Sci-tech Info

Chinese Open-minded Towards New Gadgets The China Research Institute for Science Popularization says in its 2006 report that more than 80 percent of respondents to a survey were "open-minded towards new science and technologies." However, 48.6 percent of respondents said they would wait and see when a new product hits the market, and wouldn't consider buying it unless it got a good review. In comparison, 37.8 percent said they would try it out without a review, and 36.2 percent of respondents said they would seek information to make sure it harms neither health nor the environment before making a purchase.     

Cashing in on China's Boom

Foreign banks continue to fare well here on the back of the country's torrid economic growth sitting on piles of bad mortgages and unpaid credit-card debts and auto loans, several foreign banks have seen their profits plummet along with the broader economic downturn in the West But the good news is that they still see China as a bright spot for expanding their business. In the first three quarters this year, foreign banks in China earned 10.12 billion yuan ($1.48 billion) in profit, double the amount they made during the same period last year, said the China Banking Regulatory Commission in a statement on September 25.     

Exchange Rate in Focus

China announced the reform of its decade-old RMB exchange rate regime last July, linking the RMB to a basket of currencies rather than the U.S. dollar alone, and allowing the RMB to appreciate 2 percent against the U.S. currency. Since then, different viewpoints on the new regime have been voiced. The People's Bank of China, the central bank, said in a statement in late March that it would further improve the system, broadening the foreign exchange market, increasing the flexibility of the RMB exchange rate and maintaining the basic stability of the currency. In a recent interview with Caijing magazine, Wu Xiaoling, Deputy Governor of the People's Bank of China, talks about issues related to the RMB exchange rate. Her main ideas follow:     

Lending a Helping Hand to SMEs

Small and medium-sized enterprises (SMEs) play an integral role in China’s economy.About 99 percent of Chinese enterprises are SMEs which provide nearly 80 percent of job opportunities in urban areas and contribute 60 percent of the country’s GDP.Access of funds has long been a problem for Chinese SMEs as they are often considered too risky and banks prefer to lend to big companies,particularly reputable stateowned enterprises.But banks can do more to support SMEs,said Som Subroto,global head of SME Banking at Standard Chartered Bank in an article for Beijing Review.Edited excerpts follow.     

MARKET WATCH

The Chinese Government adopted a package of mea-sures to rescue the tumbling mainland stock markets. It will let listed companies repurchase their shares in the open markets and require the government's investment arm to increase its holdings in major listed domestic banks. But most notably,the government ditched the stock trading stamp tax charged to those who buy shares. Mainland steel prices are expected to drop in the fourth quarter when industry leader Baosteel cuts its prices in October and November. Chinese companies such as Sinosteel and China Oilfield Services are increasing their acqui-sitions of,and stakes,in foreign companies.     

Chinese Finance Holds Fast amid International Competition

THE cry of wolf was loud in China in the first years after its accession to the WTO. Skeptics were dubious about the competitiveness of domestic financial institutions, suggesting that they would lose business to foreign banks and insurers en mass. Another worry felt widely was about whether China's supervisory bodies would be able     

That Extra Kick

China is in the throes of restructuring its economy,and helping small and micro-sized enterprises stay afloat will be key At a time when economic growth is sluggish,the Chinese Government has strengthened support for small and micro-sized enterprises.The State Council announced that value-added and turnover taxes for small businesses with monthly sales of less than 20,000 yuan($3,262) would be suspended as of August 1. The National Development and Reform Commission(NDRC) issued a statement on its website on July 26 saying that financing services for small and micro-sized enterprises would be strengthened.On the same day,the People’s Bank of China(PBC),the country’s central bank, announced that it would push the country’s banks to increase credit to small and microsized enterprises.Traditionally,these enterprises     

More Localized Foreign Banks

The country's banking watchdog says that to engage in the retail renminbi business, foreign banks must become Chinese legal entities According to China's commitment at its accession to the WTO, as of December 11 this year, it will fully open renminbi business to foreign-funded banks. However, this does not mean that the 103 China branches of foreign     

MARKET WATCH

After four days of breathtaking plunges, the Chinese stock market recovered to a period of steady growth thanks to encouragement from various government departments. The Chinese central bank will probably raise the interest rate in June after food prices increased dramatically in May. More good news for foreign banks. Early this month, the central bank allowed foreign banks to trade gold on the Chinese gold market and they are now able to issue bankcards in the country. Lenovo Group, China's leading PC producer, is dedicated to exploring the rural market to boost its competitiveness. China Mobile will seek bidders to offer cell-phone handsets, a package worth 4-6 billion yuan.     

MARKET WATCH

Chinese stocks plummeted nearly 7 perrcent on May 30, leading to a los of over 1 trillion yuan. The sharp drop was caused by an increase in stamp tax on stock trading, tripling the previous rate. It was considered a market correction and was right in time to kill recent stock mania around the country. The Chinese stock market rebounded the following day, showing off investors' strong expectations. The Shanghai Stock Exchange stated China is preparing for overseas-listed Chinese companies and international blue chips to be listed on the mainland. The Chinese oil giant Sinopec survived the drop, as it had discovered a new oil field and was expected to generate more profits for its shareholders. Apart from exploring more oil and other traditional energy sources, China is also devoted to developing nuclear power. Government officials disclosed that domestic private companies and foreign companies will be allowed to invest in Chinese nuclear power plants, but didn't give an exact timetable. Private companies have performed well in China and their fixed asset investment accounts for 56 percent of the nation's total.     

