What's news

Growth set for further slowdown

Weak external demand and slack domestic investment could drive China's economic growth down to 7 percent next year from about 7.3 percent this year, the country's leading think tank warned on Dec 12.

The Chinese Academy of Social Sciences said that 7 percent would still represent "fast and stable" growth sufficient to accelerate structural reform and maintain a healthy labor market.

Consumer inflation may drop to 1.8 percent next year from about 2 percent in 2014, exacerbating deflationary pressure, it said.

Investment

County invitesChinese funds

A Kenyan county has called on Chinese investors to exploit opportunities that exist in infrastructure, agricultural processing and tourism.

A Laikipia County official, Lantano Nabaala, said investors should tap the full gains of the county's natural resources.

"Laikipia is rated as the fifth county in Kenya to invest in, and one of the best places to visit in the world with an oasis of opportunities."

The county, on the slopes of Mount Kenya, has good investment opportunities and incentives for joint ventures and sole entrepreneurship waiting to be tapped, he said.

Resources

CNOOC goes ahead With oil exploration

CNOOC Ltd, the third-largest oil producer in China, says it is still exploiting the $2 billion oilfield in Kingfisher, Uganda, although global oil prices have plunged recently.

A company spokesman told the Wall Street Journal that both the road construction to the oilfield and test work is proceeding smoothly and its proven reserves are about 635 million barrels. CNOOC will work closely with other parties to develop the oilfield, it said. CNOOC, Tullow Oil Plc of Britain and Total SA of France jointly own the oilfield. It is expected that the highest daily crude output will be 40,000 barrels, when the oilfield opens in 2018.

Auto

BAIC Motor reportedto have raised $1.4b

BAIC Motor Corp of Beijing, the Chinese maker of Senova and Wevan marques with Daimler AG as one of its shareholders, has raised $1.4 billion through an initial public offering on the Hong Kong stock exchange, Reuters quoted people familiar with the matter as saying.

The insiders said BAIC had issued 1.2 billion shares at HK$8.9 ($1.15) a share, with the offering price in the middle of the guide price. The company was expected to go public in Hong Kong on Dec 19. BAIC Motor has subscribed capital of $786 million from 10 cornerstone investors, which accounts for 55 percent of its total issuance. China Aerospace Investment Holdings and Beijing Enterprises Group are among those main investors.

Trade

Import and export taxes to be adjusted

China will adjust its import and export taxes from Jan 1 as part of a larger effort to foster economic growth, the Finance Ministry says.

To refine the mix of imports, China will levy provisional taxes at a rate even lower than that reserved for countries in the Most Favored Nation category, a low-rate status given to particularly valued trading partners.

Taxes will be reduced on imports of optical fiber-equipped communications devices, advanced manufacturing equipment and electric car parts.

On the commodities front, the ministry said it would reduce import taxes on ethylene, ferro-nickel and coal products, and import tariffs for natural rubber will be raised.

Export levy for coalremains unchanged

The country's coal export tax will remain unchanged at 10 percent next year, but officials say they will appropriately reduce tariffs for coal products, the Ministry of Finance said. Many in the sector had hoped China, the world's top producer and consumer of coal, would agree to an industry proposal to cut coal export taxes to 3 percent as part of broader efforts to help local miners.

Company

Court allows Xiaomito sell smartphones

An Indian court has partially lifted a sales ban on Xiaomi Corp, saying the world's third-largest smartphone vendor can now import devices as long as it uses chips from Qualcomm Inc.

A two-judge panel in Delhi High Court cleared the sales until another hearing on Jan 8, said Kapil Sibal, a lawyer representing Xiaomi. The decision comes after Xiaomi appealed against a ban imposed by a judge in the same court on importing and selling mobile devices in the company's biggest overseas market.

The Beijing company and Indian e-commerce partner Flipkart.com were blocked from making or selling devices that Ericsson said infringe its wireless-technology patents, according to court papers. Xiaomi suspended all sales in India "until further notice". Ericsson has said its lawsuit follows more than three years of attempts to negotiate licensing for patents with Xiaomi.

Tencent Holdings signsSony Music deal

Chinese Internet giant Tencent Holdings Ltd has struck the latest in a string of music distribution deals, this time with Sony Music Entertainment, as it teams up with labels to try to develop China's paid-for music market and curb piracy.

The partnership will give Tencent the right to distribute Sony Corp's music catalog online in China, including artists such as Daft Punk, Bob Dylan and Yo-Yo Ma. Tencent did not disclose financial terms of the deal.

The Shenzhen company will also promote Sony Music's performers on its online platforms, including the social network QQ. Tencent says QQ has more than 820 million monthly active users. Last month Tencent signed a similar music distribution partnership with Warner Music Group.

Accor signs deal withChina Lodging Group

French hotel operator Accor has announced a strategic alliance with China Lodging Group to create a major new player in the fast-growing Chinese domestic travel and hospitality market.

The deal will combine the French hotel operator's brands including Ibis with more than 2,000 existing establishments run by China Lodging's Huazhu Hotels, the companies said.

The partnership "will leverage the strengths of Accor's global brands with a leading player in Chinese hospitality", said Sebastien Bazin, Accor's chairman and chief executive.

Huazhu aims to open 350 to 400 new hotels under Accor brands in the next five years, the companies said. Under the deal, Accor would buy a 10 percent stake in Huazhu and have a seat on its board, in return for which the company will become Accor's main franchisee in China.

Industry

Express delivery firmsenjoy business upsurge

Revenue for Chinese express delivery businesses was 182.07 billion yuan ($30 billion) in the first 11 months this year, up 41.6 percent year-on-year, according to figures from the State Post Bureau.

A total of 12.32 billion deliveries were made in the period, up 51.8 percent year-on-year.

Wearables market setfor more growth

Turnover in the wearable devices market in China will exceed 2 billion yuan ($323 million) this year, a recent forum was told, the Xinhua-run cnstock.com reported.

The market size was put at 900 million yuan last year, 80 percent higher than the year before. An official with Shanghai's science and technology authority said wearable devices are expected to become the second-most popular terminal following smartphones and become another important portal to mobile Internet.

China Daily-Agencies

(China Daily Africa Weekly 12/19/2014 page18)