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Trade

Ebola fears cast shadow over Canton Fair

The Ebola epidemic in West Africa may adversely affect the China Import and Export Fair, as the number of foreign buyers at the upcoming event is expected to fall, organizers said.

"The Ebola and domestic dengue-fever epidemics will surely affect the fair," said Liu Jianjun, the fair's spokesman. "The number of foreign buyers, especially regular buyers from Africa, will be reduced."

The biannual fair, also known as the Canton Fair, is China's largest trade event and will draw nearly 200,000 international buyers from 200 countries and regions, as well as 300,000 domestic and overseas exhibitors.

The fairs average more than 15,000 buyers from Africa seeking business opportunities in Guangzhou, the capital of Guangdong province, organizers said.

Liu said the organizers had not issued any measures to prevent African buyers from visiting the fair.

Sugar import quota unchanged

The Ministry of Commerce on Oct 15 set the 2015 import quota for sugar at 1.95 million tons, remaining unchanged from the past decade. China has kept the same sugar import quota according to World Trade Organization rules since 2004, even after becoming the world's major sugar consumer in recent years. According to the ministry, 70 percent of the quota will be assigned to state-owned traders. Imports by companies with quota licenses are subject to a favorable tariff of 15 percent, while importers without a quota license will face a minimum duty of 50 percent.

Steel exports surge as demand wanes

Steel exports hit a record high last month as mills in the world's leading producer country turned to overseas markets to make up for falling domestic demand. Exports of 8.52 million metric tons were up 73 percent from a year earlier and 9.8 percent from August, according to the customs authorities. Outbound shipments in the first nine months of 2014 rose to 65.3 million tons, up 39 percent on the year.

Prices in China, which produces almost half of the world's steel, fell more than 15 percent this year due to overcapacity and falling demand at home.

Transport

Uganda seeks funds for rail expansion

Uganda will begin a fundraising drive in China in the first quarter of next year for a standard-gauge railway network in East Africa, the Finance Ministry said.

The investor meetings will follow a presentation in December of a report by the Africa50 Infrastructure Fund, which was contracted by the government to draw up a financial plan for the project, Patrick Ocailap, deputy secretary to the Ugandan Treasury, said on Oct 14. Africa50, a unit of the African Development Bank, helps find private investors to accelerate infrastructure projects.

Auto

Zambia denies banning Chinese buses

The Zambian government has denied banning the usage of Higer buses being supplied by a Chinese firm on its roads, a top official said on Oct 13.

Some local media reported that the government had banned Higer buses because of their alleged excessive weight.

But Deputy Minister of Transport, Works, Supply and Communications Panji Kaunda said the government had no intentions of banning the use of Higer buses, adding that the impression created through some local media were erroneous.

"This picture painted is not correct. The government has not and has no intentions of banning any buses in this country," he said in a statement.

The government has since apologized to the Chinese firm that supplies the buses for the inconvenience the article might have caused, adding that steps were being taken to remedy the situation.

Company

Sweet rewards for African sugar plant

A Chinese sugar processing plant in Madagascar has played a key role in the country's development, according to Rolland Ravatomanga, the country's minister of agriculture said.

"I congratulate the China State Development and Investment Corp Complant Group for its commitment in supporting Madagascar's development."

Zhou Jianping, the general administrator of the Chinese sugar plant Sucoma said: "Sucoma is involved in urban development and its channel dredging serves not only sugar growers but also farmers who cultivate rice and other crops."

Anbang eying Woori Bank stake

Chinese Anbang Insurance, the new owner of the iconic Waldorf Astoria New York, is in talks with South Korea's Woori Bank concerning its controlling stake, Chinese media reported. Anbang Insurance is looking to take over more than 30 percent of Woori Bank's stake, Chinese media quoted Korea Economic Daily as saying.

Both Anbang Insurance and Woori Bank were not available for comment. The South Korea government said earlier this year that it hopes to sell its 57 percent stake in Woori Bank by the first half of 2015.

Resources

Coal tariffs introduced amid falling prices

China, the world's biggest coal consumer and producer, reintroduced import tariffs on the fuel as domestic mining companies face challenging times. The Finance Ministry imposed a levy of 6 percent on coal, including 3 percent on anthracite and coking coal, on Oct 15, according to a statement published on its website.

Similar tariffs were suspended in 2007, while a tax on brown (low quality) coal was resumed in August 2013.

Variable coal tax to be based on sales

A resource tax on coal, based on sales rather than production, will be introduced from Dec 1. The rate will be between 2 and 10 percent, tax authorities said on Oct 11. The Ministry of Finance and the State Administration of Taxation said in a joint statement that the tax rate will be decided by provincial governments.

In addition, "resource compensation fees" will be scrapped, also from Dec 1, to reduce the financial burden on domestic coal miners amid falling prices.

Investment

Foreign investment moves gather speed

China has outlined plans to allow citizens to invest in overseas stocks and property as well as let the nation's companies sell yuan-denominated shares abroad, boosting efforts to internationalize the currency. Citizens will be able to buy equities and real estate via a Qualified Domestic Retail Investor program, Wang Dan, a deputy director-general at the central bank, said at a conference in Beijing.

Efforts are also underway to give citizens access to yuan capital markets in Singapore and London, she said, though no timeframe was given.

Entertainment

Universal theme park set for Beijing

The government has approved a Universal Studios theme park in Beijing. The overall investment in the Universal Beijing theme park will be more than 20 billion yuan ($3.2 billion, 2.57 billion euros). It will be jointly owned by Beijing Shouhuan Cultural Tourism Investment Co Ltd, a consortium of four state-owned companies, and Universal Parks & Resorts, a business unit of Comcast NBC Universal.

The park and support facilities will occupy a 120-hectare site located northwest of the intersection of the Beijing-Harbin Expressway and the East Sixth Ring Road in Tongzhou.

China Daily - Agencies

(China Daily Africa Weekly 10/17/2014 page18)