The Full Picture

Back in 1992, when China announced that it would build a socialist market economy, a question was posed to a Chinese del-egate: What is a socialist market economy? I clearly remember this delegate replying that the socialist market economy is a mar-ket economy under the leadership of the Communist Party of China (CPC). Twenty-six years have passed since then and we have never changed our position. As for those who speculated that China would change and move onto a different path upon its accession to the WTO, that was just their wishful thinking. There is more than one market economy model in this world.     

Banking Around the World

<正>Chinese banks expands its "going out" strategy but faces challenges in establishing a presence in foreign markets The world’s biggest lender by market value, the Industrial and Commercial Bank of China (ICBC), and the Hong Kong-based Bank of East Asia signed an agreement in which ICBC would pay $140.23 million to buy an 80-percent inter- est in Bank of East Asia USA, the Hong Kong bank said on January 23.     

China Takes Wing

COVER STORY If all goes according to plan, Chinese air travellers will be boarding big commercial airliners designed and manufactured in China by the year 2020. The aviation market, long dominated by Boeing and Airbus, will face a home grown challenge in a lucrative arena that is forecast to see China purchase 2230 new aircraft in the period leading up to 2025. It is hoped that many of those aircraft would be stamped “Made in China.” With government lending its weight to the development process, the civil aviation industry is aware it will take time to get into full flight and has fastened its seatbelts. Known for its high risk, hi-tech input and snail pace returns, the industry is taking it one step at a time all the way to the runway.     

ECONOMY

<正>Tax Rebates Overseas visitors will soon be able to claim tax refunds on purchases made in Beijing in a move to boost tourism and consumption in the city.Concerned departments of the Beijing Municipal Government are discussing details of the tax refund scheme and it is expected to be implemented later this year,Vice Mayor Cheng Hong announced on April 27.According to the plan,foreign tourists and those from China’s Hong Kong,Macao and Taiwan who have stayed on the Chinese mainland for no more than six months may receive a rebate of 11percent on consumer goods purchased at designated retail outlets.The minimum purchase for a tax refund is 500 yuan($82)at any one store in one day.The Ministry of Finance announced in January that China would expand the tax refund program to spur inbound     

XCMG： Globalizing China＇s Manufacturing Industry

正SUCCESS in the manufacturing industry demands as much hard work as farmers need to grow rice–they sow the seeds one by one and reap the harvest one by one.Despite its cautionary tone,this well-known metaphor in industry circles has never shaken the resolve of the managers of Xuzhou Construction Machinery Group(XCMG),a respected pioneer of China’s manufacturing industry.Wang Min,chairman of XCMG,said that China’s equipment manufacturing industry would not be as successful as it is today without the people at its helm who stick to     

Corporate Social Responsibility——A Rite of Passage for Chinese Enterprises

CHINESE people often derisively refer to the rapidly prepared offerings of McDonald's and KFC as "junk food." Yet it was these two fast food giants that made the common people of China aware of the corporate social responsibilities (CSR) undertaken by transnational companies. When McDonald's and KFC entered China in the 1990s, public toilets were scarce and the facilities in hotels and restaurants were not for public use. But McDonald's and KFC allowed anyone at all. whether or not they were customers, to use their washrooms. The McDonald's and KFC logos consequently have particular significance to members of the Chinese general public, whether or not they eat there. A similar public spiritedness is now being displayed by a number of Chinese enterprises that have begun to make their washroom facilities open to the public. On rainy days, signs can also be seen in certain stores assuring shoppers that they are: "Welcome to take shelter from rain." It would appear, therefore, that corporate social responsibility, a concept introduced by transnational companies, is being taken on by Chinese enterprises.     

The Chinese Reconsider Their Dialogue with the World

AN American music pro- ducer friend of mine who is familiar with China said that any Westerner would be amazed on their rst visit to China as to why their previous impression of it wassomistaken.Hewonderedwhether it was perhaps the Chinese mode of communication that puts it in a kind of cultural isolation,” said Yu Qiuyu in a speech at the Beijing Cross Culture Communication Forum. The 2006 Beijing Cross Culture CommunicationForumwassponsored by the Center for International Com-munica…     

Chinese President Hu Jintao and Austrian President Heinz Fischer Send Messages of Congratulations on 2006 China Year in Austria

Editor's note: In January 2004, Benita Ferrero-Waldner, Austrian foreign minister at the time, announced that China Year would be held in Austria in 2006 to mark the 35th anniversary of the establishment of diplomatic relations between Austria and China and to promote understanding of China and bilateral cooperation. The two sides decided after consultation that the activities for the China Year would be jointly organized by the Austria-China Friendship Association and the Chinese People's Association for Friendship with Foreign Countries. The governments of the two countries attach great importance to the holding of the China Year. Chinese President Hu Jintao, Austrian President Heinz Fischer and Federal Chancellor Wolfgang Schussel and other state leaders     

Cross-Cultural Familiarity - The People and Their Stories Xi Mentioned on Foreign Visits——Unforgettable Ruling

＂Amity between people holds the key to sound relations between states.＂ Chinese President Xi Jinping has reiterated this in his speeches at various foreign affairs activities. To elaborate, he often provides anecdotes of real people and their stories that demonstrate China＇s respect for other cultures and its sincere desire for peaceful coexistence. In this issue China Today interviewed some of the people and their families that Xi has mentioned. Their experiences highlight the growing friendly exchanges between Chinese people and people of other countries, and a developing and changing China.