IN BRIEF (Page 18)

Tougher EU penalties for solar makers

Producers of solar panels in China may face serious penalties or tougher regulations in Europe, where local competitors have accused them of using products made in other Asian locations to avoid import duties, industry insiders have said.

The complaint, filed with the European Union, is likely to trigger a wider trade dispute and affect the profits of Chinese solar producers.

Chen Jie, director of the solar energy center of Shenhua's National Institute of Clean and Low Carbon Energy, said the EU might cut the annual import quota for Chinese solar cells and modules if it finds the producers at fault after an investigation.

"It could also impose heavy anti-dumping duties on the Chinese products concerned in a repeat of previous disputes, but the final sanctions depend on the market demand for solar products in Europe," he said.

"Given current economic conditions, the EU is considering cutting back subsidies for the solar panel industry. As a result, it may impose a large fine on Chinese firms to compensate solar companies in Europe," Chen said.

GDP growth may slow to around 6.8% in Q2

The nation is expected to see GDP growth of around 6.8 percent in the second quarter, according to a report from the State Information Center of China, the China Securities Journal reported on May 4. Consumer Price Index growth will be around 1.4 percent during the same period, as China's economy slows. But the growth rate is expected to increase to around 7 percent in the second half of the year, according to the report, due to proactive government policies. China's first quarter GDP figure was around 7 percent.

Rolling stock company forges ahead in Russia

China's rolling stock makers are anticipating more exports of high-speed train technologies to Russia, after a consortium from a Chinese company and two Russian firms won the bid for a high-speed rail project linking Moscow to Kazan in Russia.

Russian Railways signed a 20 billion rouble (348 billion euros) agreement with the consortium, which includes China Railway Eryuan Engineering Group Co Ltd, for engineering research, development, project planning, land survey and design documentation for the construction of the high-speed line, according to Russia's Tass news agency.

Although CNR Corp and CSR Corp have exported rolling stock to many countries, China is yet to export high-speed trains with operating speeds in excess of 250 kilometers per hour.

Yu Weiping, vice-president of CNR Corp, said in February that the China-Russia project would be a major focus for the company this year and that the company has provided an initial technical roadmap and local production plan to its partners.

Ministry of Transport to enhance data sharing

The Transport Ministry said on May 4 it aims to strengthen connectivity of transport data and information systems across the country. More efforts will be made to boost resource sharing and coordinate cooperation between government departments in different regions in the next two years, according to the ministry.

Praxair to build two air separation plants

Praxair Inc, the international industrial gas supplier, plans to build two air separation plants in Huizhou, Guangdong province, according to media reports. Praxair aims to supply oxygen and nitrogen to China National Offshore Oil Corp, which is expanding capacity at its Huizhou refinery to 22 million metric tons from 12 million tons.

Transactions in futures market soar to 1.11b

Futures market transactions rose to 1.11 billion during January to April, according to statistics from the China Futures Association. This was up 65.97 percent year-on-year, with the transaction value growing 135.09 percent to 183.88 trillion yuan (26.04 trillion euros), up 135.09 percent. Rebar contracts, traded on the Shanghai Futures Exchange, accounted for 14.94 percent of all transactions.

China Unicom eyes Telefonica data deal

Telecom giant China Unicom has set up a working group to establish a big data joint venture with Spanish telecom operator Telefonica SA, an insider at the Chinese carrier told cnstock.com on May 4. According to the deal, the joint venture will be worth 100 million yuan (14.16 million euros). China Unicom will invest 60 million yuan, while Telefonica will come up with the other 40 million yuan, the report said. The big data joint venture will cover precision marketing. China Unicom has already been in talks with the Australian telecom company Telstra Corp Ltd to set up a similar venture.

Ministry of Finance to scrap fees on raw ore

The Ministry of Finance will scrap raw ore fees for metallurgical mining companies. Instead, mining companies will decide whether to collect the fees or not, cnstock.com reported on May 5. In 2004, the ministry required metallurgical mining companies to pay between 15 yuan and 18 yuan (2.12 euros -2.55 euros) for producing 1 metric ton of raw ore. The new policy will help domestic mines reduce production costs by 3 percent or 16 yuan per ton.

New-energy vehicle review launched

The Ministry of Science and Technology announced on May 5 it will assess the new-energy vehicle sector in Chinese cities. The review will be carried out alongside three other ministries, including the Ministry of Finance. It will focus on the number of new-energy vehicles on the road and the development of charging stations for electric cars. The review will also take in market access for Chinese and foreign car companies, business model innovation and local government policies. The review will start on May 15 and last a month.

Wuhan, capital of Hubei province, plans to add 4,005 charging points for electric vehicles this year. The city's local development and reform commission said a charging service fee would be announced by the end of May. The city also hopes to have an additional 10,500 new-energy vehicles on the road this year. According to data from ctjb.cnhubei.com, there are 13 charging stations and 352 charging points in Wuhan.

Cinda to sell bonds to improve structure

China Cinda Asset Management Co, one of four State-owned managers of soured loans, said it will sell bonds to raise as much as 20 billion yuan (2.83 billion euros). China Cinda plans to sell both three-year debt and a fixed-rate bond with a five-year term, according to a statement. The company will use the proceeds to replenish operating funds and improve its financial structure, according to the statement. The total from the planned offering would exceed the 10 billion yuan China Cinda raised last year.

(China Daily European Weekly 05/08/2015 page18)