US-China Trade Update 1-23-2012: China's Growth

Positive economic news this week from China.  In a year-to-year comparison, China’s retail sales were up by 18.1 percent in December 2011, growing from a 17.3 percent in just November. China’s GDP (gross domestic product) has grown 9.2 percent in the last year, moderating from a 10.3 percent in 2010. Meanwhile, farm produce also rose for an eighth consecutive week. All this and more in this week’s US-China Update.

Contents
Global Relations

Economy

Currency

Trade

Global Relations

India, China bid to ease border row for broader ties
CNN China, January 17, 2012
“New Delhi (CNN) -- Locked in a long-running border dispute, India and China Tuesday agreed to set up a new system aimed at maintaining peace along their treacherous Himalayan boundary.” Read more

National Commercial Conference on Anti-monopoly 2012 Held in Beijing
Chinese Minister of Commerce, January 17, 2012

“National Commercial Conference on Anti-monopoly was held in Beijing on January 12. Gao Hucheng, China International Trade Representative and Vice Commerce Minister attended and addressed the Conference.” Read more

China Slashes US Decision to Impose Sanction on Chinese Company
CRI English, 
January 15, 2012
“China on Saturday voiced its "strong dissatisfaction and firm opposition" to the United States' decision to impose sanction on a Chinese company.” Read more

More supporting policies for SMEs urged
Shanghai Daily, 
January 14, 2012
“LAWMAKERS have urged the Shanghai government to unveil more favorable policies for the city's 337,000 small and medium-sized enterprises, which are facing rising material and social security costs amid weakening global demand, Shanghai Daily learned yesterday.” Read more

Foreign exchange reserves take a rare fall
Shanghai Daily, 
January 14, 2012
“CHINA'S foreign exchange reserves saw their first quarterly drop in 13 years, due mainly to a withdrawal of foreign capital amid global economic uncertainties, and economists welcomed the fall and took it as a signal for monetary-easing measures.” Read more

Chinese Firms See Overseas M&A Hit Record High in 2011
CRI English, 
January 13, 2012
“Chinese firms conducted 207 mergers and acquisitions (M&A) overseas in 2011, a record high and up 10 percent from 2010, international accounting firm PricewaterhouseCoopers (PwC) said in a recent report.” Read more

The war is with China, the battleground Africa
Asia Times,
January  13, 2012
“When United States President Barack Obama and Secretary of Defense Leon Panetta appeared together at the press conference at the Pentagon recently to reiterate America’s commitment to the Asia-Pacific region, the subject of Africa did not come up. Sometimes what is avoided can be a clue to what is most important on the agenda.” Read more

Planner approves bonds issue
Shanghai Daily, 
January 12, 2012
“CHINA'S top planner, the National Development and Reform Commission, has allowed 10 financial institutions to issue yuan bonds in Hong Kong to raise a combined 25 billion yuan (US$3.95 billion).” Read more

Accounts record surpluses
Shanghai Daily, 
January  12, 2012
“CHINA posted surpluses in its current account and capital account in the third quarter of last year, the State Administration of Foreign Exchange said yesterday.” Read more
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Economy

GDP growth slowest since 2009
Shanghai Daily, January  18, 2012
“CHINA'S economy grew 9.2 percent in 2011 from a year earlier, with its gross domestic product at 47.1 trillion yuan (US$7.5 trillion), the National Bureau of Statistics said yesterday.” Read more 

China set to develop 10 major metals|
Shanghai Daily, 
January 18, 2012
“CHINA has forecast that annual output of 10 major metals will rise to 46 million tons by 2015 from 31.21 million tons in 2010, and apparent consumption will reach 49 million tons from 34.3 million tons, a news website about China's non-ferrous metals reported.” Read more

HK's policies aim to loosen offshore yuan
Shanghai Daily, 
January18, 2012
“HONG Kong announced further measures yesterday to liberalize its fledgling offshore yuan market, allowing banks to take on more risks and increase their involvement in the market.” Read more

Fed's wordplay to cast little impact
Shanghai Daily, 
January 18, 2012
“A forecast is a forecast. In many cases, it's not worth the paper it's printed on.” Read more

Home deals post slowest rise in 3 years on policies
Shanghai Daily, 
January 18, 2012
“CHINA'S home sales rose at the slowest pace in three years in 2011 as tightening measures to curb housing speculation started to take effect, government data showed yesterday.” Read more

China's Economic Growth Decelerates to 9.2 Pct in 2011
CRI English, 
January 17, 2012
“China's economy grew 9.2 percent in 2011 from a year earlier, and 8.9 percent year on year in the fourth quarter of last year. The quarterly growth was the slowest in 10 quarters.” Read more

