U.S. Commercial Service - American Embassy, Beijing
Vol. 2 No. 130
The China Commercial Brief is a biweekly publication including summaries about developments in China's various commercial sectors, tips on doing business in China, and U.S. Embassy news. This publication is free of charge: please forward it to your colleagues and friends who are interested in China.
To subscribe to the China Commercial Brief,
send a blank email to subscribe-china-commercial-brief@list.xianzai.com .
For additional CS China news and events including past issues of the China Commercial Brief, visit our News & Events Archives.
Editor: David Snodgrass
Contributing Specialists: CS Shanghai, Wan Xiaolei, Zhao Peining, Xie Pingping, Sun Shuyu
News Briefs
In the interests of providing news from all over China, our four China branch offices - Chengdu, Guangzhou, Shanghai and Shenyang - submit summaries of commercial articles from their local press to the CCB on a rotating schedule, in addition to the five article summaries provided by CS Beijing.
1. When West Meets East (CS Shanghai)
2. China's Government Restructuring Plan Adopted
3. Machine Tool & Tool Market in China –Requirements of Computer Numerically Controlled (CNC) Functional Module to Increase Sharply
4. Western Fast Food Sales Triple Chinese Fast Food Sales in Beijing
5. State Food and Drug Administration Established
When West Meets East
The Chinese Government has had its "Western China Development" program underway for three years now. It has made considerable progress with regards to infrastructure, environmental protection, education, and living standards. From 2000 to 2002, the GDP of the western region increased 9% annually.
During the past three years, almost one hundred Fortune 500 companies have either invested or set up rep offices in the region. The total amount of investment is now $12 billion. There are more than 9,000 projects.
A certain period of time will still be needed to reduce the economic differences between West and East. But with improvements in the investment environment and with preferential policies issued by the Central Government, the distance between West and East will gradually be lessened.
(Source: Jiefang Daily,03/09/2003 - Translated by CS Shanghai)
2. China's Government Restructuring Plan Adopted
The move to put importing, exporting and internal trade under the administration of a single ministry, the proposed Ministry of Commerce, will enhance efficiency for both businesses and administrators.
The new Ministry of Commerce will combine MOFTEC with departments in charge of domestic and foreign trade in the State Development Planning Commission (SDPC) and the State Economic and Trade Commission (SETC).
With the establishment of the Ministry of Commerce, companies involved in trade will no longer have to run between different government branches, as they did under the old system.
The 10th National People's Congress (NPC), the top legislature of China, adopted Monday a plan submitted by the State Council for streamlining government departments.
According to the plan, adopted by a large majority vote at the third plenary meeting of the on-going first session of the 10th NPC, one ministerial-level department has been struck from the list to reduce the total number from 29 to 28.
The State Development Planning Commission is renamed the State Development and Reform Commission, which is put in charge of the country's economic restructuring, while the State Family Planning Commission is renamed the State Population and Family Planning Commission, which takes the responsibility of beefing up research in population development.
Under the government restructuring plan, the State Council will form a commission for the management of state property, responsible for the reform and reorganization of state-owned enterprises, and a commission to regulate the banking industry, and establish a state food and drug administration on the basis of the State Drug Administration to reinforce supervision over the safety of food, health products and cosmetics. The State Administration of Work Safety will be upgraded to oversee industrial production and coal mining.
In the last round of government streamlining, the number of ministry-level departments under the State Council was cut to 29 from 40. Before that, China attempted to streamline the government in 1982, 1988 and 1993.
The following is an unofficial translation of the new organizational setup of the State Council, which was adopted Monday at the third plenary meeting of the on-going first session of the 10th National People's Congress (NPC), the top legislature of China:
1. Ministry of Foreign Affairs;
2. Ministry of National Defense;
3. State Development and Reform Commission;
4. Ministry of Education;
5. Ministry of Science and Technology;
6. Commission of Science, Technology and Industry for National Defense;
7. State Commission for Nationalities Affairs;
8. Ministry of Public Security;
9. Ministry of State Security;
10. Ministry of Supervision;
11. Ministry of Civil Affairs;
12. Ministry of Justice;
13. Ministry of Finance;
14. Ministry of Personnel;
15. Ministry of Labor and Social Security;
16. Ministry of Land and Resources;
17. Ministry of Construction;
18. Ministry of Railways;
19. Ministry of Communications;
20. Ministry of Information Industry;
21. Ministry of Water Resources;
22. Ministry of Agriculture;
23. Ministry of Commerce;
24. Ministry of Culture;
25. Ministry of Health;
26. State Commission for Population and Family Planning;
27. People's Bank of China;
28 Audit Office.
(Source: China Business Times, 03/07/2003 and www.english.peopledaily.com.cn - Translated by Wan Xiaolei)
3. Machine Tool & Tool Market in China –Requirements of Computer Numerically Controlled (CNC) Functional Module to Increase Sharply
In 2003, the requirements of auto, space-flight, aviation, shipbuilding, mould manufacturing, IT products as well as environmental protection industries will be the main driving force of the machine tool and tool market in China. Estimates show that the consumption of machine tools in China will increase to $6 billion this year, with imports accounting for $3.5 billion.
