IN BRIEF (Page 13)

Audi's Chinese sales rise

Volkswagen AG's unit Audi AG said on Wednesday that it sold 140,699 cars on the Chinese mainland and Hong Kong in the first half, up 28 percent from a year earlier.

Sales totaled 27,658 units in June, an all-time monthly record, Audi said in a statement.

Its A4L, A6L and Q5 models are made by Volkswagen's joint venture with FAW Group in the northeastern city of Changchun.

Cotton demand may ease

Cotton demand from China, the world's biggest consumer, may weaken as high costs encourage consumers to switch to cheaper synthetic fibers, said Chen Tao, chairman of Louis Dreyfus (Beijing) Commodities Trading Co Ltd.

Stockpiling by China may keep cotton at about 20,000 yuan ($3,091) a metric ton, Chen said in an interview at a conference in Dalian.

Prices at this level may make cotton a "luxury", and not something cheap and affordable to everyone, said Chen. "It's like when juice is too expensive, people drink tea, and when tea gets expensive, they'll have to make do with just water," he said

Air China to set up subsidiary

Air China Ltd has obtained regulatory approval to set up a subsidiary in Northeast China as it continues to expand its footprint in the country's highly competitive air travel market.

Air China will hold 80 percent of Dalian Airlines Co Ltd, with a unit of the Dalian city government holding the remainder, the Civil Aviation Administration of China, China's top aviation regulator, said on its website on Tuesday.

Major Chinese carriers, which also include China Eastern Airlines Co Ltd and China Southern Airlines Co Ltd, have been competing fiercely for a bigger share of the market. Beijing-based Air China secured a foothold in southern China a number of years ago through the subsidiary Shenzhen Airlines Co Ltd.

High-tech park signs deals

Caohejing High-Tech Park has signed deals for 10 projects worth $290 million with investors, mostly from multinational companies, to set up a regional headquarters and several research and development (R&D) centers in Shanghai.

Among the projects is a China R&D Center, funded by Canada's Cosma International. Also included is an Asian Technology Center and China headquarters for sales of food facilities for ITW Group of the US and a Chinese headquarters for X-Rite Inc.

Chery's exports surge

Automobile exports for Chery Automobile Co Ltd, China's largest domestic carmarker, surged 105.9 percent year-on-year to 16,500 units in June, the best for any month since the 2008 global financial crisis, company sources said on Wednesday.

Chery's first-half exports reached 71,827 units, up 88.5 percent, equal to 59.9 percent of the company's annual target, said spokesman Jin Yibo.

China Daily - Agencies

(China Daily 07/07/2011 page13)