Friday - August 23

Manufacturing index rises after contracting

China's manufacturing sector rebounded strongly this month, and major economic indicators all point to a stabilization of the economy.

The preliminary reading of the HSBC Holdings Purchasing Managers' Index rose to 50.1 in August from 47.7 in July, ending a three-month consecutive contraction since May.

Zhang Zhiwei, chief economist with Nomura Securities Co Ltd, said China's August PMI confirms that its economy has stabilized in the short term and downside risks for the second half have declined.

China's strengthened manufacturing sector was in line with the recent improvement in factory production in the US and the eurozone, which together are expected to pull emerging markets out of slowing growth, economists said. (Photo 1)

Gates wants more effective flushing in China

The Bill & Melinda Gates Foundation announced a project worth $5 million to re-engineer the common toilet to be more environmentally friendly and cost-effective.

The foundation will allocate grants of between $100,000 to $500,000 to select applicants who will turn their design into a toilet, said Professor Li Zifu of the University of Science & Technology Beijing. Li will oversee the project, which he said has two major goals - sustainability and affordability.

Zero water and electricity consumption, a daily cost below 5 cents per person, no smell, and comfort are also favored, said Doulaye Kone, senior program officer of water, sanitation and hygiene with the foundation.

Monday - August 26

Luxury foreign-car prices are in the spotlight

Luxury foreign-car manufacturers may see selling their cars in China doesn't bring the huge sticker prices they are accustomed to getting.

China's Ministry of Commerce said it will move to change rules governing vehicle sales. A Ministry spokesman said the measures could include limiting auto makers' power to demand a deposit from dealers.

A Xinhua news agency editorial last month called for an investigation into automakers' pricing practices. Xinhua said an Audi Q7 was selling for $163,000, twice as much as it would in Canada. International Business Times reported a Ferrari 458 Italia sports car selling for $724,000 in China, three times what it would cost in the US. Two weeks ago, Luo Lei, deputy secretary general of the China Automobile Dealers Association, said the group was launching an investigation into the "unreasonable pricing and excessive profits" of some foreign car brands in China. (Photo 2)

Broadcom plans next network convergence

Broadcom Corp, a leader in semiconductor solutions for wired and wireless communications, will work closely with China on the country's next network transformation effort.

"China is at the nexus of converging TV, Internet and telecom markets. Broadcom plays an important role in China's nationwide triple-network convergence effort," Li Tingwei, Broadcom's president of Greater China, told China Daily.

Network convergence aims to combine telecom, broadcast and Internet on a single platform.

The triple-network convergence market in China is expected to reach more than 140 billion yuan ($23 billion) by 2015.

Tuesday - August 27

China joins effort to combat tax evasion

China has become the last of the Group of 20 economies to join the international tax convention to combat tax avoidance and evasion by cooperating with other countries in the collection of taxes.

China signed the tax assistance convention with the Organization for Economic Cooperation and Development on Tuesday.

The convention will become effective after three full calendar months following the day of ratification. It provides a framework for administrative cooperation between more than 50 countries.

Figures released by China's State Administration of Taxation last month showed that anti-tax evasion efforts by the Chinese government generated an additional income of some $5.7 billion last year, nearly 30 times the amount in 2008.

Foreign firms not focus of antitrust probes

China's antitrust investigations aren't singling out foreign companies but are instead part of an overall effort at tougher enforcement of the anti-monopoly law, according to an official at China's top economic planning body.

"Most investigations result from public tip-offs and there is no intention of targeting a specific type of companies we treat domestic and foreign companies equally," said Xu Kunlin, director-general of the Department of Price Supervision under the National Development and Reform Commission.

Six infant formula makers, five of them foreign, were fined for price-fixing and anti-competitive practices earlier this month. It's been reported that the vehicle and pharmaceutical industries are also being investigated, raising concerns among companies over what industry will be the next target of antitrust investigators.

The giant panda cub born at the Smithsonian's National Zoo in Washington appears to be in good health. Mei Xiang (pronounced May Sean), the panda mother, gave birth on Aug 23 to the healthy cub and a stillborn twin cub. Mei Xiang was artificially inseminated by a Chinese expert at the end of March. The donated sperm came from Tian Tian at the National Zoo and a panda named Gao Gao at the San Diego Zoo. Courtney Janney / Smithsonian National Zoo Via AP

Wednesday

- August 28

New time limits for processing all visas

A 15-day time limit is being put on applications for residence visas for foreigners in China, the Ministry of Public Security said.

The change is part of a new regulation on exit and entry management for foreigners that aims to clarify the processes of checking and approval, to take effect on Sept 1.

The time limit will apply also for extensions, changes and replacements of residence visas, while a seven-day time limit will be applied to visa-related applications.

Foreigners applying for a new visa or making changes to an existing one must submit their passports to exit-entry officers, who will then confirm the authenticity of existing visas and check the reasons for staying in the country. Foreign applicants will be given a receipt that can prove their right to remain or reside in China until their passports are returned to them.

Overseas investment expected to keep growing

China's overseas investment will maintain a 30 percent growth rate in 2013, with real estate a main investment target, according to a report.

Offshore residential property investment by Chinese high net worth individuals - defined as those with personal assets exceeding 10 million yuan ($1.6 million) - is expanding, said the report by real estate services firm Jones Lang LaSalle.

These investors' most popular offshore residential property destinations include the United States, Canada, Australia and the UK.

A stronger yuan makes overseas assets more affordable for Chinese buyers, said Joe Zhou, head of research for JLL East China. The Chinese currency has strengthened about 30 percent against the British pound since 2005, which is equivalent to a 30 percent discount in the price of residential property in the United Kingdom.

Thursday - August 29

IKEA opens plant to make wood products

IKEA Group, the Sweden-based home furnishing company, opened its first wholly owned manufacturing facility in China to supply IKEA stores, mainly in China.

The factory, which will make wood products, is in Nantong, Jiangsu province.

As the largest sourcing country for IKEA, China accounts for 22 percent of its global purchases, with about 300 local suppliers.

In fiscal 2012, IKEA China's revenue reached 6 billion yuan ($970 million), up 23 percent year-on-year. Revenue was up 15 percent in terms of comparable stores.

In the current fiscal year, IKEA said, its China business grew at a "double-digit" pace, faster than the domestic market overall or in other countries. (Photo 5)

GE forms partnership for electricity grid

General Electric Co has formed a partnership with China XD Electric Ltd to give the US-based company a foothold in China's electricity infrastructure market.

The deal, initially announced last May, has gone through regulatory approvals in China.

GE took 15 percent of the shares of XD Electric, one of China's largest manufacturers of electricity transmission and distribution equipment. The deal will help double sales of power transmission products and services in GE's digital energy business to $4 billion annually in the next decade, Bloomberg News reported.

While sales of one Chinese traditional product are down, producers of another one are looking to boost sales abroad. Mooncakes, the traditional gift for the Mid-Autumn Festival on Sept 19, are experiencing a decline in sales at bakeries, restaurants and five-star hotels. But the makers of the traditional Chinese spirit baijiu are making a push to globalize China's most popular liquor, which is made from sorghum and can be 80 to 120 proof. Li Junfeng / China Daily Kim Kyung-Hoon / Reuters

(China Daily USA 08/30/2013 page8)