IN BRIEF (Page 18)

Nation to sell 1 million tons of cotton reserves

China will auction an initial 1 million metric tons of cotton from its bulging State stockpiles over the next two months and will also consider purchasing when the harvest starts later this year, the country's top economic planner said on June 30.

While the State sale will add to local cotton supplies, purchases during the harvest in September will keep a floor under domestic prices, helping the world's top consumer of the fiber gradually reduce stocks without depressing the market.

The aim is "to release and then buy in, sell out more and buy in less, in order to use up State reserve stocks", the National Development and Reform Commission said.

S. Africa industry needs Chinese investment

South Africa's current reindustrialization programs need investment from countries like China as the international situation around manufacturing has changed completely, said Henk Langenhoven, chief economist at the Steel and Engineering Industries Federation of South Africa.

"In terms of the biggest countries that are exporting to South Africa, China was not in that list 10 years ago. However, in the past five years China has dominated the list of exporters to South Africa," said Langenhoven.

Official data showed that two-way trade volume between China and Africa exceeded $220 billion for the first time in 2014, and China has been Africa's largest trade partner for the past five years.

Stricter controls set for steel producers

China will close any steel companies failing to meet environmental protection standards during the 13th Five-Year Plan period (2016-20), experts were told at a forum on energy saving by the steel industry on June 29. In the future, the size of domestic steel enterprises will be strictly controlled and the industry will enter a period of slower development in line with the falling use of coal.

Egypt's market offers opportunities to Chinese

Egypt offers both opportunities and challenges for Chinese investors, as its strategic geographic location makes the country a marketplace of great potential and influence in the Middle East, said Chen Xiaohua, chairman of China Gezhouba Group CorporationInternational Co Ltd.

Egypt is going to see a rising number of manufacturing and infrastructure projects, and that has provided huge opportunities for Chinese companies, said the chairman of the Chinese corporation.

"That is why we are going to make the newly opened CGGC office in Cairo our main regional headquarters in the Arab world and Africa," Chen said.

In his meeting with Egyptian Prime Minister Ibrahim Mahlab on June 28, Chen discussed projects soon to be launched in the North African nation, including a 1,330-megawatt power station in the Red Sea's Hamraween village, the maintenance project on a main cross-province highway, and sanitation projects in Minufiya and Gharbiya provinces.

Caixin to take over PMI surveys from HSBC

Caixin Media Co Ltd said on June 30 that it would take over sponsorship of the closely watched China Purchasing Managers Index now that HSBC plc has ended its tie-up with financial information firm Markit Ltd. Chinese manufacturing and services PMI surveys will be released under the new partnership from August, Caixin said in a statement.

Registration simplified for new businesses

The State Council issued a circular on June 29 vowing to accelerate the promotion of a streamlined registration process for new businesses. China plans to replace its current registration system nationwide before the end of the year, according to the document published on the central government's website.

Chinese mainland has largest broadband

China now has the world's largest broadband telecommunication network, said Miao Wei, minister of Industry and Information Technology.

By the end of March, there were approximately 930,000 kilometers of long distance fiber-optic cables installed, and the number of 4G network users exceeded 160 million, Miao said. Some 46.4 percent of all broadband users in the country now enjoy speeds of eight megabits per second, a 5.6-fold increase on the first quarter of 2014.

Amazon extends small business loan program

Amazon.com Inc will launch its business loan program for small sellers later this year in eight more countries including China, where credit is becoming a key factor in competing for new vendors and grabbing market share. The e-retail giant has previously offered the service only in the United States and Japan.

May services deficit widens to $18.3 billion

The nation's trade deficit in services widened to $18.3 billion in May, as Chinese tourists continued to spend more abroad than foreigners visiting the country, the foreign exchange regulator said on June 30. The deficit was led by a $16.2 billion gap in spending between Chinese and foreign tourists, according to data from the State Administration of Foreign Exchange. The country posted a $17.3 billion deficit on trade in services in April.

CSRC vets first crude oil futures contract

China's securities watchdog said it planned to complete preparatory work for the country's first crude oil futures contract in the next three months.

Zhang Xiaojun, a spokesman for the China Securities Regulatory Commission, said it would look into crude oil industry supporting policies and examine and approve regulations and trading rules for the Shanghai International Energy Exchange Corp.

Separately, the commission also formally released new regulatory rules on overseas traders and brokerage companies participating in particular types of futures trading, which would take effect starting August 1.

300 chamber chiefs expected in Beijing

Organizers of a global chambers of commerce and industry convention, expected to be held in Beijing on July 6-7, say more than 300 domestic and overseas chamber leaders from 79 countries and regions are expected. Zhuang Rongwen, vice-chairman of the Overseas Chinese Affairs Office of the State Council, said the event would include meetings attended by senior Chinese officials.

First draft of oil, gas restructuring by August

The National Development and Reform Commission has been working on a general plan for oil and gas industry restructuring since April and will publish a first draft in July or August, Shanghai Securities News reported on June 30, quoting sources close to the matter. In early June, Nur Bekri, the head of the National Energy Administration, said the restructuring of China's three oil giants, should be accelerated. Their opening-up is expected to be at the core of the oil and gas structural reform, according to energy expert Wu Jiandong.

Baidu to invest $3.23b for business expansion

Online search giant Baidu Inc is investing 20 billion yuan ($3.23 billion) into boosting its online-to-offline business, including its group-buying business Nuomi, within three years. Baidu's CEO Robin Li said that as an research engine, Baidu used to connect people with information. "With the booming development of online to offline business, we are determined to make the transition to connect people with services."

(China Daily Africa Weekly 07/03/2015 page18)