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To: RealMuLan who wrote (14492)	11/1/2004 3:03:21 PM
From: RealMuLan	Respond to of 116555

New laws spell success for foreign capital in China Publish Date : 11/1/2004 7:35:00 PM Source : India-Economy/Tech-China Beijing formulated nearly 40 new laws to liberalise trade in services, including finance, insurance, telecom, retail, tourism and transportation, Chinese Vice Minister M.A. Xiuhong told a Global Forum on International Investment here. The new laws were a part of China's commitment to the World Trade Organisation (WTO) which it joined in December 2001, she told a forum of the Organisation for Economic Cooperation and Development (OECD) and the Confederation of Indian Industry. "In order to implement WTO rules and China's commitments, the government also reviewed over 2,500 laws and regulations, abolished 840 and amended nearly 400 of them," the minister said. The country's service sector became a hotspot for foreign investment leading to the setting up of 17,351 foreign-invested enterprises from January 2002 to August 2004 realising foreign investment of $33.4 billion, she added. Xiuhong said as of September, China had some 500,000 enterprises having overseas investment of a $550.2 billion. About 450 of the world's top 500 companies had invested in China, which was also the regional headquarters for many, she added. "China's open-door policy in foreign investment, utilised in a positive and effective way, facilitates the shaping of its open economy and promotes its leap forward in development," she said. In 2003, companies having foreign investment accounted for 28 percent of China's gross industrial added value and shared 11 percent of its net investment. These enterprises also contributed 55 percent of the country's exports and accounted for 10 percent of its non-agricultural work force, Xiuhong said. The minister also said her country had taken effective measures to continuously strengthen law enforcement in intellectual property rights compatible with WTO. --Indo-Asian News Service onlypunjab.com

To: RealMuLan who wrote (14492)	11/2/2004 6:57:29 AM
From: Rarebird	Read Replies (1) \| Respond to of 116555

<People's Bank of China cannot put the INFLATION genie back into the bottle with a token increase in rates, when consumer prices have been climbing uncomfortably close to a seven-year high of 5.3 percent for four months.> China's producer prices rose 7.9 percent last month from a year earlier as the cost of crude oil, coal and steel products increased, according to Beijing-based Mainland Marketing Research, which compiles the monthly figures for China's own National Bureau of Statistics. It is China's producer prices which matter. When such prices climb, in leu of increasing the prices which China is selling at, the climb cuts into company margins and therefore earnings and profits. China can, of course, try to hand-off these higher production costs by raising their selling prices in the US, but they have another economic choice. They can let their own currency climb in value against the US Dollar. It is true that a higher Chinese currency would lower China's import costs and therefore, with a lag in time, their own producer prices but it would still mean higher end selling prices for Chinese goods sold inside the US market.