IN BRIEF (Page 13)

'Temporary' 5% resource tax

China will "temporarily" set the resource tax on oil and natural gas producers at 5 percent of sales value, the Ministry of Finance said in a statement on Monday.

The government said on Oct 11 that it would impose a value-based tax of 5 to 10 percent on oil and gas sales starting next month to conserve energy and boost local government revenue. The resource tax is currently based on sales volume.

The value-based tax system was tested in the Xinjiang Uygur autonomous region starting last year, with a rate of 5 percent.

China-Belgium ties expand

Companies and institutions from China and Belgium signed 23 economic cooperation agreements covering the transport, clean technology and chemical sectors on Monday.

The signings came during an official visit by Crown Prince Philippe of Belgium, who led a delegation representing 223 Belgian companies.

Mengniu weighs Pfizer unit bid

China Mengniu Dairy Co, the nation's biggest dairy company, may bid for Pfizer Inc's infant-nutrition business, two people with knowledge of the matter said.

Mengniu's consideration of a potential bid is at an early stage, the people said, asking not to be identified because the information is private. The company won't decide whether to proceed until more financial data is available, one of the people said.

The infant-nutrition business may fetch as much as $10.5 billion.

China Mengniu Dairy Co said it is not in any "direct negotiations" involving a bid for Pfizer Inc's infant nutrition business.

China Mengniu "currently has no concrete arrangement or plan" related to a bid, according to a statement to the stock exchange of Hong Kong. The company will "closely monitor developments", it said.

737-900ER on demo tour

Boeing Co's 737-900ER aircraft, the newest and largest member of the 737 family, is to appear in four Chinese cities for a demo tour this week.

Boeing had 413 confirmed orders for the 737-900ER from 16 customers - none in China - as of the end of September. The aircraft is being shown to Chinese carriers in Beijing, Jinan, Haikou and Shenzhen.

The aircraft has 189 seats and a range of almost 5,000 kilometers. The Boeing Sky Interior is installed in the 737-900ER.

Volvo to bolster truck sector

Volvo AB, the world's second-largest producer of heavy-duty vehicles, is planning investments in India and China to bolster its truck business and meet demand from those markets, an executive said.

The truck division's investments in China will include opening research and development centers, and expanding distribution and retail sales, Volvo Group Senior Vice-President Par Ostberg said in an interview in Singapore on Monday.

China Daily - Agencies

(China Daily 10/25/2011 page13)