U.S. Commercial Service - American Embassy, Beijing
Vol. 2 No. 159
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Editor: Matthew Gettman
Contributors: CS Guangzhou,Xi Xianmin, Zhao Peining, Xie Pingping, Peng Aiqun, Wan Xiaolei
1. Guangzhou to Invest USD 200 Million (RMB 1.65 billion) to Build the Asian Games Village
2. China's IT Market to Continue Strong Growth in the Next Five Years
3. China Machine Tool Market
4. Beijing will carry forward the market access regulations on water-saving utensils
5. Beijing Mayor Wang Qishan Reconfirms the Promise Made to Foreign Banks
6. Hot Chinese Chemical Market
1. Guangzhou to Invest USD 200 Million (RMB 1.65 billion) to Build the Asian Games Village
In order to become the host city for the 2010 Asian Games, Guangzhou is reportedly going to invest nearly USD 200 million (RMB 1.65 billion) to build the Asian Games village with a total area of 120 hectares. In total to support the Games, 12 major construction projects are to be built with a total investment of nearly USD 500 million (RMB 4.13 billion), most of which is expected to come from non-government sources.
According to Guangzhou Municipal Sports Bureau, the 12 projects include Cycling Stadium at Guangzhou Extreme Sports Base, Nansha Gymnasium, Baiyun Gymnasium, Conghua Gymnasium, Liwan New Gymnasium, Guangzhou Weilun Sports Academy Gymnasium, Guangzhou Equitation Course, Guangdong Olympic Sports Center Gymnasium, Guangdong Olympic Sports Center Natatorium, Guangdong Olympic Sports Center Tennis Court, Guangzhou Asian Games Village, Asian Games Media Center (including TV Transmission Center and Journalists Village). If Guangzhou is awarded the Asian Games, those projects would be up for public tenders. All qualified companies from home and abroad would be able to bid on the projects. Should the bidding effort fail to produce qualified private ownership, the Asian Games Village and the Media Center would not be built, but the other 10 projects would be built in phases.
The design and construction of Guangzhou Asian Games Village are to adopt environmentally- friendly materials and use natural ventilation and lighting. Renewable energies such as solar and wind would be used as much as possible. Drinkable water would be up to international standards. Sewage water would be treated 100 percent with biochemical technology. Environmental organizations well recognized in the world would be invited to participate in and supervise the overall process of building Asian Games Village from design to on-site construction. In addition, the Asian Games Village would be built as an advanced informationalized community supported by broadband network information service systems.
Guangzhou also has plans to invest USD 125 million (RMB 1.03 billion) before the 2010 Asian Games to upgrade existing medical and clinic facilities with a total space of 190,000 square meters. USD 270 million (RMB 2.23 billion) would be used to build and relocate disease control centers, first-aid centers and large hospitals covering 410,000 square meters. Another USD 12 million (RMB 99 million) would be used to purchase 100 new ambulances and related equipment inside the vehicles. These investment plans are in line with Guangzhou’s public health planning and would not be affected whether Guangzhou wins the hosting right or not.
Apart from the Asian Games Village project, all other residential projects would rely on private investment. Investors and owners of those residential projects would be able to decide the after-Games usage.
(Source: Private Economy News, 03/24/2004 - Edited by FCS Guangzhou)
2. China's IT Market to Continue Strong Growth in the Next Five Years
According to China Computer World Research (CCW) Research, China's 2003 IT market size was USD 30.5 billion (RMB 252.08 billion), up 11% over the previous year. CCW Research predicts that the market size will grow by 15% to reach USD 35.1 billion (RMB 290.1 billion) in 2004. Among which, hardware market size will grow by 10% to USD 23.01 billion (RMB 190.1 billion); software by 25% to USD 6.53 billion (RMB 53.97 billion); services by 27% to USD 5.54 billion (RMB 45.78 billion).
The best opportunities will come from a number of sectors, including government, manufacturing, power and healthcare. With regard to products, notebook computer, digital camera, intelligent mobile phone, management software have the best growth prospects. Personal computers will continue to serve as the cornerstone for information technology market.
CCW research predicts that the 5 years between 2005 and 2009 will be another golden period for information technology with 18.5% compound annual growth. The major drivers of growth will be government, enterprise and individual demand for IT products and services. China's first golden period for information technology came in 1996 and ended in 2000, according to CCW Research.
(Source: China Computer World 04/05/2004 - Translated by Xi Xianmin)
3. China Machine Tool Market
In 2003, China’s GDP has reached a historical record high of USD 1.4 trillion (RMB 11.7 trillion), representing an increase of 9.1% over 2002. In the same year, the country’s foreign trade volume reached USD 851.2 billion (RMB 7.03 trillion) while its foreign exchange reserves hit USD 402.3 billion (RMB 3.32 trillion) the rapid economic growth of the country helped boost the demand for machine tools. As a result, China’s development of china’s machine tools industry and the growth of imports. In 2003, China imports machine tools worth about USD 4.13 billion (RMB 34.13 billion) and its production and imports both registered an over 30% growth over the previous year, the metal-cutting machine growth 40.04%.
