NEWS
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Canada FM: China against global bank tax !
| | | Canadian Finance Minister Jim Flaherty said China is backing Canada in its fight against a US-European proposal to create an international tax on banks, the Toronto-based Globe and Mail reported. The idea of a bank levy, supported by the International Monetary Fund as a way to ensure taxpayers are not forced to bail out failing banks as they were during the financial crisis, is a contentious one that is to be discussed at the upcoming G20 meeting in Toronto. Flaherty is in China on an Asian tour lobbying against the idea. He has met with Finance Minister Xie Xuren and will meet with People's Bank of China governor Zhou Xiaochuan today. He has also lobbied India, Brazil, Argentina and Mexico. Support for the levy is highest in countries that were forced to undertake expensive bailouts of their financial sectors, but is unpopular in countries - like China - which believe that their banking systems successfully weathered the storm. Canada prefers an alternative scheme that includes a kind of self-insuring bond issued by banks, called "embedded contingent capital," and better regulation. However, Beijing has yet to make a public statement of support or opposition to the idea, and some commentators question Flaherty's confidence in Chinese support. | | | China to subsidize hybrid, electric vehicle purchases.
Autos
| | | The Chinese government will subsidize purchases of plug-in hybrid and battery-powered cars in a pilot program, the Wall Street Journal reported. Buyers of purely electric vehicles will receive up to US$8,8000 and buyers of qualified gasoline-electric hybrids will receive US$7,333. The two-year program will start this year in Shanghai, Hangzhou, Changchun, Shenzhen and Hefei. Auto executives said the subsidies are likely to only be applied to domestic brands, although the government's statement was not explicit on the point. Most likely to benefit from the policy is Chinese electric car maker BYD (1211.HK), which has already launched a fleet of electric taxis in Shenzhen this year. Nissan Motor (7201.TYO) is planning to introduce its all-electric Leaf model in China next year, but it is unlikely to benefit from the subsidies. Nissan executives said that if such subsidies were offered, the company would consider producing the car in China. | | | Manufacturing growth slows across Asia !
| | | Manufacturing growth in China and other Asian economies slowed in May, the Wall Street Journal reported. Beijing's official purchasing managers index (PMI) fell to 53.9 in May from 55.7 in April as credit tightening policies appeared to take hold. A similar index produced by HSBC also showed a slowdown in growth, from 52.7 down from 55.2 in April. Manufacturing growth in Australia, Taiwan and South Korea also slowed, although India managed to post the highest increase in 27 months. The results have provoked concerns that the global economic recovery remains weak, and had a negative impact in the Chinese markets and on currencies such as the euro and the Australian dollar. HSBC economic Qu Hongbin said in a research note that private consumption and infrastructure investment in China remain strong, reducing the risk of a double-dip slowdown in China. Frederic Neumann, senior Asian economist at HSB, pointed out that inventories are still lean, and therefore any increase in demand will quickly feed back into production growth.
| | | China's biggest railway container terminal opens in Chengdu
| | | Chengdu Railway Container Terminal, acclaimed as the largest railway container terminal in Asia, has started operation after a month's trial run, Logistics Week reported.
Being one of the 18 railway container terminals in China according to Ministry of Railway's plan, the facility covers 8.4 kilometres from the east to the west and 850 metres from the south to the north, taking up an area of 142.7 hectares, entailing an investment of CNY759 million (US$111.2 million). Its capacity is estimated to be at 8.4 million tonnes after it becomes operational and will be raised to 13.7 million tonnes later and ultimately to 26.3 million tonnes.
The railway container terminal is connected with 55 railway hubs in China including Guangzhou and Beijing. Highways linking the facility to Chengdu-Nanchong Expressway are undergoing upgrade projects. A distribution facility is also being built next to it.
The customs and inspection authorities agreed to build up a platform for information exchange together with the Chengdu Railway Container Terminal and the auxiliary distribution facility, which is said to lower time and cost of transportation.
Chengdu recorded a railway cargo movement of 30.67 million tonnes in 2009, ranking the first among western China cities.
 | | | Chinese's Army latest achievements in logistics
| | | According to the data released by the Office of the Military Logistics Support Outsourcing Leading Group, the Chinese People’s Liberation Army (PLA) has obtained beneficial result in its military logistics support outsourcing work after ten years’ efforts since 2000 when the work was broadly carried out through the PLA.
Of the 2,772 military messes listed on the PLA Catering Service Outsourcing Plan, 2,640 have realized outsourcing service by relying on social suppliers.
All 1,319 military post exchanges included in the Business Service Outsourcing Plan have basically realized outsourcing.
Of the 6,222 barracks included in Barrack Support Outsourcing Plan, 5,214 have realized social property management in barrack maintenance, afforestation, sanitation, water-supply, electricity-supply, gas-supply and heating-supply.
160,000 servicemen from the small, remote and scattered units have basically realized medical support of outpatient service and emergency treatment by relying on civilian medical system.
