U.S. Commercial Service - American Embassy, Beijing
Vol. 2 No. 160
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Editor: Matthew Gettman
Contributors: CS Chengdu, Wang Ling, Mei Baochun, Sun Shuyu, Wang Yi, Cao Yue
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. International Paper Will Take Part In New Hope Group’s Promotion of Pasteurized Milk
2. A View of China’s PVC Industry
3. China able to build 1000-MW-class nuclear power plant
4. Further Purifying China’s Plasma Market
5. Regulations Issued Governing Hazardous Waste Operation License
6. China’s Demand for Paper Packaging Materials Keeps Soaring
1. International Paper Will Take Part In New Hope Group’s Promotion of Pasteurized Milk
Ranking 153rd among the World’s Fortune 500, the American paper giant, International Paper, will sign a strategic alliance agreement with New Hope Group to jointly promote pasteurized milk. With its growing worldwide popularity, pasteurized milk is processed with an innovative method that destroys harmful microorganisms while keeping most of the nutrients from fresh milk. According to representatives of New Hope Group, the details of the cooperation will be made public at the signing ceremony on June 12, 2004.
(Source: Chengdu Daily, 06/09/2004, -Translated by FCS Chengdu, Rose Nickel)
2. A View of China’s PVC Industry
With the booming and great upsurge in investment within the PVC industry, lack of raw materials in this industry becomes a very evident and critical issue. It is estimated that China’s consumption of PVC in 2004 will surpass the U.S. to become the world’s largest consumer.
In order to meet domestic demands, China has to rely on PVC imports. The domestic supply as a percentage of total domestic demand, decreased from 73.5% in 1995 to 64% in 2003. Major importers were: Japan, Taiwan, Russia, Korea, and U.S.
The rapid development of building materials in China provides a great market potential for the development of the PVC industry. Within China’s construction industry, structural and decoration materials industries account for half of the total domestic Chinese PVC demand. According to the industry insiders, by the year of 2010, the demand for PVC construction materials will reach 2.1 ~ 2.2 million tons, quadruple the demand in 2000. Estimates show China’s overall PVC demand will reach 7.8 million tons in 2005 and 10 million tons in 2010.
(Source: China Chemicals News, 05/24 2004- Translated by Wang Ling)
3. China able to build 1000-MW-class nuclear power plant
China, on its own, is ready to build a 1000 MW capacity power generating plant with the help of the latest foreign designing software. The second phase of the Qinshan nuclear power plant consists of two generating units each with an installed capacity of 650 MW. Recently, the No. 2 generating unit of the second-phase project of the Qinshan nuclear power plant, located in Haiyan County of Zhejiang Province, (eastern) China, started commercial operation, signaling China’s completion of its first self-developed nuclear power plant.
China has mastered the basic design technique for 600 MW Pressed Water Reactor nuclear power plants, but has to integrate it with current industry associated software. The main facilities of the Qinshan plant's second phase are similar to those used to make a 1000 MW nuclear power plant except with regards to the core-generating unit.
Ye Qizhen, chief designer of the second-phase project of the Qinshan nuclear power plant and academician of the Chinese Academy of Engineering, said that Chinese engineers can easily develop the 1000-MW-class nuclear generating unit based on the designs of the 600 MW unit after introducing foreign-developed, necessary advanced designing software.
There are four nuclear power plants in China. In addition to this new Qinshan power plant, the Daya Bay nuclear power plant and Ling'ao nuclear power plant are operating in Guangdong Province (southern China), and Tianwan’s nuclear power plant is being built in Lianyungang City of Jiangsu Province (northeastern China).
(Source: Electricity,2004 Vol.15- Translated Michael Mei)
4. Further Purifying China’s Plasma Market
Recently, China’s State Council has hosted a special rectifying work conference on combating the illegal collection of blood and single collected plasma and a national videoconference was also held on the same topic. To carry out the instructions of these two conferences, the SFDA will soon issue the detailed opinions of "Special Rectifying Work Plan on Illegal Blood Collection and Single Collected Plasma". SFDA is reexamining the plasma source of blood product manufacturers and their GMP qualifications. SFDA is determined to combat and punish manufacturers that illegally collect and purchase raw plasma. The SFDA is to severely combat illegal manufacturing and recycling of used disposable germ-free medical devices.
