US-China Trade Update 4-2-2012: China Continues to Rise

As purchases of new homes in China continue to rise, China’s other ongoing building of railways, urban subways and expressways could be at financial risk. Meanwhile,  China is scheduled to overtake US as the world's largest health products market by 2015 and Apple Inc's chief executive, Tim Cook, made a recent  visit China - making him the first Apple Inc's chief executive to visit China. All this and much more in this week’s U.S. China update.

Contents
Economy
Trade

Economy

Projects may see problems in paying debts
Shanghai Daily, Mar. 28, 2012

“China's massive, ongoing building of high-speed railways, urban subways and expressways represents a huge financial risk in which paying back the debts is problematic, a recent report from the Chinese Academy of Sciences warns.” Read more

Employees expect to be rewarded less
Shanghai Daily, Mar. 28, 2012

“Employees can expect a lower pay rise and a smaller year-end bonus this year as companies take a cautious stance when China's economy slows, an industry survey showed yesterday.” Read more

7 Chinese banks post huge jump in profits
Shanghai Daily, Mar. 28, 2012

“Seven Chinese listed banks have reported a more than 30 percent jump in their total net profits last year, boosted by rising interest income, according to their financial results.” Read more

Shares decline to the lowest in 6 weeks
Shanghai Daily, Mar. 28, 2012

“Shanghai's stocks yesterday fell to the lowest in six weeks as liquor producers dropped on concern demand may weaken and industrial companies posted their first January-February profit decline since 2009.” Read more

Manufacturers' profits fall, spurring calls for stimulus
Shanghai Daily, Mar. 28, 2012

“Profits of Chinese industrial companies declined in the first two months - the first drop since 2009 - which brought calls for more supportive policies to sustain growth in the world's second-largest economy.” Read more

Industrial profit dip makes case for policy shift
Shanghai Daily, Mar. 27, 2012

“The profit of Chinese industrial companies declined in the first two months – the first drop since 2009, National Bureau of Statistics data revealed.” Read more

Purchases of new homes up as buying mood climbs
Shanghai Daily, Mar. 27, 2012

“The rebound in buying sentiment helped boost purchases of new homes in Shanghai last week, with mid to high-class projects dominating the top three best sellers, market data showed yesterday.” Read more

US firms set to invest more
Shanghai Daily, Mar. 27, 2012
“Most US companies in China will invest more in the world's second-largest economy this year but the pace of the increase will slow, according to a survey by the American Chamber of Commerce in China.” Read more

Chairman Alan Krueger Discusses the Measurement of the Economy at the 2012 NABE Economic Policy Conference
White House Council of Economic Advisors, Mar. 27, 2012

“At 8:30 am ET on Tuesday, March 27, 2012, President Obama’s Chairman of the Council of Economic Advisers, Alan B. Krueger, delivered remarks on “Measuring the Improvement in the Economy and Improving the Measurement of the Economy” at the 2012 NABE Economic Policy Conference in Arlington, Virginia.” Read more

The Amazing U.S. Confusion Over Iran Oil Sanctions
The Globalist, Mar. 27, 2012

“Short-term electioneering is causing the United States to impale itself economically on Iranian oil sanctions. If the United States were truly serious about putting pressure on Iran, writes energy expert Matthew Hulbert, the last thing it should be doing is trying to soften prices. In fact, it should be doing the exact opposite.” Read more

Fed says job market is weak
Shanghai Daily, Mar. 27, 2012

“He US Federal Reserve Chairman Ben Bernanke yesterday said the US job market remains weak despite three months of strong hiring and that the Fed's existing policies will help boost growth.” Read more

Cook is first Apple chief to visit China
Shanghai Daily, Mar. 26, 2012

“Tim Cook, the successor of Steve Jobs, visited Beijing today – making him the first Apple Inc's chief executive to visit China, the world's biggest mobile phone market by subscriber numbers.” Read more

Shanghai home sales, prices continue rise
Shanghai Daily, Mar. 26, 2012

“Purchases of new homes continued to rise in Shanghai last week with mid to high-end developments dominating the Top 3 sellers, market data showed today.” Read more

