the sales is not to raise money but to bring in strategic investors who would help increase competitiveness and enhance the asset values of SOEs. (SCMP, 29 August)

State body honors star companies
The All-China Federation of Industry and Commerce - the government organization spearheading the private sector - has announced the mainland's top 500 private enterprises for last year amid growing attention to the role played by the private sector in creating jobs and propelling economic growth. China's top 500 private-owned enterprises had registered an aggregate 52% increase in revenue last year to reach RMB 497.04 billion. Aggregate net profit surged 36% year on year to hit RMB 26.79 billion. The study puts leading computer manufacturer Legend Group Holdings at the top of the list for the fourth year running, in terms of ability to generate revenue, tax contributions and net profit. It is estimated the private sector accounts for 43% of GDP. (SCMP, 29 August)

Yamaha's piracy victory
Signalling what many foreign investors hope will be greater resolve by Beijing to battle copyright piracy, Yamaha Motor of Japan won a landmark court judgment against a Chinese company it accused of manufacturing copied versions of its motorcycles. A Chinese court ruled in favour of Yamaha and awarded USD 109'000 in damages. It was one of the largest awards ever issued in a Chinese copyright-infringement case. (FEER, 29 August)

20% of world's home appliances made in China
China's current output of electric home appliances accounts for 20% of the world's total. Chinese home appliances currently take the following shares in the global market: washing machines, 25%; microwave ovens, 51%; and air conditioners, 60%. From January to June, the total export value of electric home appliances was USD 4.44 billion, an increase of 28.09% over the same period last year. (ChinaOnline, 29 August)

Chinese courts to hear administrative lawsuits filed by foreigners
From Oct. 1 this year, foreign businesses or organizations will enjoy the same rights as their Chinese counterparts in the filing of lawsuits against administrative decisions concerning international trade. This was stipulated in a regulation promulgated here Thursday by the Supreme People's Court, China's first-ever judicial explanation for courts dealing with administrative cases of international trade related to the WTO rules. (People's Daily, 30 August)

China expected to sell stakes to foreign companies
The Chinese government is likely to allow the sale of government stakes in publicly traded state-controlled enterprises to foreign companies. China will also give permission to multinational corporations to sell shares in their Chinese operations to Chinese citizens. Taken together, the two measures draw China more into the global economy and give the country's securities markets a considerably greater role in bringing Western investment and management practices to businesses. China is expected to sell only minority stakes in the publicly traded state-controlled enterprises to foreigners, and would most likely require that the stakes be held for long periods as strategic investments. (China Daily, 30 August) Now timetable for those measures yet.