China's Economic Growth Decelerates to 9.2 Pct in 2011
CRI English, 
January 17, 2012
“China's economy grew 9.2 percent in 2011 from a year earlier, and 8.9 percent year on year in the fourth quarter of last year. The quarterly growth was the slowest in 10 quarters.” Read more

China's economic growth slows
CNN China, 
January  17, 2012
“NEW YORK (CNNMoney) -- China's economic growth slowed at the end of last year, as exports slumped and government restraints took some steam out of the booming real estate market.” Read more

China's urban population outnumbers rural dwellers for first time
CNN China, 
January  17, 2012
“Beijing (CNN) -- For the first time, urban dwellers in China now outnumber those living in the country.” Read more

Farm Produce Prices Rise for 8th Straight Week
CRI English, 
January  17, 2012
“Farm produce prices rose for an eighth consecutive week last week, while the prices of producer goods remained unchanged, the Ministry of Commerce said Tuesday.” Read more

China GDP gains 9.2% in 2011
Shanghai Daily, 
January 17, 2012
“China's gross domestic product grew 9.2 percent last year, moderating from the rate of 10.3 percent in 2010, the National Bureau of Statistics said on its website today.” Read more

China's retail sales up 18.1% in Dec
Shanghai Daily, 
January  17, 2012
“CHINA'S retail sales rose 18.1 percent year on year in December 2011, accelerating from the 17.3 percent growth in November, the National Bureau of Statistics (NBS) said today.” Read more

New home sales fall anew in city
Shanghai Daily, 
January 17, 2012
“SHANGHAI'S market for new homes recorded very low sentiment among both buyers and sellers for the second week.” Read more

China's Average Home Price to Drop 5.3 Pct in 2012
CRI English, 
January 17, 2012
“The average housing price in China will drop by 5.3 percent year-on-year to 5,024.4 yuan (794.4 U.S. dollars) per square meter in 2012, the Center for Forecasting Science of the Chinese Academy of Science said in a report on Tuesday.” Read more

China Uncovers Over 5 Bln USD from "Covert Coffers" in Past 3 Years
CRI English, 
 January 17, 2012
“Chinese authorities have uncovered 31.59 billion yuan (5.01 billion U.S. dollars) from 60,722 "covert coffers" illegally held by government departments and public institutions since the country started a nationwide crackdown in 2009, a senior official said Tuesday.” Read more

East Asian Economy Faces Headwinds, UN Says
CRI English, 
January 17, 2012
“With weaker export markets, East Asia's growth is projected to decline to 6.9 percent in both 2012 and 2013, down from the 7.2 percent registered last year, according to an annual United Nations report launched in Beijing on Tuesday.” Read more

Vice Minister Zhong on Inspection Tour to HK for Secured Supply of Agricultural and Side-line Products to Hong Kong
Chinese Minister of Commerce, January 17, 2012
“As required by Central Government, Mr. Zhong Shan, Vice Minister of Commerce and Deputy China International Trade Representative, headed a delegation to Hong Kong.” Read more

Policies reduce Beijing's home prices
Shanghai Daily, 
January 16, 2012
“PRICES of new residential apartments in Beijing may have dropped by 11.3 percent annually in 2011, as the government's policies to cool the sizzling property market took hold.” Read more

Beijing Home Prices Drop 11 pct in 2011
CRI English, 
January 15, 2012
“Prices for new residential apartments in Beijing are estimated to have dropped by 11.3 percent year on year in 2011, as the government's policies to cool the sizzling property market took hold.” Read more

Chinese Enterprises Aim for "Created in China"
CRI English, 
January 14, 2012
“In the official and academic discourse in China, the move from "made in China" to "created in China" is generally seen as part of the country's economic transformation and industrial upgrading.” Read more

Policies hit mortgages in Shanghai
Shanghai Daily, 
January  14, 2012
“INDIVIDUAL home loans in Shanghai fell sharply last year as the government tightened policies on the real estate market and buyers became more cautious, the Shanghai headquarters of the People's Bank of China said yesterday.” Read more

Chinese slowdown in the cards
Asia Times, 
January 13, 2012
“MONTREAL - The Chinese economy if facing a hard first quarter amid slowing trade growth as troubled developed countries hold back on export orders and local demand stalls. Read more

Taiwan vote may trip up US and China
Asia Times, 
January 13, 2012
“TAIPEI - In their presidential and legislative elections to be held simultaneously on January 14, the Taiwanese will either re-elect Ma Ying-jeou of the Beijing-friendly Kuomintang (KMT) or opt for a somewhat weighty change.” Read more