US firms set to raise China investment: AmCham
Shanghai Daily, Mar. 26, 2012

“Most United States firms in China will continue to raise their investment in the world's second-largest economy this year, but the pace of the increase is expected to be moderating, a survey by the American Chamber of Commerce in China showed today.” Read more

The U.S. Supreme Court, Healthcare Reform and Domestic Political Peace
The Globalist, Mar. 26, 2012

“The United States currently suffers from an extreme degree of political polarization. Such a country needs a top court that acts as a centrist voice of moderation — lest that society risk being torn apart at the seams. Alas, the U.S. Supreme Court is no such moderating institution.” Read more

By the Numbers: World Bank Presidents
The Globalist, Mar. 24, 2012

“On March 23, President Obama nominated Jim Yong Kim, the Korean-born president of Dartmouth College and former director of the World Health Organization's HIV/AIDS department, to become the 12th president of the World Bank. We wonder: What profession has yielded the most World Bank presidents? How many were women? Where were they born?” Read more

US to appeal WTO ruling against meat labels
Shanghai Daily, Mar. 24, 2012

“The United States said yesterday it would appeal a World Trade Organization ruling against a law requiring country-of-origin labels on all meat sold in grocery stores, a move that disappointed Canada and Mexico, both of which want the law changed.” Read more

Wind power
Shanghai Daily, Mar. 24, 2012

“China consolidated its position as the world's wind power leader in both newly-installed and cumulative capacities in 2011, according to official figures released by the China Wind Energy Association yesterday.” Read more

Anti-dumping probes
Shanghai Daily, Mar. 24, 2012

“China's Ministry of Commerce yesterday said it will launch an anti-dumping probe into toluene diisocyanate (TDI) imported from the European Union.” Read more

US looking at Chinese steel sinks
Shanghai Daily, Mar. 24, 2012

“The United States has announced plans for an anti-dumping and countervailing probe over China's steel sinks, China's Ministry of Commerce said yesterday, cautioning domestic manufacturers.” Read more

Obama proposes Kim for WB
Shanghai Daily, Mar. 24, 2012

“United States President Barack Obama yesterday nominated Dartmouth College president and global health expert Jim Yong Kim to lead the World Bank, an unconventional pick that could help to quell criticism in the developing world of the US stranglehold on the international organization's top post.” Read more

Yuan's mid-point fixed at a record high
Shanghai Daily, Mar. 24, 2012

“The yuan's daily mid-point was fixed at a record high yesterday, leading to speculation that the central bank had guided the yuan to be stronger to strengthen market confidence amid slowing economic growth and rising foreign debt.” Read more

Banks 'misclassified' 20% of debts
Shanghai Daily, Mar. 24, 2012

“Chinese banks misclassified about 20 percent of their outstanding loans to local governments, understating the risk that slowing revenue will cut borrowers' ability to repay, a person with knowledge of the matter has said." Read more

China hits rough patch, but landing looks soft
CNN China, Mar. 23, 2012

“New York (CNNMoney) -- The high-flying Chinese economy appears to be losing some altitude, but experts say the danger of a hard landing still seems remote.” Read more

Property tax trials set for more cities
Shanghai Daily, Mar. 23, 2012

“China will extend a property tax trial to more cities at an "appropriate time" this year and deepen resource tax reform, its top planning body said yesterday as the nation moves toward a more market-based economy.” Read more

China may meet 4% inflation target
Shanghai Daily, Mar. 23, 2012

“China may meet its inflation target of 4 percent this year and its economy may grow about 8.5 percent as long as there is no major global financial crisis and the domestic property market remain stable, a senior researcher of a state think-tank said yesterday.” Read more

Flash PMI shows activity drops to 4-month low
Shanghai Daily, Mar. 23, 2012

“Activity in China's crucial manufacturing sector fell to a four-month low in March, preliminary figures from HSBC's Purchasing Managers Index showed yesterday, stoking fears that growth in the world's second-largest economy may be slowing more than expected." Read more

