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Imports of Chilean fruit on the rise

Food exports from Chile to China saw a strong increase of 35 percent year-on-year to $438 million in 2011, according to Chilean government figures underscore the South American country's position as one of the major fruit suppliers to China.

Chilean fruit take up a substantial share of China's fruit imports. According to data from ProChile, a trade promotion organization at the Chile's Ministry of Foreign Affairs, Chilean cherry exports in 2011 accounted for 75 percent of China's total cherry imports, while plums accounted for 71 percent; grapes, 58 percent; and apples, 54 percent.

China overtook the United States to become Chile's largest trading partner in 2009. Bilateral trade between the two countries increased in 2011 to $29 billion from $24.7 billion a year ago, Chinese data showed.

During the first half of the year, trade between China and Chile increased 14.8 percent year-on-year to $14.7 billion, Chilean customs data showed.

China Eastern issues more shares

China Eastern Airlines Co Ltd has issued new A shares, with a total subscription price of 2.29 billion yuan ($362 million), and new H shares, worth HK$1.62 billion ($209 million), the company announced on Tuesday.

China Eastern Air Holding Co and CES Finance Holding Co Ltd have entered into a subscription agreement to buy the A shares, which can generally be bought only by mainland residents, with China Eastern Airlines.

After the completion of the subscription, China Eastern Air Holding, which is the controlling shareholder in the airline, will hold 43.63 percent of the enlarged total share of the company's capital.

CES Global Holding Ltd will subscribe in cash to 698,865,000 new H shares - which are sold on the Hong Kong stock exchange - at a subscription price of HK$2.32 a share, according to the subscription agreement.

Soybean imports decline in August

China's soybean imports registered a sharp decline of 1.45 million metric tons in August from the previous month, prompting speculation that imports of the beans will gradually decline during the next few months.

According to data from the General Administration of Customs, soybean imports in August were 4.42 million tons, worth $2.73 billion, compared with 5.87 million tons in July.

During the first eight months of the year, the volume of soybean imports increased 17.4 percent year-on-year to 39.34 million tons. The import value increased 15.7 percent from last year to $22.3 billion.

According to a report released by the National Grain and Oils Information Center, China's soybean imports are expected to decline during the rest of the year because of a tight supply and price surges in the international market caused by the extreme weather conditions in global soybean producers, such as the US.

Nansha New Area launched

China has mapped out a new State-level development zone in South China's Guangdong province, the Shanghai Securities News reported on Wednesday.

As the country's sixth State-level New Area, the Nansha New Area is expected to get national support from a series of preferential policies and innovation reforms on tax policy, land management, financial innovation and industrial development.

The other zones are in Shanghai, Tianjin and Chongqing, as well as Zhejiang and Gansu provinces.

Nansha will have two commissions, which will lead the economic transformation and development of the Pearl River Delta and create a platform for cooperation with Hong Kong and Macao. The Nansha New Area will also explore ways for economic reform.

Nansha has a total area of 803 square kilometers, with a land area of 570 sq km, and water area of 233 sq km.

Li Ning closes only Hong Kong store

Li Ning Co Ltd said on Tuesday that it has closed its only shop in Hong Kong to focus on its mainland business.

It was set up in 2009 under a two-year leasing contract by the leading mainland sports brand, but industry analysts said internationalization is no longer a priority for Li Ning because its home market is declining.

Challenges in management, consumer demand and dominance from established international brands have all hindered the development of the company in overseas markets, the company said, insisting its overseas businesses including those in Hong Kong are still in an exploratory phase, with cost and risk control measures in place.

The pullout comes amid declining profits and lackluster performance at home. Li Ning is among many Chinese sportswear brands to have encountered obstacles when trying to expand to overseas markets.

Merck, Simcere launch JV

Merck & Co Inc and Simcere Pharmaceutical Group announced on Wednesday that their joint venture has officially been launched.

By using both companies' advantages in the fields of manufacturing, sales, and research and development, the joint venture aims to become an excellent homegrown pharmaceutical enterprise with a broad product line.

The venture will dedicate itself to improving the accessibility of high-quality drugs for Chinese patients, especially those in rural areas. Initially, the new company will concentrate on chronic diseases because of their growth in China.

Currently, over 260 million people are diagnosed with chronic disease, and 2 million people die from cardiovascular and cerebrovascular diseases each year in China.

Treat BRICS trade issues 'rationally'

Vice-Minister of Commerce Wang Chao has urged trade remedy investigators looking into the BRICS nations to "strengthen policy coordination and treat trade issues rationally and objectively".

Speaking at a seminar, he said: "Dialogue and consultation between governments and industries are preferred in addressing trade issues. We reject the abuse of trade remedy tools."

The seminar is the first time that the BRICS group - which involves China, Brazil, India, Russia and South Africa - has sat together to discuss trade remedy issues, which consist of anti-dumping, anti-subsidy and safeguard measures.

In the first half of the year, China was hit by 40 trade remedy investigations from 18 countries and regions.

Seventy percent originated in major developing countries such as Brazil and India, according to the Ministry of Commerce.

Hard Rock to open hotels in China

Hard Rock International, the global entertainment retail chain, plans to open its first batch of rock'n'roll-themed hotels in China in 2015 after reaching an agreement with local golf-resort operator Mission Hills.

The 280-room Hard Rock Hotel Shenzhen and 250-room Hard Rock Hotel Haikou will both feature Hard Rock's famed rock'n'roll design elements, as well as guest amenities inspired by its music roots.

Hamish Dodds, president and CEO of the company, said: "We couldn't ask for a better partner than Mission Hills to share Hard Rock Hotel's style and attitude with a Chinese population thirsting for new entertainment experiences."

Mission Hills has three luxury resorts in China that emphasize golf.

"Domestic brands have been faced with increasing challenges to penetrate markets in Europe and the United States where mainstream sportswear brands have established their presences for years," said Zhang Qing, an industry analyst.

China Daily-Agencies

(China Daily 09/13/2012 page14)