Currently, China has 36 blood products manufacturers located in China’s 24 provinces and cities with annual blood production of 3800 tons of plasma and 120 tons of artificial albumin. SFDA exerts GMP monitoring and examination on the blood products manufacturers every year and makes proper adjustment on the focus of the following examination accordingly. The follow-up checking is done according to the qualification of manufacturers after they pass the GMP. Measures are adopted and rectification within limited time frame is required. This has greatly helped improve the quality of China’s blood products.
(Source: China Pharmaceutical Newspaper, 6/10/2004- Translated by Sun Shuyu)
5. Regulations Issued Governing Hazardous Waste Operation Licenses
Chinese Premier Wen Jiabao signed the No. 408 State Council Decree to issue the Regulations Governing Hazardous Waste Operation License on May 30, 2004.
Effective on July 1, 2004, the new regulations outline the conditions and procedures on applying for the hazardous waste operation license, management and supervision license, and other related legal liabilities.
Based on different modes of operation, there are two types of hazardous waste operation licenses to be issued: 1) Comprehensive operation licenses for collection, storage, and disposal of hazardous waste; 2) Operation licenses for collection only of hazardous waste.
Government agencies that are in charge of environment protection work, at and above county level, are responsible for the approval and issuance of the hazardous waste operation licenses.
Original hazardous waste operation license holders will have to reapply for the license in line with the new regulations 30 days before their original licenses expires.
(Source: Environmental News, 06/08/2004- Translated by Wang Yi)
6. China’s Demand for Paper Packaging Materials Keeps Soaring
With the rapid development of China’s economy, the market demand last year for paper packaging materials in China reached a historical record high.
In 2003, following the United States, China became the second largest worldwide paper product consumer. In the past several years, along with the increase in both exports and domestic consumer goods, the demand for printing and packaging materials paper keeps soaring, especially on high-grade paper made directly from pulp. In addition, the import price of waste paper keeps rising and reached USD145 (RMB 1198) per ton this January, registering a 4.2% growth over the price in January 2003.
China’s packaging paper industry relies heavily on the cost of waste paper, that accounts for 44% of the paper production material costs. Recent raw material high prices have limited the return on investment and profitability for domestic paper companies.
(Source: China Packaging News, 06/10/2004 - Translated by Yue Cao)
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..
Kansas University Student Delegation Visits Chengdu
Led by Professor Sheree Willis, a delegation of ten undergraduate students and one graduate assistant from Kansas University visited Chengdu on June 8. Majoring in economics and politics, the student delegation was interested in the Chengdu consumer goods and retail market. At the request of the delegation leader, CS Chengdu performed a Business Facilitation Service for the delegation by arranging and coordinating meetings with Price Smart (franchisee of Cosco) and Amway. At the meeting with Price Smart, Ms. Helen Wang, Assistant to General Manager, briefed the delegation on the Price Smart membership and company structures. The delegation next visited Amway Chengdu head office and received a warm welcome by Amway staff. Mr. Herbert Ho, Legal Counsel of Amway, Chairman of the Retail Forum of the American Chamber of Commerce, made a special trip from Beijing to give a presentation on the Amway China story. The students found the presentation and discussion highly informative and were very satisfied with their Chengdu visit. CR Rose Nickel coordinated the BFS program and accompanied the delegation to both meetings.
Intel to Work with Sheng Da Network to Develop Family-Related Digital Products
The local Chinese networking company Sheng Da Network has just completed its ongoing market task and moves towards the goal of becoming a digital games giant. On June 8, 2004, Sheng Da signed a memo of understanding with Intel to jointly promote the R&D of digital family-related software as well as solutions for the next generation of the fast growing networking industries in China. Intel and Sheng Da will work together on research and development of more advanced solutions for all kinds of online interactive entertainment equipment including computers, cable modems and cellular phones equipped with Intel chips. In addition, the two companies will jointly establish a test and innovation center for digital family-related products and games to focus on the development of online solutions. Both Intel and Sheng Da are enthusiastic about the cooperation. At the signing ceremony, Mr. Chen Tianqiao, President/CEO of Sheng Da Network, stated that Sheng Da is aimed at becoming an internationally influential interactive entertainment supplier. In the industry of digital family-related products, the cooperation between Intel and Sheng Da will provide advanced programs and solutions to the Chinese and global end-users and bring more entertainment to families throughout the world.
(Source: Chengdu Daily, 06/09/2004, -Translated by FCS Chengdu, Rose Nickel)
For more information on CS Guangzhou and the Guangzhou consular region, visit our website at http://www.buyusa.gov/china/en/Guangzhou.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, 2004. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.