China Built More Ships Last Year, but New Orders Sank
CRI English, 
January 13, 2012
“Chinese shipbuilders in 2011 finished building more ships year-on-year, but the global economic slowdown halved their orders, according to data released by the Ministry of Industry and Information Technology (MIIT) on Friday.” Read more

Antitrust Filings Rise 49 Pct in 2011 in China: MOC
CRI English, 
January 13, 2012
“China's Ministry of Commerce received 203 antitrust filings in 2011, up 49 percent year-on-year, and launched investigations into 185 cases, a rise of 57 percent, a senior official said Friday.” Read more

City to help small firms and boost innovation
Shanghai Daily, 
January 13, 2012
“SHANGHAI will improve policies on human resources as well as small firms and further encourage innovation in helping the city to restructure its economy, Mayor Han Zheng said yesterday.” Read more

Index dips after CPI figure out
Shanghai Daily, 
January 13, 2012
“SHANGHAI'S stock market closed slightly lower yesterday following the release of China's inflation data for December.” Read more

Confident bankcard holders lift spending
Shanghai Daily, 
January 13, 2012
“AN index that measures confidence of Chinese bankcard holders rose in December for the seventh month, fueled by an increase in spending before the year end, China UnionPay Co said in a report yesterday.” Read more

Wooing home offshore renminbi
Shanghai Daily,
January 13, 2012
“THE plan is this: Starting with Hong Kong, yuan-denominated deposits held offshore are channeled into mainland equities, thereby further opening up China's long-isolated capital market and – with any luck – stanching the ugly losses suffered by its key equity gauges.” Read more

China's inflation eases to 15-month low in December
Shanghai Daily, 
January  13, 2012
“China's inflation continued to weaken in December, giving more room for policy moves to support a slowing economy.” Read more

Prices rise at 117 out of 320 housing projects
Shanghai Daily, 
January 13, 2012
“DEVELOPERS of more than a third of apartment projects in Shanghai raised their prices in 2011, with those at a luxury project along the Huangpu River increasing the most on an annual basis, according to a latest industry research.” Read more

Protest is food for thought
Shanghai Daily, 
January 13, 2012
“ABOUT 400 people marched in Hong Kong's financial district yesterday to protest against a shorter lunch break, which the bourse operator has said is crucial to boost competitiveness and align it more closely with China's mainland.” Read more

More cases found
Shanghai Daily, 
January 13, 2012
“CHINA'S Ministry of Land and Resources yesterday said a total of 70,000 cases of illegal land use were found last year, up 5.8 percent on an annual basis, highlighting pressure on land supply at a time of rapid economic growth. The cases involved a total of 50,067 hectares, up 11 percent, said Li Jianqin, chief of the law enforcement department under the ministry.” Read more

Commercial Review 2011 (6): Scale and Effectiveness of China’s Overseas Investment Further Enhanced
Chinese Minister of Commerce, January 12, 2012
“2011 is the first year of “the twelfth Five-Year Plan”. China's investment and cooperation overseas developed steadily, and scale and economic benefits further enhanced.” Read more

Fed Sees Ongoing Improvement in US Economic Conditions
CRI English, January 12, 2012
“The U.S. Federal Reserve said on Wednesday that its survey suggested ongoing improvement in economic conditions in recent months.” Read more 

China's inflation rate slows again
CNN China, 
January 12, 2012
“NEW YORK (CNNMoney) -- China's inflation rate cooled for the fifth month in a row in December.” Read more

Over 60% upbeat on China's economy
Shanghai Daily, 
January 12, 2012
“MORE than 60 percent of China's rich people were upbeat about the country's economy in the next two years, but still they were more cautious toward spending, according to a survey released yesterday.” Read more

Outbound Travelers Continue to Surge in 2011
CRI English, 
January  12, 2012
“It is estimated that the number of Chinese tourists traveling overseas surged 20 percent year-on-year to 69 million in 2011.” Read more

Registered capital of private companies climb 39% to US$4t
Shanghai Daily, 
January 12, 2012
“A Chinese association representing private enterprises and individually-owned businesses announced yesterday that the number of registered private companies in China had topped 9 million as of the end of September, up an annual 14.9 percent.” Read more

Reforms will transform the city's economy
Shanghai Daily, 
January 12, 2012
“SHANGHAI is to further finance and technology reform this year as the key effort in achieving economic transformation focusing on high-end services, Mayor Han Zheng said when he delivered the government's annual work report yesterday.” Read more

