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The State Council approved a pilot program allowing yuan to be used in trade delas between selected provinces and their overseas trade partners in late December 2008. The small step could be a big stride in China's currency history. Page 2

For employees and executives of Chinese computer maker Lenovo Group, the beginning of the new year didn't bring fortune as usual. Page 3

Foreign direct investment (FDI) growth reached $92.4 billion, up 23.58 percent year on year, thanks to the robust growth in the first three quarters, said the Ministry of Commerce last Thursday. However, the year-on-year FDI growth saw consecutive decrease month by month in the fourth quarter of last year due to the global financial crisis, with 0.9 percent in October, 36.52 percent in November and 5.73 percent in December.

A stimulus package for the country's auto industry was unveiled last week by the State Council. To boost the world's third largest auto market, the government said sales taxes on vehicles with engines of less than 1.6 liters will be halved and the exchange of old vehicles for new ones with smaller engines subsidized.

China's December foreign trade fell as the global financial crisis sapped demand. Exports and imports both declined for the second consecutive month in December, reflecting a deteriorating demand in external and domestic markets amid the crisis. The country's exports fell 2.8 percent in December year-on-year to $111.16 billion, after falling 2.2 percent in November, while December imports totaled $72.18 billion, down 21.3 percent year-on-year, after having fallen 17.9 percent the previous month, the General Administration of Customs said last week.

A new Disney theme park is planned in Shanghai. The Walt Disney Co is expected to submit plans to the Chinese government to build a theme park in Shanghai, according to Leslie Goodman, executive vice president for public affairs, Walt Disney Parks and Resorts.

China's foreign exchange reserves increased by $417.8 billion last year, $44.1 billion less than in 2007, said the People's Bank of China last week. The central bank also said the supply of money and loan growth picked up in December, reflecting the government's effort to boost the economy through proactive fiscal and moderately loose monetary policies.

(China Daily 01/19/2009 page1)