The POL supply for 1,353 small, remote and scattered units included in the POL Supply Outsourcing Plan has realized monetization of POL supply or storing and refilling POL by relying on petroleum companies.
96% of military clothing supply has realized production through public bidding.
Led by the Military Logistics Support Outsourcing Leading Group affiliated to the State Council and the Central Military Commission (CMC), the PLA has totally rescinded 2,296 logistics support agencies, including messes and post exchanges, scaled down 66,000 support personnel and reduced 151 kindergartens and schools of the PLA.
 | | | Siemens sells sorting equipment to China Post in Nanjing
| | | Siemens Mobility received recently an order from China Post to equip the new Nanjing China Post Air Express and Logistics Hub (Nanjing Hub).
Siemens will provide service of the integration of
processing system, and is also to supply 10 sets of parcel sorter and a main parcel sorting control system. The order is worth nearly 45 million euros. The Nanjing Hub is due to go into operation by the end of 2011, whereupon it will become the biggest express and logistics center in Asia and the third biggest in the world.
To meet the increasing demand for economical, efficient and reliable postal services in the country and stand out from the tough competition in express and logistics market, China Post is establishing the large-scale Nanjing China Post Air Express and Logistics Hub, or Nanjing Hub for short. With the integration of a central air hub located at the Nanjing Lukou International Airport at the end of 2011, Nanjing Hub will become a multifunctional center including air transport hub, sorting center, and international and national postal express logistics center.
The scope of supply includes Siemens’ two-level Variosort XB sorter, which will enable the entire system to reach a sorting capacity of 96,000 parcels per hour. The modular design allows easy upgrading of the system and, therefore, subsequent expansion of the sorting capacity. When the Nanjing Hub goes into operation, the integrated solution provided by Siemens will help it to handle over half of the domestic express mail service (EMS). The increased sorting efficiency will greatly shorten the transport, handling and delivery time of express mail, thus creating enormous economic advantages for China Post and providing the public with improved postal services.
| | | Dow to build US$ 17 mil emulsions plant in Zhangjiagang
| | | Dow Coating Materials, a global business unit of Dow Chemical, will build a new emulsion plant at a cost of $17 million in Zhangjiagang in the eastern Chinese province of Jiangsu, the company announced on its web site recently.
Construction of the new plant, one of two Dow emulsion plants in the Shanghai area, is expected to begin in the fourth quarter of 2010, with an expected startup date sometime in late 2011, the company said. Further details such as the capacity of the plant, are not yet available, a company official said, but the plant is aiming for commercial production in 2012. Emulsions are a basic component in manufacturing coatings and paints and the new plant will primarily supply Dow's Coatings and Adhesives business, as well as its functional polymers and building and construction business unit.
"East China remains one of the most dynamic and fastest growing regions in the already expanding Chinese coatings market," said Bruce Hoechner, Vice President and Regional Director of Down Advanced Materials in Asia Pacific. The area is also home to one of Dow's largest research and development facilities, the company added. Several products developed in China include Dow's RHOPLEX/PRIMAL EZ CLEAN series and INVIZIPRO, that have been exported to other regions of the world, the company added. "More than one-quarter of the emulsion products sold by Dow Coating Materials in China were invented in China in the last three years," said Hoechner.
"Our strategic investment in R&D and manufacturing, coupled with the rapid growth in China's middle class and its subsequent impact on paint sales in region, means we are well-positioned to meet the unique needs of the Chinese people, not just today, but for years to come." Dow Chemical's other facilities in the Zhangjiagang area include a 200,000 mt/year siloxane plant, a styrene butadiene latex plant, a 120,000 mt/year glycol esthers plant, a 100,000 mt/year epoxy resin plant, a 150,000 mt/year epichlorohydrin plant and a 120,000 mt/year polystyrene plant that had been mothballed in 2009.
| | | FAW to spend US$ 2.8B on own-brand vehicle R&D
| | | China's auto giant FAW Group Corp recently said that it plans to invest 19 billion yuan ($2.8 billion) in research and development (R&D) over the next five years to speed up its own-brand vehicle development and to boost sales, Shanghai Daily reported.
FAW Group, Chinese partner of Toyota Motor and Volkswagen AG, expects its auto annual sales to hit 4 million units by 2015, with its own-brand vehicles accounting for 50% of the total. Its sales grew 27% to 1.94 million units last year and the sales target for this year is set at 2.3 million.
As part of its efforts to improve its car-making technologies and build up its brand image, the No. 2 auto group in China aims to focus R&D on its home-grown vehicles. Most Chinese automakers intend to raise their sales volumes and market shares by developing their own vehicle brands.
Changchun-based FAW Group, which makes its own-brand Besturn and Xiali cars, will launch 26 new or revamped vehicle models by 2015. The plan will include 11 brand-new vehicles, with four under the Redflag (Hongqi, or HQ) brand, the oldest Chinese car nameplate.
FAW is expected to launch its plug-in hybrid and all-electric cars in October on a trial basis. The company has invested 300 million yuan in these cars' engineering.
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