US-China Trade Update 2-3-2012:China's New Year

The Year of the Dragon has Chinese retail and tourism booming. Chinese tourism rose 23.6  percent in revenue from last year around this festival holiday. Retail for China also looked promising with shops and restaurants around the country pulling in a mere 470 billion yuan in sales volume all together. Meanwhile, Beijing also received a New Year surprise. The city’s Environmental Monitoring Center has reported, particulate matter smaller than 2.5 micrometers and other pollutants are shown in their recent readings. This festival holiday, the Year of the Dragon; January 23 brought nothing but good to China as it’s off to a great new year.

All this and much more in this week’s US-China update.

Global Relations


Dissent exacts a different price for Liu
Asia Times, Feb. 1, 2012

“Beijing - Liu Xiaobo, the imprisoned Nobel Peace Prize laureate, has been placed at the forefront of the fight for human rights in China once again with a new collection of works published in translation this January.” Read more

Bigger PMI size
Shanghai Daily, Feb. 1, 2012

“China will gradually expand the sample size for measuring the Purchasing Managers' Index from 820 companies now to around 3,000, authorities said yesterday.” Read more

Success in business is more about learning than luck
Shanghai Daily, Feb. 1, 2012

“Can you really learn to be an entrepreneur? New research suggests that top Chinese business players do indeed learn. They teach themselves to become better and better at making money.” Read more

US banks won't cheer more capital, but they need it
Shanghai Daily, Jan. 31, 2012

“NOT long ago, Washington policy makers, especially the Treasury and the Federal Reserve, were declaring the US banking system safe from the throes of the subprime-mortgage crash.” Read more

Cross-strait winds of change blow cold
Asia Times, Jan. 31, 2012

“Taipei - International media have been abuzz with reports that Taiwan's presidential and legislative elections in January impressed the masses in China deeply. But now the dust has settled, it remains questionable that the spectacle will be enough to speed up China's own democratization.” Read more

China Mulls More Regulation of Property Market
CRI English, Jan. 31, 2012

“China is mulling a new round of efforts to regulate the sizzling property market after the moves it imposed about a year ago to limit purchases of residential apartments effectively brought down prices, analysts said Tuesday.” Read more

China cracks down on unrest ahead of Tibetan holiday
CNN China, Jan. 31, 2012

“Chengdu, China (CNN) -- Thousands of Chinese security forces have flooded into an ethnically Tibetan area of southwestern China following large protests that led to violent, sometimes deadly, clashes with the police.” Read more

Wen: Government Debt Safe, Controllable
CRI English, Jan. 31, 2012

“China's government debt is at an "overall safe and controllable" level, said Premier Wen Jiabao, who pledged that funding for key projects would be ensured and steps would be taken to gradually digest the risks.” Read more

New home sales in Shanghai fall to lowest in 7 years
Shanghai Daily, Jan. 31, 2012

“NEW home sales in Shanghai during the week-long Lunar New Year holiday fell to the lowest in seven years on a sluggish buying sentiment.” Read more

Sales Volume of China’s Automobiles Has Surpassed 18 Million again in 2011
Chinese Ministry of Commerce, Jan. 31, 2012

“The growth of China’s automobiles market shows a slow steady downward trend. The sales volume has surpassed 18 million.” Read more

Hope rises for US economy as Americans' incomes expand
Shanghai Daily, Jan. 31, 2012

“Americans' incomes rose in December by the most in nine months, a hopeful sign for the economy after a year of weak wage gains. But consumer spending was flat.” Read more

China Invests Heavily in Water Conservation
CRI English, Jan. 30, 2012

“China invested 345.2 billion yuan (54.75 billion U.S. dollars) in water conservation projects last year, a senior official said Monday.” Read more

Funds face tougher conditions in 2012
Shanghai Daily, Jan. 30, 2012

“China's private equity firms will face tougher rules and more difficulties in raising money this year, Zero2IPO Research Center said.” Read more

Venture capital for Chinese start-ups grows 50% in 2011
Shanghai Daily, Jan. 30, 2012

“Some US$8.95 billion of venture capital was poured into Chinese start-up firms in 2011, an industry report showed today.” Read more

China's new home loans plunge by 770b yuan in 2011
Shanghai Daily, Jan. 30, 2012

“China's cooling property market had slowed the growth of housing loans last year, while the overall bank lending also moderated under tight monetary controls, the central bank said today.” Read more

China Issues 175 Bln Yuan in Loans to Support Low-income Housing
CRI English. Jan. 30, 2012

“China's central bank said Monday that banks lent 175.1 billion yuan (27.77 billion U.S. dollars) to support the construction of low-income housing in 2011.” Read more

China's Tourism Revenue up 24 Pct for Spring Festival Holiday
CRI English, Jan. 29, 2012

“China's tourism revenue rose 23.6 percent during the Spring Festival holiday from the same period last year, the National Tourism Administration said on Sunday.” Read more

