U.S. Commercial Service - American Embassy, Beijing
Vol. 2 No. 128
The China Commercial Brief is a biweekly publication including 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: David Snodgrass
Contributing Specialists: CS Chengdu, Merry Cao, Peng Aiqun, Bai Ying, Sherry Cai, Nancy Xu
News Briefs
In the interests of providing news from all over China, 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, in addition to the five article summaries provided by CS Beijing.
1. Qiang Jian Airport in Chongqing to Begin Construction in October 2003
2. Guangdong Province Implement's the First Local E-commerce Law
3. Provisional Procedures for Foreign Debt Management
4. China's Sky Open for Private Planes
5. Beijing Olympics Looking for Sponsors
6. Insurance Premiums in China Grow in 2002
1. Qiang Jian Airport in Chongqing to Begin Construction in October 2003
The Qian Jian Planning Commission has announced that the Qiang Jian Airport feasibility study has been completed and will be submitted to the State Planning Commission for approval. Construction is expected to start in October, 2003 and be completed in 2006. The new airport is located in Chongqing Municipality.
This project will have a total investment of RMB 330 million (US$ 40 million), and has been planned for ten years. In 1993, this project was approved at national level, but construction was continually postponed. After the Central Government initiated the “Develop the West” program, the Qian Jiang Airport Construction Project was finally accepted as the part of the Fifteen-Year Plan by Chongqing and the Central Government.
Qian Jiang Airport will play an import role in improving transportation in Western China. Its air connections between Chongqing Jiang Bei, Wanzhou, and Huan Zhang Jia Jie airports will facilitate travel to Hubei, Hunan, Guizhou, Shanxi Provinces and improve the Western China economy
(Source: Chongqing Daily, 1/23/03 - Translated by CS Chengdu)
2. Guangdong Province Implement's the First Local E-commerce Law
Guangdong, one of China's most prosperous regions, generates one eighth of the country's total E-Commerce turnover. In 2002, the province's E-Commerce turnover reached $2.4 billion. On February 1st, 2003, China's first local E-commerce law was implemented in this province. The new law not only enhances the management of legal status on electronic signature but also regulates the E-Commerce certification agencies and E-Commerce service providers.
The new law has 7 chapters and 34 items. Under which, all E-commerce service providers (ESP) are required to register at the Guangdong IT supervisory authorities. ESP must provide authentic information to customers and inform them of the risks involved in making electronic transactions. In addition, E-Commerce service providers must keep any information from the third parties as confidential cases.
A nation-wide E-Commerce law was proposed by the China National People's Congress in 2002. The local governments of Shanghai, Beijing and Hainan have already released special rules on E-Commerce prices, digital certificate authentication and E-Commerce supervision.
For details regarding local law, please review the website:www.gd.gov.cn or contact the Guangdong Informatization Bureau
Tel: (86-20) 8313-4236
(Source: CS Beijing, 02/10/03 - Merry Cao)
3. Provisional Procedures for Foreign Debt Management
State Development and Planning Commission (SDPC), Ministry of Finance and State Administration of Foreign Exchange (SAFE) jointly announced ‘The Provisional Procedures for the Foreign Debt Management’ on January 8, 2003, which will be effective from March 1st, 2003.
There are three new characteristics of the Provisional Procedures. Firstly, it is the first time that China defines regulations on various foreign debts management from an overall perspective. Secondly, the Provisional Procedures carries out classified management in accordance with different foreign debts. The sovereign foreign loans will be borrowed by the state on a centralized basis. The end users will shoulder the relevant repayment responsibilities according to the transferring loan agreement. The international commercial loans will be managed according to different categories, i.e., the state-owned commercial banks, Chinese enterprises, foreign funded enterprises and foreign funded financial institutions. Thirdly, the Provisional Procedures will strengthen the foreign debt supervision.
Foreign invested enterprises can borrow from foreign lenders directly. However, the total accumulated medium/long term foreign debt plus the outstanding balance of short-term foreign debt must stay within the difference between the approved total project investment and the registered capital. Any amount beyond this difference must be re-examined by the original authority of approval.
(Source: Financial News, 02/11/2003 - Translated by Peng Aiqun)
4. China's Sky Open for Private Planes
To be implemented on May 1, 2003, the General Aviation Flight Control Regulation makes traveling by private planes possible in China. According to the regulation, individual as well as enterprises can submit private flight applications to the air traffic control. After the implementation of the regulation, people can apply for interim airspace division at once and can fly on defined routes for as long as a whole year. Flight applications for defined routes need to be submitted one day in advance, and temporary flight routes three days in advance.
In addition, the time required for approval will be greatly shortened. The approval will be granted in six hours, instead of seven days previously. In an emergency, for rescuing or disasters aid, only one hour is required for flight claim and approval will be granted within 15 minutes before take-off. Regarding flights in lower altitude space, the official said this issue is still under discussion.
