Australia, China make progress in free trade talks
Jun-30-2014 By : fcccadmin
China and Australia may conclude a decade of negotiations on a free-trade agreement by the end of this year, Australian officials said following talks between Xu Shaoshi, Chairman of China’s National Development and Reform Commission (NDRC) and Australia’s Treasurer Joe Hockey. “Both governments are determined to bring it to completion later this year,” said Australian Minister for Trade and Investment Andrew Robb. The complex negotiations, which include agricultural tariffs and quotas, manufactured goods, foreign investment and services, have not gone smoothly. Robb, who was in Beijing for the inaugural Australia-China Strategic Economic Dialogue, said one of the most difficult parts was agriculture. Measures under discussion also include the appointment of a yuan clearing bank in Australia. China is now Australia’s largest two-way trading partner in goods and services, valued at more than USD150 billion in 2013. China is also Australia’s largest export market for goods, valued at USD95 billion in 2013. Trade and Investment Minister Robb also said that Australia welcomes more Chinese investment in northern Australia.
EU investigates Chinese stainless steel products
By : fcccadmin
The European Commission (EC) has launched an anti-dumping investigation in cold rolled stainless steel product imports from China and Taiwan, as it felt that they were being dumped at prices lower than the actual costs in the European Union. Xu Xiangchun, Information Director of Mysteel.com, a steel industry consultancy based in Shanghai, said the Chinese government has not announced any policies to encourage exports of steel products or provide subsidies to these companies. “Most of the steel companies have increased exports due to weak domestic demand and falling prices,” he said. “If the EC decided to impose punitive taxes on stainless steel products, it will hurt many of these companies.” However, the EC decision will not have a big influence on China’s full-year steel exports as stainless steel accounts for a small portion of total exports. According the EU statistics office, the EU imported cold-rolled stainless steel sheets from the Chinese mainland and Taiwan with a total value of €758 million in 2013, a 10-fold increase from 2002. China’s steel industry is facing severe overcapacity caused by shrinking demand and huge production capacities built up in the past few years. Many domestic steel producers have been trying to expand in overseas markets to maintain operations. According the China Iron and Steel Association (CISA), China’s steel products exports totaled 18.33 million metric tons in the first quarter, up 27% year-on-year.
Food Safety Law to include heavier penalties
By : fcccadmin
A draft revision to China’s Food Safety Law that pledges tough sanctions for offenders and the strictest supervision system had its first reading last week at the bimonthly session of the Standing Committee of the National People’s Congress (NPC). A number of acts of malpractice, including injecting clenbuterol into pork, recycling cooking oil from leftovers in restaurant kitchens, selling meat from sick pigs, making medicine capsules with toxic gelatin, and passing rat and fox meat off as mutton and beef have made headline news in China in recent years.
Plaintiffs face high costs, evidence and procedure hurdles
By : fcccadmin
Plaintiffs in patent cases are often challenged by high costs, difficulty in collecting evidence and time-consuming procedures as they try to protect their intellectual property rights through the judicial system, said experts at a recent forum in Beijing organized by the China Intellectual Property News. In 2013, intellectual property offices and IP protection centers resolved more than 5,000 patent disputes nationwide, double the number a year earlier.
HSBC PMI above 50 for first time since November
By : fcccadmin
The HSBC Flash China Manufacturing Purchasing Managers’ Index (PMI) rose to a seven-month high of 50.8 for June. It was the first time the index was above the 50 level demarcating expansion from contraction since November. The components showed that production picked up by 2 points from a month earlier to 51.8 in June, and new orders increased 1.8 points to 51.8. The stock of finished goods fell by 1.8 points to 48, registering the lowest level since September 2011. Zhu Haibin, Chief Economist for China at JPMorgan, said the improvement in the flash HSBC PMI suggested the first-quarter slowdown in industrial activity had likely bottomed out. “The manufacturing sector appears to be on track to some decent recovery,” Zhu said. China has announced a number of policies to support growth and create jobs, such as allowing banks to keep a smaller amount of money as reserves and accelerating the construction of railways. There will be two separate sets of undercurrents affecting China’s growth in the second half, Zhu said. “On the positive side, the moderately above-trend growth in the global economy, led by the developed countries, should support China’s export sector,” Zhu said. “On the domestic front, infrastructure investment will likely receive further policy support.” However, the real estate sector remains a key downside risk for the macro-economic picture for the rest of the year, Zhu said, as reported by the Shanghai Daily.
On the other hand, the China Beige Book’s quarterly survey showed that besides manufacturing, other sectors such as transport, mining, retail and services all weakened. “What stands out is weakness – perhaps unprecedented weakness – in capital expenditure,” Leland R. Miller, President of New York-based CBB International said. “Since investment has been the engine of the economy for the past seven years, this weakness has sweeping effects on sectors, regions and gauges of firm performance. Overinvestment has been an addiction and withdrawal symptoms will not be pretty.”
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