Wind power projects to build up
Shanghai Daily, 
January 12, 2012
“CHINA will soon start construction on its second installment of wind power projects for the 2011-2015 period, Liu Tienan, minister of the National Energy Bureau, has said.” Read more

Chairman Alan Krueger Discusses the Rise and Consequences of Inequality at the Center for American Progress
US Council of Economic Advisors, 
January 12, 2012
“At 10:00 ET on Thursday, January 12, 2012, President Obama’s Chairman of the Council of Economic Advisers, Alan B. Krueger delivered remarks on “The Rise and Consequences of Inequality” at the Center for American Progress in Washington, DC.” Read more

China Allows BEA to Sell 2nd Yuan Bonds in HK
CRI English, 
January 12, 2012
“China has allowed the Bank of East Asia (BEA) to issue yuan-denominated bonds in Hong Kong for a second time, about three years after it became the first foreign-invested bank to make a yuan bond issuance.” Read more
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 Currency 

Retail sales gain 18% to 11-month high
Shanghai Daily, 
January 18, 2012
“CHINA'S retail sales rose 18.1 percent annually to an 11-month high in December, bolstered by robust demand in the run-up to the new year and the Spring Festival.” Read more

Financial frankness is a bad dream for troubled banks
Shanghai Daily, 
January 18, 2012
“THERE'S a simple explanation for why the world's zombie banks remain so reluctant to write off worthless assets and tap the equity markets for fresh capital. They don't want to end up like UniCredit SpA.” Read more

PBOC Injects Cash into Banks via Reverse Repo
CRI English, 
January 17, 2012
“The People's Bank of China (PBOC), or the central bank, on Tuesday conducted 14-day reverse repurchase agreement (repo) operations worth 169 billion yuan (26.72 billion U.S. dollars), injecting cash into banks to ease a liquidity squeeze ahead of a Chinese holiday.” Read more

Warning sounded on inflation
Shanghai Daily, 
January 17, 2012
“CHINA'S top statistician Ma Jiantang yesterday forecast lasting pressure from price increases, warning that any policy fine-tuning should help stabilize inflation.” Read more

Banks need stress tests, regulator says
Shanghai Daily, 
January 17, 2012
“CHINESE banks must conduct regular stress tests and improve risk detection despite having improved ratios of bad loans and capital adequacy, Shang Fulin, chairman of the China Banking Regulatory Commission, wrote in an article published yesterday.” Read more

Last chance for euro: dollar parity
Shanghai Daily, 
January 17, 2012
“THE euro has dropped about 13 percent against the US dollar since the sovereign-debt crisis hit Italy seven months ago. To a large extent, the decline reflects the increased likelihood of an Italian default, which would destroy the single currency.” Read more

RMB Becomes New International Currency
CRI English, 
January 16, 2012
“Hong Kong's Financial Secretary John C Tsang said Monday that Renminbi (the Chinese yuan) has become a new international currency.” Read more

Banks barred on bill transfer to trusts
Shanghai Daily, 
January 14, 2012
“CHINA'S banking regulator has banned lenders from transferring stakes in commercial bills to trust firms, a person with knowledge of the matter said.” Read more

Confidence index of small businesses climbs
Shanghai Daily, 
January 14, 2012
“AN index tracking the confidence of China's small and medium-sized enterprises rose to 54.57 in the fourth quarter of 2011 as they took advantage of government stimulus policies, Standard Chartered Bank said yesterday.” Read more

China Ready to Further Marketization Reform of Interest Rates
CRI English, 
January 13, 2012
“China's central bank now says it's planning more reforms of interest rates in this country.” Read more

China's Forex Reserves, Yuan Funds Fall
CRI English, 
January 13, 2012
“China's foreign exchange reserves fell to 3.18 trillion U.S. dollars at the end of the fourth quarter last year, a rare case in recent years for the the world's largest holder of foreign exchange reserves.” Read more

Mongolia Establishes Price Control Council to Combat Inflation
CRI English, 
January 12, 2012
“The Mongolian government has established a price control council tasked with containing the country's rising inflation, local media reported Thursday.” Read more

Growing pains of the yuan
Shanghai Daily, 
January 12, 2012
“THE mainland's ambition to turn the yuan into an international currency will increase the nation's economic clout, but the process is fraught with costs, risks and frustrations. We should not despair. It's a lot like the trials and tribulations of raising children.” Read more
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Trade

Local pensions to be invested in stocks
Shanghai Daily, January 18, 2012
“CHINA'S national pension fund has been approved to invest 100 billion yuan (US$15.8 billion) from a southern province in the stock market, media reported yesterday.” Read more 

