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| China's overall foreign trade volume tops US $1 trillion in first eight months of the year. |
Foreign Trade Exceeds US $1 Trillion
Chinese customs officials say the country's total foreign trade volume exceeded US $1.1 trillion in the first eight months of this year. The figure represents an increase of 23.9 percent over the same period last year. From January to August, bilateral trade volumes with China's top four trade partners -- the EU, the US, Japan and the Association of Southeast Asian Nations (ASEAN) -- all broke through the US $100 billion mark. Statistics showed that the EU remains China's biggest trading partner, with a bilateral trade volume of US $168.96 billion in the first eight months of the year. With bilateral trade amounting to US $166.59, the US is China's second largest trading partner. Customs officials say that foreign trade remains concentrated around China's eastern coastal areas, with the import-export volumes in Guangdong, Jiangsu, Shanghai and Beijing all surpassing US $100 billion from January to August of 2006.
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| China Construction Bank acquires Bank of America (Asia). |
China Construction Bank Acquires Bank of America (Asia)
China Construction Bank (CCB) has entered into an agreement with the Bank of America (BoA) to buy a 100 percent stake in the Bank of America (Asia) Ltd., BoA's wholly owned Hong Kong-based subsidiary. When the acquisition is completed, CCB's business scope in the Special Administrative Region will be more than doubled, and it will see a significant increase in its commercial loans business. Under its WTO commitments, China will throw its banking sector open to foreign competition from December 11, 2006. Industry insiders reckon the acquisition indicates CCB's strong intentions to further expand its retail banking business and to strengthen its presence overseas.
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| A recent real estate fair in Beijing drew huge crowds. |
China Popular among Real Estate Investors
According to a real estate industry report published in the United States, the Chinese mainland is one of the real estate world's most lucrative investment opportunities. Investors in 19 cities of the Asia-Pacific Region were surveyed for the report. Respondents were asked to describe local purchasing, holding and selling conditions in their respective cities. Those in Hong Kong said the real estate market was ripening, so most were holding onto their properties for the time being. Meanwhile, those in the Chinese mainland said that now was the time to buy. Particularly optimistic were those in Shanghai. Respondents there described the real estate market as having “vigorous potential.”
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| China becomes the world's third largest grain donor. |
China Changes from a Grain Recipient to Donor
A report released by the World Food Program (WFP) says China became the world's third largest grain donor even before it has stopped receiving aid from the WFP. In 2005, China donated a total of 577,000 tons of grain, ranking third after the US and the EU. The report says that the United Nations ceased providing China with food aid as of January 2006, bringing to an end the 26 years of international food assistance to China. The report cites the Chinese government's success in lifting local people out of poverty and the country's rise as a global economic power as the reasons behind the UN's decision.
World Keeps an Eye on Northeast China
The rejuvenation of China's old industrial bases in the northeast of the country has sparked off a surge in overseas investment in the region. In the first seven months of this year, 228 foreign enterprises went into operation in the region, an increase of 20 percent over the same period in 2005. The chief Chinese representative of Toyota Motor Corporation says foreign investors are lured by the region's rich natural resources, talented labor base, and excellent geographical location. China's Ministry of Commerce is revising the encouraged industrial investment catelogue, with the aim of accelerating international cooperation in manufacturing, petrochemicals, the auto industry, transportation and agricultural product processing. Meanwhile, the Ministry of Commerce will continue to support foreign participation in the reform of state-owned enterprises, and encourage local small and medium-sized enterprises to seek international cooperation in order to help them become more competitive in the global market.
China Remains No. 1 FDI Destination
China is expected to remain the most attractive destination for Foreign Direct Investment (FDI) until 2010. And FDI in China is expected to climb from US $79.1 billion last year to US $86.5 billion in 2006. Moreover, the annual amount of overseas capital flowing into China is expected to top US $100 billion long before 2010. And by that year, China is expected to have accumulated foreign exchange reserves worth US $2 trillion.
However, as labor costs in China continue to rise, more and more manufacturers are in the next decade likely to target cheaper nations like ASEAN member states. The executive director of Columbian International Investment Program Karl P. Sauvant believes that drawing foreign capital is not a mortal battle, and he predicts that the foreign capital gap between China and the ASEAN member states will be gradually reduced within five years.
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