(Source: China Aviation News, 02/09/03 - Translated by Bai Ying)
5. Beijing Olympics Looking for Sponsors
BOCOG, in association with the State General Administration for Quality Supervision and Inspection and Quarantine, held a meeting to discuss the Olympic brand on January 27th in Beijing. Over 500 domestic enterprises attended the meeting.
The Vice Director of Marketing Department of BOCOG, Yuan Bin announced that the Beijing 2008 marketing plan will be launch in May this year, and will include three parts: sponsors plan, suppliers plan and franchisers plan. Sponsors will provide the funds, suppliers will provide the material objects and franchisers will provide Olympic Games souvenirs in the way of paying franchise fee.
19 industries were selected as potential sponsor candidates. Those industries include are banking, insurance, pharmaceuticals, garment, automobile, express delivery, freight, retail, computer, telecom, network equipment, software development, chemistry for everyday use, household electric appliances, petrochemicals, tourism, communications equipment, aviation, beer and wine industries.
(Source: Olympic Economy, 01/29/03 – Translated by Sherry Cai)
6. Insurance Premiums in China Grow in 2002
According to China Insurance Regulatory Commission (CIRC), China’s insurance premiums topped US$36.9 billion in 2002 (a 44.7 per cent increase over last year.)
In 2002, life insurance premiums soared by 59.8 per cent to US$27.5 billion, while non-life insurance premiums grew by 13.6 per cent to US$9.4 billion with insurance depth of 3 per cent and insurance density of US$28.
New insurance products and sales channel boosted China's insurance industry. Premium from life insurance products with dividend reached US$13.5 billion accounting for 49.3 per cent of total life insurance premium. Life insurance premium from bank agents reached US$4.7 billion accounting for 17.1 per cent of total life insurance premium. Selling insurance policies through bank agents became one of the important insurance sales channels.
(Source: China Securities Journal, 01/25/2003)
Embassy News
On February 13th, 2003 at 6:00 a.m. CS Beijing officially launched the "Breakfast With China" video-teleconference series. The video-teleconference was CS Beijing's first attempt at a multi-city connection, which had an audience of more than 50 U.S. business people across three different time zones in Los Angeles, Denver and Saint Louis. The program was offered in partnership with the U.S. Commercial Service's Export Assistance Centers, who were responsible for recruiting the participants.
Commercial Counselor Lee Boam briefed the US companies on the implications of China's entry into the WTO, including important tips for entering the Chinese market. Commercial Officer Kellie Holloway fielded questions regarding the environmental technologies market, while Information Specialist David Snodgrass offered information regarding the Beijing 2008 infrastructure projects. The briefing received positive feedback, with several participants requesting a copy on video. CS Beijing has already booked "Breakfast With China" video-teleconferences through May. Interested companies should contact their nearest Export Assistance Center to schedule a briefing.
For pictures from the event, visit our website at http://www.buyusa.gov/china/en/vtclaunch.html.
On January 22-24, the US Commercial Service - Beijing participated in Stadia & Arena Infrasport: 2003 at the China World Trade Center in Beijing. The event was the show's debut in China, and focused on the construction of Olympic stadiums for the Beijing 2008 Olympics.
For the whole story, including pictures taken at the show, visit our website at http://www.buyusa.gov/china/en/stadiabooth.html
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:
CINCPAC Admiral Thomas Fargo Visits Chengdu: Commander-in-Chief Pacific Command (CINCPAC) Admiral Thomas Fargo visited Chengdu on December 14-15. The purpose of the visit was for Admiral Fargo to meet with military leaders in the Chengdu Military Region, one of the most important military regions in China. During the visit to Chengdu, the Admiral and his party also toured the Chengdu National Hi-Tech Development Western Zone and Dikang Industry Holding Group Co., Ltd., a prominent local pharmaceutical company. Chengdu Consul General David Bleyle hosted a reception for the Admiral and the visiting delegation to enable the visitors to meet with American and local business community representatives. The visit was truncated due to poor weather conditions in Chengdu which delayed the incoming flight.
Popeye’s Opens in Chengdu – Recently, Southwest China has seen a growing number of US franchises locate here. Popeye’s joined the group when they held their VIP opening the evening of January 23 followed by a public opening ceremony on January 25. CG Bleyle provided the keynote speech and PCO Peterson made some welcoming remarks. CR Cao worked with the company on the opening ceremonies and provided translation for CG Bleyle's speech. Popeye’s is planning to set up over 50 stores in Sichuan in the future. Post has been working with the company to assist with the importation of equipment and other items necessary for setting up a franchise in China. Discussions were held with Mr. Nimer Al-Bawab, International Director of Operations, during his visit to Chengdu.
For more information on CS Chengdu and the 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.
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INTERNATIONAL COPYRIGHT, U.S. COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2002. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.
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