In 2004, China will continue to implement its policy of expanding domestic demand and carry out the proactive fiscal policy and stable and healthy currency policy so as to maintain stable economic growth. China’s GDP is expected to maintain at an annual growth rate of about 8.5% in 2004. This year, China is expected to issue USD 13 billion (RMB 110 billion) worth of Chinese Central Government treasury bonds and money raised from the bond issuance will mainly be invested in the sectors of infrastructure facility construction in the rural areas, public healthcare, western China development program, revitalization of the traditional industrial bases in Northeast China and Chinese Central Government key projects. Non-governmental investment and foreign investment will continue to maintain a strong growth momentum and total investment is expected to increase by 30% over 2003.
(Source: China Machine Tool & Tool builders Association,05/11/2004 - Translated Zhao Peining)
4. Beijing will carry forward the market access regulations on water-saving utensils
Beijing’s lack of water as a resource is becoming very serious and the water-wasting situation in the public area is major contributor to the problem. In order to save water by the end of 2004, all the water consuming utensils in Government offices, schools, hospitals, shopping centers, and public areas will be replaced by automatic, time-fixed or foot-stepping faucets. All the sanitary fittings in public areas must select the equipment that utilizes less than 9 liters of water per function. Besides the public lavatories, Beijing Municipal Water Bureau also issued the water consumption standards for special industries: car washing, public bathrooms, drinking mineral water, and hot water spas. Certain industries will be forced to use strict water-saving measurements, install individual gauges, and pay for special fees according to the actual water consumption.
(Source: China Real Estate News, 24/05/2004 - Translated by Pingping Xie)
5. Beijing Mayor Wang Qishan Reconfirms the Promise Made to Foreign Banks
Beijing International Financial Forum was held on May 19, 2004. Beijing Mayor Wang Qishan reconfirmed at the Forum that according to the promises made by the Chinese Government to the WTO, foreign banks in Beijing will be allowed to open RMB business on December 11, 2004.
Mayor Wang said that Beijing reached USD 43.69 billion (RMB 361.1 billion) in gross regional production in 2003, an increase of 10.7% comparing with Year 2002. Financial services industry added USD 6.21 billion (RMB 51.38 billion), accounting for 14.2% of the city’s entire gross production. The Chinese Government recognizes that the financial services industry is very important to Beijing’s economy development and it has further development opportunities.
(Source: Beijing Business Today, 20/05/04 - Translated by Peng Aiqun)
6. Hot Chinese Chemical Market
China will establish several first-class chemical production facilities in the next three years, according to news from the Sixth International Chemical Engineering and Bio-Technology Exhibition.
In 2003, China’s ethylene requirement was 15 million tons and domestic production was only 6.11 million tons; synthetic rubber import was 1 million tons, accounting for 45.7% of domestic consumption; synthetic resin import was 19 million tons, accounting for 55.9% of domestic consumption; phenylethlene import was 2.66 million tons, accounting for 73.9% of domestic consumption. In addition, domestically produced phosphate fertilizer could only met 70% of demands; dyestuff products could only meet 50% of textile industry demands; pesticide products could meet 65% of agricultural demands; radial tires could meet 37% of demands. China lacks the capability to produce some advanced fine chemical products.
China’s large demand for chemical industry products provides huge markets for overseas oil and chemical companies.
(Sources: China Business Times , 17/05/2004 - Translated by Wan Xiaolei)
Consulate News: Guangzhou
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 Guangzhou.
CS Guangzhou Assists National Fluid Power Association to Explore South China Market
CS Guangzhou assisted the National Fluid Power Association (NFPA) in successfully undertaking a trade mission in Guangdong during May 19-20, 2004. With a membership of about 270 companies in the U.S., the NFPA is a trade association that strives to advance hydraulic and pneumatic motion control technology and services. Led by Executive Director Linda Western, the NFPA trade mission included representatives from five companies such as Prince Manufacturing, HECO Gear, Main Manufacturing, Polygon, and Tobul Accumulator. The mission was to explore market opportunities in South China. With CS Guangzhou’s assistance, the mission members had very productive meetings with the Guangdong Machinery Industry Association, American Chamber of Commerce in Guangdong, as well as over 20 one-on-one meetings with potential partners. The delegation also toured Foshan Constant Hydraulic Manufacturing and Zhengde Plastic Machinery Manufacturing in Shunde. The mission members learned about the business environment, market situation for fluid power products particularly the evolving distribution system, as well as potential partners. Members of the NFPA trade mission were very satisfied with their experience in Guangdong and regarded the trip as a successful first step towards entering the China market.
For more information on CS Guangzhou and the Guangzhou consular region, visit our website at http://www.buyusa.gov/china/en/Guangzhou.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.
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INTERNATIONAL COPYRIGHT, U.S. COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2004. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.