China's Retail Sale Booms during Spring Festival Holiday
CRI English, Jan. 29, 2012

“During the week-long Spring Festival holiday which started on Jan. 22, shops and restaurants across the country pocketed 470 billion yuan (74.4 billion U.S. dollars) in sales volume, with that of clothes, jewelry and foods up 18.7 percent, 16.4 percent and 16.2 percent respectively, according to data from the Ministry of Commerce.” Read more

Zimbabwe's yearn for yuan
Asia Times, Jan. 28, 2012

“Bulawayo - From downtown shops that stock cheap clothing and shoes that fall apart after one wear, to mining concessions in platinum, gold and diamonds - the Chinese finger is now in virtually every Zimbabwean pie.” Read more

US economy picked up modestly in Q4
Shanghai Daily, Jan. 28, 2012

“The us economy picked up speed in the fourth quarter, fresh data showed yesterday, but it appeared to be still struggling to click into second gear as investment and consumer spending remained weak.” Read more

U.S. Economy Grows 2.8 Pct in Fourth Quarter
CRI English, Jan. 27, 2012

“U.S. economy increased 2.8 percent year on year in the fourth quarter of 2011, the fastest pace of the year, the Commerce Department said in a report on Friday.” Read more

Beijing's New Year surprise: PM 2.5 readings
CNN China, Jan. 27, 2012

“Beijing (CNN) -- Beijing ushered in the Year of the Dragon with a bold move.
Starting this week, the city's Environmental Monitoring Center has begun reporting air quality data that includes readings of PM2.5, or Particulate Matter smaller than 2.5 micrometers, and other pollutants.” Read more

Advance Estimate of GDP for the Fourth Quarter of 2011
White House Council of Economic Advisors, Jan. 27, 2012

“Today’s report shows that the economy posted its tenth straight quarter of positive growth, as real GDP (the total amount of goods and services produced in the country) grew at a 2.8 percent annual rate in the fourth quarter of last year. For 2011 as a whole, GDP rose by 1.7 percent, raising the level of real GDP 0.7 percent above where it was at the start of the recession in the fourth quarter of 2007.” Read more

US Plans to Sell off Remaining Gulf Oil Leases
CRI English, Jan. 27, 2012

“The U.S. government announced Thursday its plans to sell off oil and gas leases on 38 million acres of the Gulf of Mexico seafloor.” Read more                                                    

U.S. Senate Permits 1.2 Trillion Dollar Debt Limit Hike
CRI English, Jan. 27, 2012

“The U.S. Senate voted Thursday in favor of the request from the President Barack Obama to increase the federal debt limit by 1.2 trillion U.S. dollars.” Read more

China losing media war over self-immolation
Asia Times, Jan. 26, 2012

“New Delhi - A series of 15 self-immolations by Tibetan monks since last March has thrown a harsh spotlight on China's Tibet policy. While Beijing insists the acts are "separatist propaganda" incited by exiles, international opinion is not swaying in its favor.” Read more

Fed pledges longer time for low rates to boost economy
Shanghai Daily, Jan. 26, 2012

“The US Federal Reserve announced no further steps in its monetary policy, but pledged to keep the exceptionally low levels of key interest rate for even a longer time to boost economic recovery.” Read more

Capitalism defended by CEOs
Shanghai Daily, Jan. 26, 2012

“Some of the world's top CEOs are admitting that capitalism is worsening inequalities, but they say it's better than any alternative.” Read more

IMF cuts world growth forecast
Shanghai Daily, Jan. 26, 2012

“The eurozone debt crisis is escalating and dragging down the world economy, the International Monetary Fund said on Tuesday, as it sharply cut its outlook for global growth and called for policies to restore confidence.” Read more
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Shanghai to Become Yuan Center
CRI English, Jan. 31, 2012

“Shanghai will become the global center of yuan trading, clearing and pricing by 2015, in line with a State plan to make the city an international financial hub by 2020.” Read more

China regrets WTO ruling on raw material exports
Shanghai Daily, Jan. 31, 2012

“China regrets that the World Trade Organization upheld its ruling against China in a raw material export case, the Ministry of Commerce said today.” Read more

China to make Shanghai global yuan hub by 2015
Shanghai Daily, Jan. 31, 2012

“Shanghai is set to become a global yuan trade center by 2015, with its financial market transactions almost tripling to 1,000 trillion yuan (US$158 trillion), city authorities said yesterday as a detailed plan for the future international financial center was revealed.” Read more

Vice Minister Zhong on Inspection Tour to Macao for Secured Supply of Agricultural and Side-line Products to Macao
Chinese Ministry of Commerce, Jan. 30, 2012

“As required by Central Government, Mr. Zhong Shan, Vice Minister of Commerce and Deputy China International Trade Representative, headed a delegation to Macao from January 15 to 16.” Read more