Healthy living
Shanghai Daily, Mar. 23, 2012

“China will overtake US as the world's largest health products market by 2015, with the county's increasing demand for disease prevention, the China Chamber of Commerce for Import and Export of Medicines and Health Products predicted yesterday.” Read more

Capping coal output to cut dependence
Shanghai Daily, Mar. 23, 2012

“China aims to cap annual coal production at 3.9 billion tons by 2015 to curb reliance on the dirtier fuel which will remain China's main source of power in the foreseeable future.” Read more

Housing project releases to plunge this weekend
Shanghai Daily, Mar. 22, 2012

“More than 400 units at six residential projects in Shanghai are set to be released over the coming weekend, a plunge of nearly 70 percent from the two days a week earlier, according to research released today by Soufun.com.” Read more

Tariffs on solar panels 'will harm US industry'
Shanghai Daily, Mar. 22, 2012

“A Chinese industry group has hit out at a US decision to impose tariffs on solar panels imported from China.” Read more
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Trade

MOFCOM Started Anti-dumping Investigation on Imports of TDI from the EU
Chinese Ministry of Commerce, Mar. 26, 2012

“The Ministry of Commerce of the People’s Republic of China, on March 23, released its Announcement No. 14, 2012, deciding to launch an anti-dumping investigation on imports of Toluene Diisocyanate (TDI) from the EU.” Read more

MOFCOM Answered Questions by Reporters Concerning U.S. Export Control to China
Chinese Ministry of Commerce, Mar. 26, 2012

“U.S. ambassador to China Mr. Luo Jiahui mentioned questions concerning U.S. export control to China in Shanghai. Mr. Shen Danyang, spokesman of MOFCOM, answered questions put up by reporters and said that Chinese side had noticed the questions raised by ambassador Luo and any measures conducive to expanding Sino-U.S. hi-tech trade were welcomed by Chinese government. But till now U.S. side has not take any substantive measures concerning relaxation of restrictions on exports to China.” Read more

MOFCOM Started Anti-dumping Investigation on Imports of Resorcinol from Japan and U.S.
Chinese Ministry of Commerce, Mar. 26, 2012

“The Ministry of Commerce of the People’s Republic of China, on March 23, released its Announcement No. 13, 2012, deciding to launch an anti-dumping investigation on imports of M-dihydroxybenzene or resorcinol from Japan and U.S. Tariff No. of the imports is 29072100 under Import and Export Tariffs of the People's Republic of China.” Read more

Head of MOFCOM Department of Fair Trade for Imports and Exports Comments on U.S. Preliminary Ruling of Anti-subsidy Investigation against Imports of Solar Cells from China
Chinese Ministry of Commerce, Mar. 23, 2012

“The U.S. Ministry of Commerce has made preliminary ruling on anti-subsidy investigation against imports of solar cells from China on March 19, 2012. The ruling believes that Chinese enterprises have a subsidy rate ranging from 2.9% to 4.73% and should pay tax traced back 90 days.” Read more

Stocks hit 3-month low on global growth fears
Shanghai Daily, Mar. 23, 2012

“Shanghai stocks sank on deepened worries that slowing economic growth is hurting earnings, and causing commodity prices to slump.” Read more

A Brief History of Supply Chains
The Globalist, Mar. 22, 2012

“Before there were Chinamax cargo ships, cloud computing and satellite communications, there were steamships and the telegraph. Before that were sailing vessels and pack animals. Sanjeev Sanyal, global strategist at Deutsche Bank, traces the technological developments that have changed the way the world moves its imports and exports.” Read more

Us Agricultural Exports To Asean Grow - But Face Competition
East-West Center, Mar. 22, 2012

“Michael McConnell, International Trade Analyst at the US International Trade Commission, explains that while US agricultural exports to ASEAN countries continue to grow, “the United States is likely to face increasing competition, particularly from China, Australia, and New Zealand, all of which have free trade agreements with ASEAN.” Read more
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