The functional parts of CNC machine tools affect market competition of CNC machine tools made in China. Especially high speed machining equipment, such as machining centers, milling machines and grinding machines etc., which have adopted the importing functional module. Therefore high quality electric spindles; high-speed ball screws; CNC tool posts; pick-up arms of tool magazines and guide covers for high speed machines; tools and measuring equipment possess great market potential in China.
(Source: China Machine Tool News, 03/05/2003 - Translated by Zhao Peining)
4. Western Fast Food Sales Triple Chinese Fast Food Sales in Beijing
Compared to Chinese fast food enterprises, western fast food enterprises are less, operation space is smaller, and employee numbers are less, but western fast food sales totals are triple that of Chinese fast food enterprises.
According to research conducted by the Beijing Food and Beverage Industry, there are 263 western fast food enterprises in Beijing, occupying 87,000 square meters in Beijing, and are quickly increasing in popularity among busy Beijing working class. Although the number of western fast food enterprises makes up 12.9% of Beijing’s total fast food enterprises, their total sales equal 29% of the total fast food market.
Western fast food has still to reach its full development potential in Beijing.
(Source: Beijing Business Daliy, 03/12/2003 - Translated by Xie Pingping)
5. State Food and Drug Administration Established
To strengthen the supervision and management system for food safety and safe production, the State Food and Drug Administration (SDFA) will be established under the State Council on the basis of the former State Drug Administration (SDA). This was one of the structural reform plans of the State Council submitted for review to the First Plenary Session of China's 10th National People's Congress. The SFDA is to assume responsibility for the supervision and coordination of safety management of food, dietary supplements, and cosmetics in addition to its former responsibility of drug and medical devices.
(Source: China Business Times, 03/07/2003 - Translated by Sun Shuyu)
Consulate News: Shanghai
In keeping with our goal of making the CCB a more integrated publication, our four China branch offices - Chengdu, Guangzhou, Shanghai and Shenyang - submit consulate news to the CCB on a rotating schedule. This week, we are pleased to feature a contribution from CS Shanghai:
For the Commercial Service in Shanghai, the weeks since Spring Festival have been a colorful mix of trade missions, single company events, business visitors, briefings for senior management groups, plant visits, provincial outreach, investment pitches from the Chinese, official U.S.-China trade talks, video and tele conferences for distant exporters targeting China, and regulatory trouble-shooting.
CS Shanghai staff has advised more American financial institutions and watchdog agencies - curious about China’s tentative reforms - than ever before (six in a six-week period). The PCO has counseled, advocated for, or briefed at least 14 Fortune 500 corporations in the last month. Industries ranged from waste and water to specialty chemicals to process controls to advanced materials. Four SMEs in biotech, avionics, online finance, and boutique coffee franchising held single company promotions or signing ceremonies at the U.S. Commercial Center. The cities of Denver and Anchorage met with the Chinese to develop their airports as international hubs. West Virginia brought a delegation of wood industry companies, and the U.S. semiconductor industry brought a group of microelectronics firms. Shanghai staff conducted a Breakfast with China video-teleconference for Los Angeles companies, highlighting best prospect opportunities in East China.
In export licensing news, a BIS team came to Shanghai to learn more about chip production. On the perennial topic of IPR infringement, CS Shanghai arranged or participated in four IPR forums with U.S. industry and the Chinese. The latest market entry hurdle: The new CCC Mark quality certification required by the Chinese Government. CS Shanghai has been helping U.S. firms race to get their technology certified before the May 1 deadline. If your product is on the list, give them a call.
For more information on CS Shanghai and the Shanghai consular region, visit our website at http://www.buyusa.gov/china/en/shanghai.html
DISCLAIMER: CS China does not guarantee the veracity of the original sources of our news summaries. While we do our best to report accurate and timely articles and news sources, you should always check the source for further information.
The China Commercial Brief is a free newsletter published by the U.S. Embassy- Beijing.
****************************************************
INTERNATIONAL COPYRIGHT, U.S. COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2002. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.
Return to Current News & Events or visit our News & Events Archive.