China's A-share Markets to See 300 IPOs
CRI English, Jan. 30, 2012

“A new report shows that China's A-share markets will see around 300 IPOs in 2012, with IPO financing remaining stable.” Read more

Bearish start for Shanghai stocks in lunar New Year
Shanghai Daily, Jan. 30, 2012

“Shanghai's stock market set a bearish tone for the Year of the Dragon on its first trading day after a week-long break as the country's cooling housing market and limited credit easing overshadow China's economic prospect.” Read more

Shandong Province Tops China's Labor Export List
CRI English, Jan. 29, 2012

“East China's Shandong province, the country's largest labor exporter, sent nearly 50,000 laborers abroad in 2011, local authorities said Sunday.” Read more

RMB Exchange Rate near Equilibrium Level
CRI English, Jan. 28, 2012

“China's reform of the renminbi (RMB), also known as the yuan, has been successful, and the yuan's exchange rate is approaching an equilibrium level, an adviser to China's central bank said Friday.” Read more

January rally interrupted as buyers pull back
Shanghai Daily, Jan. 27, 2012

“A month-long rally on Wall Street appears to be sputtering as stocks slipped yesterday in what investors called a possible warning of weakness ahead.” Read more

US, Hong Kong eye trade with Sultanate
East-West Center, Jan. 27, 2012
“Brunei has been catching the attention of potential trade partners as a founding member of the Trans-Pacific Partnership, the Oxford Business Group (OBG) said.” Read more

Japanese trade goes red; 1st time in 30 years
Shanghai Daily, Jan. 26, 2012

“The devastating March tsunami and shift of manufacturing overseas plunged Japan's trade account into the red for the first time since 1980, the government said yesterday in a report that prompted experts to say that the years of Japan running massive trade surpluses are likely over.” Read more

China tweaks tools for a soft landing
Asia Times, Jan. 25, 2012

“Just as in the political and social arenas, the economic focus of the Hu Jintao-Wen Jiabao administration in 2012 will be upholding stability. In view of factors including the eurozone debt crisis - which will impact on China's exports to Europe adversely - top priority is being put on preventing a hard landing of the economy.” Read more
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China's 2011 Bond Issuance Drops 20.4%
CRI English, Jan. 31, 2012

“China's bonds issued in 2011 totaled 7.8 trillion yuan (1.24 trillion U.S. dollars), down 20.4 percent from a year earlier, the country's central bank said Tuesday.” Read more

China's Yuan Strengthens to 6.3056 against USD Monday
CRI English, Jan. 30, 2012

“The Chinese currency Renminbi, or the yuan, gained 82 basis points to 6.3056 against the U.S. dollar on Monday, according to the China Foreign Exchange Trading System.” Read more

China's Top Auditor Warns of Fiscal Risks
CRI English, Jan. 30, 2012

“China's top auditor is warning of potential risks in the fiscal and financial sectors this year.” Read more

Wen: Government debts 'safe and controllable'
Shanghai Daily, Jan. 30, 2012

“Chinese Premier Wen Jiaobao said China's government debt is "overall safe and controllable," and China must ensure a continual funding for key projects while tackling financial risks.” Read more

China to Continue Crackdown on Hot Money Inflow
CRI English, Jan. 28, 2012

“China will continue to crack down on illegal cross-border capital flow this year in an aim to protect the country's economic and financial security.” Read more

Attack on China's RMB Exchange Rate Unfair
CRI English, Jan. 27, 2012

“Attack on China's currency exchange rate is totally unfair as the renminbi (RMB), also known as yuan, has been continuously appreciating, an adviser to China's central bank said Friday.” Read more
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Global Relations

WB Boosts Assistance for Emerging Countries in Europe and Asia
CRI English, Jan. 26, 2012

“The World Bank said on Wednesday it was making 27 billion U.S. dollars in funding available for countries of emerging Europe and Central Asia to help them weather the euro zone crisis.” Read more

The Downside to America's Fracking Frenzy
The Globalist, Jan. 26, 2012

“In this new report from The Globalist Research Center, John Mathews explains how shale gas has been actively promoted in the United States as means of alleviating the country's dependence on foreign oil. It is a strategy, he writes, that will simply postpone the United States' arrival at a renewable energy future.” Read more

Global elite seek new path for capitalism in Davos
Shanghai Daily, Jan. 25, 2012

“The world's political and business elite will shelter from the chill winds buffeting the global economy and plot a new path for capitalism at the annual Davos forum which begins today.” Read more

The Globalist Debate: A Weaker Dollar Can Help the U.S. Economy
The Globalist, Jan. 25, 2012

“In the opening essay of this Globalist Debate, Barry Eichengreen argued that a weaker dollar will do little to reverse the loss of U.S. manufacturing jobs overseas. In this response, ITIF President Robert D. Atkinson makes the case that a weaker dollar will help U.S. manufacturers become more competitive and keep jobs at home.” Read more
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