U.S. Commercial Service - American Embassy, Beijing
Vol. 2 No. 145
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: Matthew Gettman
Contributors: CS Shenyang,Merry Cao, Qiu Jing, Bai Ying, Sherry Cai, Sun Shuyu
News Briefs
In addition to the article summaries CS Beijing provides , 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. The Shenyang Subway Project Back on Track
2. China Reaches 500 Million Phone Subscribers
3. Chinese Increase Overseas Travel
4. China Auto Market Growth from January to August, 2003
5. BOCOG Seeks Designs of Commemorative Coins from Around the World for 2008 Olympic Games
6. Health Food Registration Applications and Approvals Resumed
1.The Shenyang Subway Project Back on Track
The Shenyang subway project is back on track, after planning was suspended earlier in the year due to lack of financing. The city plans to begin construction of the 22 km. subway line in 2004, which will run east to west. Line two will run north to south along a 69.9 km. stretch and line three will encircle the other two lines. The entire subway system will be completed by 2010.
The city of Shenyang has submitted documents to the State Council seeking approval to build a USD 1.15 billion (RMB 9.48 billion) subway system. The city is optimistic about its prospects for approval because its current economic conditions meet the minimum criteria set by the Chinese government. The government imposes the following criteria: total population must exceed 1 million, total revenue must reach RMB 10 million ( USD 1.2 billion), and GDP must be RMB 100 billion (USD 16.93 billion). Last year Shenyang's population was 6.8 million, total revenue was RMB 10.5 billion (USD 1.26 billion), and GDP reached RMB 140 billion (USD 16.9 billion).
According to Shenyang government officials, the city will invest 43 percent of the project construction costs (RMB 4 billion) over the course of four years. Daemyung Construction Inc., a company based in South Korea will invest in the Shenyang subway construction.
(Source: FCS Shenyang)
2. China Reaches 500 Million Phone Subscribers
The Ministry of Information Industry recently released a statement that at the end of September 2003, China phone subscribers exceeded 500 million, reaching 500,442,000 total subscribers. Fixed line subscribers reached 250,468,000 while mobile phone subscribers reached 249,974,000.
In recent years, China’s telecommunication sector has experienced rapid growth. In 1978, total phone subscribers totaled only 1.9 million. By 1998, that total reached 100 million.
By the end of 2002, China had 6 basic telecom enterprises and 4,400 value-added telecommunication enterprises. China has established a modern telecommunication network with the ability to cover the nation, connecting with international companies as well as with advanced technological business partners.
(Sources: China Information World, 10/27/2003 - Translated by Merry Cao)
3. Chinese Increase Overseas Travel
China will have approved 28 countries and regions by the end of October 2003 as Approved Destination Status (ADS) countries and regions for Chinese to travel. Those countries and regions include Singapore, Malaysia, Thailand, Philippine, Australia, New Zealand, South Korea, Japan, Viet Nam, Cambodia, Myanmar, Nepal, India, Brunei, Egypt, Turkey, Malta, German, Sri Lanka, Maldives, India, South Africa, Croatia, Hungary, Pakistan, Cuba, Hong Kong and Macao.
In recent years, China has seen a steady increase of Chinese overseas travel. 16.6 million person/time travels overseas in 2002, a 36.84% increase over 2001. From January to August this year, the figure reached 11.8 million person/time, a 14.96% increase than the same period of time last year. China’s traveling citizens have recently become a source of revenue to other countries in Asia, according to China’s National Tourism Administration.
(Source: Xinhua Net, 10/19/2003 - Translated by Qiu Jing)
4. China Auto Market Growth from January to August, 2003
According to the statistics revealed by China Association of Automobile Manufactures, China's output of motor vehicles totaled 2,781,800 units during the first eight months of 2003, an increase of 36 % as compared to last year.
The passenger cars accounted for the biggest growth increase at 92 %, totaling 1,223,400 units by the end of August, 2003, out of which 1,157,500 are domestically made. The total output of motor vehicles including passenger car will exceed five million units by the end of this year.
Major automakers in China have seen increased profits in the first eight months of this year. China's top 14 State-owned automakers profits were reported at USD 2.81 billion, an increase of 77 % over last year. However, inventory is also increasing because of the fast growth of output over sales and fierce market competition. Inventory increased to USD 2.83 billion by the end of August, 2003, up 43 % over last year.
The top five auto sellers by the end of August, 2003, include: The First Automotive Works Corp., Shanghai Automotive Industry Corp., Dongfeng Motor Co., Chang'an Automotive Corp., and Beijing Automotive Industry Co..
(Source: China Automotive News, 10/13/2003 - Translated by Bai Ying)
5. BOCOG Seeks Designs of Commemorative Coins from Around World for 2008 Olympic Games
With BOCOG’s approval, the People’s Bank of China started soliciting the initial design of commemorative coins from all around the world.
This campaign started on October 28, 2003 and will end on February 16, 2004. The People’s Bank of China plans to issue 9 general commemorative coins (1 commemorative bank note face value of 20 RMB, 8 general commemorative coins face value of 5 RMB); 31 precious metal commemorative coins (1 gold coin weighed 10kg and face value of 100,000 RMB; 2 gold coins respectively weighed 5oz. and face value of 2,000 RMB; 8 gold coins respectively weighed 1/3oz. and face value of 150 RMB; 2 platinum coins respectively weighed 1/10oz. and face value of 100 RMB; 2 silver coins respectively weighed 1kg and face value of 300 RMB; 16 silver coins respectively weighed 1oz. and face value of 10 RMB).
For detailed information, please visit China Gold Coin Inc.(CGCI): http://www.chinagoldcoin.net/english/index.htm
(Source: Beijing Star Daily, 10/29/2003 – Translated by Sherry Cai)
6. Health Food Registration Applications and Approvals Resumed
The State Food and Drug Administration (SFDA) started accepting applications and approvals of health food registrations on October 10, 2003. The State Traditional Chinese Medicine Protection Evaluation Committee has started accepting application materials. The responsibility of approving health food applications has been transferred from the SFDA to the Ministry of Health (MOH).
According to the SFDA’s requirements, previously submitted applications that have not been approved but officially accepted by MOH will be evaluated by SFDA based on the regulations and technical requirements previously issued by MOH. SFDA will issue a certificate and approval numbers to those products that meet the requirements.
New applications for registration and applications for modifying the certificate should be submitted temporarily to the SFDA. SFDA will follow the previously issued regulations and technical requirements by MOH in giving approval to applications for registration before a revised version of approval management and technical requirements is issued.
(Source: China Medical Newspaper, 10/9/2003 - Translated by Sun Shu Yu)
Embassy News
From October 25 through October 29, Commerce Secretary Evans completed a very fruitful series of bilateral meetings, programs and events during his visit to Xian and Beijing, China.
Consulate News: Shenyang
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 Shenyang.
United States Trade Representative Ambassador Robert Zoellick visited Shenyang October 19-21, during which time he met with Liaonoing Governor Bo Xilai, Liaoning Academy of Social Sciences academicians, and Liaoning University students. He also toured the Cargill Feed Plant in Fushun city, the WalMart store and Kodak Express in Shenyang. Since Chinese officials have encouraged USTR to visit cities other than Beijing to become familiar with economic conditions throughout the country, Ambassador Zoellick traveled to Northeast China to learn more about the "Rejuvenate the Northeast" initiative, state-owned enterprise reform, unemployment and social security.
For more information on CS Shenyang consular region, visit our website at http://www.buyusa.gov/china/en/Shenyang.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, 2003. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.