What's news

FTA talks reach across the Gulf

China is to accelerate the negotiation of a free trade agreement with the Gulf Cooperation Council in 2015, and launch FTA talks with Israel.

Zhang Shaogang, director-general of the department of international trade and economic affairs at the Ministry of Commerce, said the expected FTA with members of the GCC can help China buy energy products from the region at lower prices, and pave the way for Chinese companies to explore other markets in the Middle East.

The GCC is a political and economic union of six Arab states that border the Persian Gulf - Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates - some of which are considered among the world's top fossil fuel-exporting nations.

Policy

Reforms loosen Shanghai free trade zone

China has expanded its free trade zone in Shanghai and established three new zones with eased investment rules in the latest of its economic reforms.

The new zones and expansion of the Shanghai pilot zone were authorized during the bimonthly meeting of the National People's Congress on Dec 28.

The move ends the need for government approvals as a precondition for overseas companies setting up ventures or changing their purpose of business in these zones. Instead, the companies only need to file a report with authorities, according to the meeting.

The move will take effect in March and will last for three years, after which an official assessment will decide whether the policy should continue.

Auto

GAC Motor plans overseas exports

GAC Motor Co Ltd, a Guangzhou Automobile Group Co Ltd division, is moving to export more of its brand of vehicles and opening overseas manufacturing facilities, a top company executive said.

"Vehicles produced by Chinese companies have long been stigmatized as being low-quality, low-priced models due to manufacturers' relatively low levels of innovation and technology," said GAC General Manager Wu Song.

The Guangzhou-based company will export more domestic vehicles in the years ahead.

Finance

UnionPay expands overseas to serve tourists

UnionPay International announced plans to expand its overseas presence on Dec 26, with company's services already available in 148 countries and regions outside the Chinese mainland.

The company has a heavy presence in the Republic of Korea since entering the market in 2005, with more than 10 million UnionPay cards issued in cooperation with ROK banks.

Energy

Govt: merger of energy firms will clear smog

The Chinese government said on Dec 29 that it had merged Beijing Energy Investment Holding Co with the Jingmei Group into a new 200 billion yuan ($32 billion) business to improve efficiency in the energy sector and reduce pollution.

Lin Fusheng, head of Beijing's Assets Supervision and Administration Commission, says the merger will also improve the supply of electricity.

The new company, to be called Beijing Energy Group Co, will manage coal-fired power plants, renewable energy projects, the supply of heating and the development of coal mines.

Entertainment

Developer to build industrial park

China Fortune Land Development Co Ltd, a Shanghai-listed company, recently signed a deal with two Hollywood companies to establish a new media industrial park to tap into the US' film and online video markets.

Hu Zhenyu, vice-president of CFLD, said: "Echoing the rapid development in China's entertainment industry in recent years, attention has been drawn to better post-production and special effects."

Hoyts cinema chain sold to Chinese billionaire

A Chinese billionaire who has strong ties to Chinese conglomerate Dalian Wanda Group has acquired the Hoyts Group, Australia's second-largest cinema operator.

Officials from Hoyts, which was previously owned by Australian private equity firm Pacific Equity Partners, said Sun Xishuang, who is ranked No 149 on Forbes' list of the richest Chinese, bought the group through his British Virgin Islands-based company, ID Leisure Ventures.

Financial terms of the sale were not disclosed, but Australian media estimate the deal to be worth up to $731 million.

The entrepreneur is also the second-largest shareholder in Dalian Wanda Group with a 6.3 percent stake. He also has a 4.2 percent interest in its subsidiary, Wanda Cinemas.

Retail

Wumei to acquire major stake in B&Q China

Kingfisher, the United Kingdom-based home improvements retailer, agreed to sell a 70 percent stake in its loss-making B&Q China business to Wumei Holdings Inc for 140 million pounds ($219 million), a move that is expected to boost Wumei's retail presence.

The agreement follows Kingfisher's March announcement of its plans to look for a partner to help develop B&Q China, which is made up of 39 stores and employs 3,000.

The transaction will enable Kingfisher to focus on its main businesses in Europe, including the UK market leader B&Q and Castorama in France. Kingfisher is Europe's biggest home improvement retailer.

IT

Sales in information sector hits record high

China's information sector reached a record high in sales in 2014 and Sun Wei, a top-level official at the National Development and Reform Commission, said the sector will play an increasingly important role in the country's overall economy over the next 12 months.

Sun said the consumption of information including sales of electronic terminal devices and information services could reach as much as 2.8 trillion yuan ($434 billion) in sales in 2014, which would represent a 27 percent rise from last year's 2.2 trillion yuan.

"Its development is now growing at three times the rate of GDP," Sun said.

Aviation

New Beijing airport breaks ground

Construction of Beijing's new airport got underway on Dec 26. The project will cost 79.98 billion yuan ($13.11 billion) and take about five years to complete.

The airport is designed to handle 72 million passengers, 2 million metric tons of cargo and mail, and 620,000 flights by 2025, according to the National Development and Reform Commission, which approved the construction plan on Dec 15.

It is expected to meet Beijing's rising demand for air transportation and help balance development between the capital's southern and northern areas, it said. The new airport will be built in southern Beijing's Daxing district, which borders Hebei province.

E-Commerce

European brands clamor to join Tmall Global

More than 100 overseas brands, including Europe's leading supermarkets, are moving to establish online stores on Tmall Global, the online retail site owned by Chinese e-commerce giant Alibaba Group Holding Ltd.

Tmall Global has seen sales soar tenfold since its launch by the Hangzhou-based Alibaba in February.

Alibaba revealed on Dec 29 that around 5,400 foreign brands from 25 countries have already set up online stores on the platform.

Sales by Costco Wholesale Corp have been particularly strong, said Wu Qian, head of Alibaba's business-to-customer division.

China Daily-Agencies

(China Daily Africa Weekly 01/02/2015 page18)