Business in Brief

European Iron Giants Enter Chinese Market

In the next two years, ThyssenKrupp, the second largest iron and steel manufacturer in Europe,will invest 120 million Euros in supplying special metals to the rapidly developing Chinese auto industry. It plans to increase its volume of iron and steel sales to China ten-fold, to reach a level of 800 million Euros in three years. French-based Arcelor, the largest iron and steel producer in the world is lso planning to build a new iron and steel plant in Shanghai, along with the Baosteel Group Corporation and a Japanese company, a This is the first approach Arcelor has made towards the Chinese iron and steel market.

New Regulations on Pharmaceutical Imports

From January 1, 2004, drugs produced overseas may be imported via 18 Chinese city ports of entry only, including Beijing, Shanghai and Tianjin. Pharmaceuticals of first import and biological products regulated by the State Food and Drug Administration must enter China through Beijing, Shanghai or Guangzhou only. According to the new rule, the importing organization must complete an imported drugs declaration and inspection form to be lodged with the local drug administration. Drugs may not enter China through any port other than the 18 designated.

China's Power Consumption Highest Ever in 2003

Power bureau workers examine and repair power lines.

Chinese power consumption increased by some 15 percent in 2003, reaching a level of 1,844.4 billion KWH. In early 2003 newly built power capacity installations failed to meet rapidly growing power consumption demands, resulting in power shortages in certain regions that by the third quarter of the year became widespread. In the third quarter of 2003, 19 Chinese municipalities, provinces and autonomous regions were obliged to make power cuts in order to curb consumption. It is estimated that power consumption will continue to grow in 2004 to a level of over 2000 billion KWH.

Tetra Pak Sued in China

Chinese companies recently reported Tetra Pak to their trade association for dominating China's 5-billion-yuan milk carton packaging market. They complain that the Swedish firm Tetra Pak won the market through tying sales of the packaging materials to its carton-filling machinery systems. According to reports, Tetra Pak was fined 75 million Euros by the European court in 1991 for monopolization, tied sales and inhibiting proper competition.

China Heads Volkswagen's Global Sales

Volkswagen's global sales volume in the first three quarters of 2003 decreased by 1.2 percent over the same period in 2002, but its sales in China increased by 32.9 percent to a level of 490,279 vehicles. Analysts believe that China is now Volkswagen's largest consumer. According to Volkswagen, China accounted for over 80 percent of its revenue, and in the first half of 2003, China contributed 1.3 Euros to every 1.54 Euros of its per share profits. Volkswagen cars are seen in most Chinese city streets, and outnumber those in Germany.

China Soon to Become World Second Largest Petroleum Consumer

China's petroleum consumption increases as more cars enter Chinese households.

The International Energy Agency estimates that China's petroleum consumption increase in 2003 and 2004 will be equivalent to one third of that of the whole world, and that China will soon take over Japan's place as the second largest petroleum consumer. It is reported that by November 2003, China had imported more than 70 million tons of crude oil, a 3 million ton increase over 2002, and that its petroleum imports will continue to increase. It is expected that by 2010 China's crude oil consumption will have reached 300 to 320 million tons.

Clinton Invited to Promote Chinese Company's Image

The Wenzhou based Fapai Garment Enterprise Company has hopes that former American President Bill Clinton will agree to endorse its product. In November 2003, Peng Xing, chairman of the board of directors of Fapai, was invited to a lunch with Clinton and others, at which Peng presented to the former president a suit, tie, shirt and pair of shoes. Peng Xing said that his company has offered the former American President US $2 million to promote their products, but has yet to receive his response. Rumor has it that Clinton will go to Wenzhou sometime in 2004 to visit Fapai.