Index rebounds to 2,298 points, biggest jump since Oct 2009
Shanghai Daily,
January 18, 2012
“SHANGHAI stocks snapped a four-day losing streak today with a big rebound on speculations that the government will ease monetary policies and local pension funds will be allowed into the stock market.” Read more

Bigger drop in inflation
Shanghai Daily, 
January 18, 2012
“CONSUMER prices in the eurozone fell more than previously expected in December, the start of a retreat from a November peak that should give the European Central Bank more room to cut interest rates as the economy heads for recession.” Read more

Industries beat output outlook
Shanghai Daily,
January 18, 2012
“CHINA'S industrial production surpassed expectations by growing 12.8 percent last month, according to data released by the National Bureau of Statistics yesterday.” Read more

London to Be an International Trading Center for RMB
CRI English, January
 17, 2012
“British and Hong Kong leaders are now promising to team up to develop London into an international trading center for the renminbi.” Read more

Why companies choose to acquire their supply chains
Shanghai Daily, 
January 17, 2012
“BUSINESS lore and business school classes are full of stories about vertical integration. They range from the classic tales of Carnegie Steel Co, Ford Motor Co's River Rouge complex, and General Motors Corp's 1926 acquisition of Fisher Body, to Boeing Co's recent decision to bring production of the 787 Dreamliner in-house after costly delays at its suppliers.” Read more

No Timetable for Int'l Board: Shanghai Mayor
CRI English, 
January 17, 2012
“Shanghai's mayor now says there is no timetable for the city to launch its international board, which would allow foreign issuers to sell shares in China.” Read more

China Launches First Iron Ore Trading Platform
CRI English, 
January 16, 2012
“China launched its first iron ore physical trading platform on Monday, a move designed to strengthen its hand in iron ore pricing.” Read more

Mayor Han: It's not right time to launch int'l board of Shanghai Stocks Exchange. No time table
Shanghai Daily, January 16, 2012
“Mayor Han: It's not right time to launch int'l board of Shanghai Stocks Exchange. No time table (for foreign firms to sell shares in Shanghai).” Read more

Investors may target housing and consumption
Shanghai Daily, 
January 16, 2012
“INVESTORS may be willing to spend more on daily consumption and property purchases this year as they continue to be cautious toward the stock market, which caused them to suffer losses in 2011, according to a survey.” Read more

China's Defense Equipment Manufacturer Says Profits Up 27.6 Pct
CRI English, 
January 14, 2012
“China North Industries Group Corp. (NORINCO), the country's largest defense equipment manufacturer, said Saturday that its profits rose 27.6 percent year-on-year to reach 8.65 billion yuan (1.37 billion U.S. dollars) in 2011.” Read more

US retail sales gain
Shanghai Daily, 
January 13, 2012
“It was the second straight month that sales have topped US$400 billion. Never before had monthly sales reached that level.” Read more

Supportive policies urged as profits at 30% of SMEs drop
Shanghai Daily, 
January 13, 2012
“PROFITS at about 30 percent of Shanghai's small and medium-sized enterprises have declined, according to an industry survey, as businesses called for more supportive policies from the government.” Read more

China still top auto market even as sales gain falls to least in 13 years
Shanghai Daily, 
January 13, 2012
“CHINA retained its crown as the world's largest auto market for a third consecutive year in 2011 despite the growth in sales falling to the least in 13 years.” Read more

China's Top Train Maker Allowed to Raise 9 bln yuan on Stock Market
CRI English, 
January 12, 2012
“The listed arm of China's biggest train maker, China South Locomotive and Rolling Stock Industry (Group) Corporation (CSR), has been allowed by regulatory authorities to raise 9 billion yuan (1.41 billion U.S. dollars) on the stock market.” Read more

Price of Farm Produce Continued to Rise and Material for Production Leveled off
Chinese Minister of Commerce, 
January  12, 2012
“The prices of major farm produce monitored by MOFCOM saw a slight rise last week (January 2-8), while price of material for production was in the main stable.” Read more

Natural gas falls to lowest price in a decade
Shanghai Daily,
January 12, 2012
“NATURAL gas in the US is the cheapest it's been in a decade.” Read more

Yuan's role in trading is set for expansion
Shanghai Daily, 
January 12, 2012
“CHINA will expand the yuan's use in cross-border trade and investment as the country seeks to guard itself against global economic uncertainties and financial risks, a senior central bank official said yesterday.” Read more

Yuan value seen rising in cautious increments
Shanghai Daily, 
January 12, 2012
“AS China's exports weaken and the trade surplus contracts, economists are expecting authorities to allow a slower appreciation of the yuan and adopt a more cautious approach in their resolve to reform exchange rates in 2012.” Read more
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