U.S Commercial Service - American Embassy, Beijing
Vol. 2 No. 180
The China Commercial Brief is a biweekly publication featuring summaries about developments in China's various commercial sectors, tips on doing business in China, and U.S. Embassy news. This publication is free of charge; please forward it to your colleagues and friends who are interested in China.
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Editor: Matt Gettman
Contributors: CS Chengdu, Ye Xu, Shujuan Cao, Jing Qiu, Hongying Cai
News Briefs
In addition to the article summaries provided by CS Beijing, our four China branch offices - Chengdu, Guangzhou, Shanghai and Shenyang - submit summaries of commercial articles from their local press to the CCB on a rotating schedule. This week we are pleased to feature a contribution from our Chengdu post.
1. Nuclear Power Station with USD 4.9 Billion Investment to be Established in Sichuan
2. China’s Demand for Petroleum will Increase by 2010
3. The Annual Output of Internet Café (Wang Bar) in China is USD 2.3 Billion
4. China's Central Television opens IPTV Channels
5. Olympics Boosts Beijing's Tourism
1. Nuclear Power Station with USD 4.9 Billion Investment to be Established in Sichuan
According to the news from the Nuclear Power Station Appraisal Seminar in Chengdu August 4-5, 2005, Sichuan’s first nuclear power station has passed the appraisal and will be established in Pengan County, Nanchong, Sichuan Province.
According to nuclear experts the Sanba Town site in Pengan County is well situated for a nuclear power station in terms of technical and economic data. Located beside the Jialing River, Sanba Town has rich water resources, convenient transportation, stable geological conditions and a favorable climate. Also, the peninsular position of the nuclear power station site will make it easier for management.
The Jialing River runs through Pengan County for a length of 89 km and a downstream hydropower station will satisfy the nuclear power station's water usage. As for transportation network, Sanba Town is located 33 km from the Nanchong Gaoping Airport and 15 km from the Nanchong Outskirts Expressway. The completion of the Expansion Project of Da-Cheng Railway Duplication Line will not only increase the railway's transportation capacity but also be of great benefit to the nuclear power station. In addition, Jialing River is suitable for navigation all year around and the canal revitalization projects will meet the demand for logistics of large and heavy goods.
In terms of power transmission, the Sanba nuclear power station is located 2 km from a power station and 10 km from the State East-West Power Transmission network. The short distance to the power network will help reduce nuclear power project investment and production cost.
The investment for Sichuan Nuclear Power Station will be USD 4.9 billion (RMB 40 billion). When the project is completed, the nuclear power station will give a great impetus to the GDP of Nanchong city, Sichuan province and even the western region of China. The local governments have paid high attention to the project and will try to finish all related documents and preparation work for an early approval from the central government.
(Source: Sichuan Economics Daily,08/07/2005 - Prepared by CS Chengdu)
2. China’s Demand for Petroleum will increase by 2010
According to the forecast by the Deutsche Bank, by 2010, China’s daily demand for petroleum will reach 9.3 million barrels, increasing 37% over 2005.
Demand for petroleum is highly related to GDP and per capita income increase. China’s demand for imported petroleum increased rapidly. In 2004, China surpassed Japan and became the second largest petroleum consumer in the world.
In the past ten years, China’s daily demand for petroleum increased sharply from 3.28 million barrels to 6.79 million barrels as of today.
(Source: China Business Times, 08/10/2005– Translated by Ye Xu)
3. The Annual Output of Internet Cafe (Wang Bar) in China is USD 2.3 Billion
According the Internet cafe improvement and planning office of the culture development center of the Ministry of Culture, by the end of April 2005, China total had registered 113 million Internet cafes. The average volume of people visiting the Internet cafes is 40 million every day; the total spent is USD 2.3 billion (RMB 25.7 billion).
There are a total of 8.28 million pieces of computer equipment in those Internet cafes, and there are more than 1 million employees supporting these cafes. Every year the Internet cafes have created the indirect incomes for the related industry of USD15.9 billion (RMB 128.8 billion). Rate: USD 1=8.098 RMB
(Sources: China Information World 08/08/2005- Translated by Shujuan Cao)
4. China's central television opens IPTV channels
On August 8, 2005, the China Central Television (CCTV) officially introduced its first two interactive channels on tv.cctv.com.
The two channels, one on news and the other on recreation, will provide interactive programs on line as well as chat-room services.
CCTV.com started in 1996 and now has 36 channels. In 2004, CCTV began to prepare 31 interactive channels, which are now mostly operating on a trial basis.
Interactive news has been a long-awaited and much-talked-about industry in China. Many domestic and overseas entrepreneurs are eyeing this lucrative, potentially huge market in China.
(Sources: CEIS News 08/08/2005- Translated by Jing Qiu)
5. Olympics Boosts Beijing's Tourism
As an ancient capital and the political and cultural center of modern China, tourists view Beijing as a charming destination.
In 2004 alone, the metropolis received over 3 million overseas and 100 million domestic tourists, creating a total income stream of 130 billion yuan, or over 16 billion US dollars for the local economy.
As the 2008 summer Olympics are approaching, Vice Director of the Beijing Tourism Bureau Xiong Yumei said Beijing's tourism industry was now facing an unprecedented opportunity.
"According to our estimation, the number of tourists will increase by 7 to 8 percent from 2005-2007, and the rate of increase in 2008 will reach 13 per cent. By then, Beijing will see 4.4 million overseas and 150 million domestic tourists traveling to the city," he said.
According to Xiong: "Beijing now has 630 high-class hotels ranked by stars. The government promised when bidding for the Olympics that Beijing would build 800 high-class hotels by 2008. We'll reach that goal by building some new hotels and reconstructing some old ones."
(Source - China Daily 8/19/2005)
Consulate News: Chengdu
In keeping with our goal of making the CCB a more integrated publication, our four China branch offices - Chengdu, Guangzhou, Shanghai and Shenyang - submit consulate news to the CCB on a rotating schedule. This week, we are pleased to feature a contribution from CS Chengdu.
On July 6, 2005, the Grand Opening Ceremony for Rockwell Automation Chengdu Office was held in the Chengdu Lido Sheraton Hotel. This office is Rockwell Automation's 14th office in China. After the ceremony, the road show for Rockwell Automation Products opened for attendees. More than 400 people attended the ceremony and the road show including Rockwell Automation China's Chief Representative, Chengdu Assistant Mayor, Chengdu Consulate Econ Officer and other Chinese official representatives.
For more information on CS CS Chengdu and the CS Chengdu consular region, visit our website at http://www.buyusa.gov/china/en/chengdu.html
DISCLAIMER: CS China does not guarantee the veracity of the original sources of our news summaries. While we do our best to report accurate and timely articles and news sources, you should always check the source for further information.
The China Commercial Brief is a free newsletter published by the U.S. Embassy - Beijing.