Invest China Newsletter No. 10
1, Developing the western land of China will be included in the Twelfth-Five-Years- Plan.
China is making its Twelfth–Five–Years-Plan, which will indicate the strategic policies on the China’s economic development. The economy of China has increased by more than 8% for last three decades, and the GDP of China will be expected to surpass that of Japan in 2010; but the economic gap in China between the East and West is growing. In order to ensure the social stabilization in China, the Chinese government has been encouraged to invest in the western area, which is endowed with rich natural resources such as cooper, gold etc. The Chinese government launched the developing western strategy in beginning of 2000. Within the ten years, most of foreign investors have invested in the infrastructure projects such as energy, highway and airport. Mr. Hu Jintao, the Chinese President, inspecting at Gansu province and Ningxia autonomous area last week, said the central government of China will implement more preference policies for encouraging investment in the western area in the Twelfth-Five-Years-Plan. That means more investment opportunities for foreign investor to come. Go to China, share with the prosperous of the economy. (Xinhua News)
2, China opens the transportation, telecommunication, and energy industries to the non-state investors.
The transportation, telecommunication and energy industries have been controlled by the State-owned corporations for sixty years. Although, a non-state investor has been permitted to run a bus route and invest some railway lines at outskirt for last two decades, but the main investors in the transportation, telecommunication and energy industries are the state-owned corporations. With the boom of the Chinese economy, the bottle neck of the economy of China always reveals in the infrastructure. The Chinese governments have invested in more funds in these fields, but it still has not met the highly demand for decades. So, China will open the investment in these fields to a non-state Chinese investor as well as a foreign investor. (Xinhua News)
3, The demand for the iron ore in China highly dependents on the world markets
A Chinese official, Mr. Xin GuoBin, with the Ministry of Industry and Information Technology, said China’s dependence on foreign iron ore approached about 70 percent in 2009, 13 per cent points higher than last year. And he said the iron ore imported by China accounted for 75 percent of world trade last year. Therefore, China’s power in the course of negotiation of the price of iron ore is losing, and the foreign suppliers of iron ore, such as BHP Billiton Ltd., Rio & Titon and Vale SA, demand for high price from the Chinese steel companies. (China Daily)
4, China Unicom lost net profits in 2009
China Unicom (SH 600050, HK 00762) net profits of year of 2009 are down by 73%, to 9.56 billion Yuan. (Feng Huang News)
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