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China Commercial Brief - September 24, 2004

U.S. Commercial Service - American Embassy, Beijing
Vol. 2 No. 167

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Editor:Matthew Gettman
Contributors: CS Guangzhou, Bai Ying, Wang Jianhong, Mei Baochun, Xie Pingping

News Briefs
In addition to the article summaries provided by CS Beijing, 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. This week we are pleased to feature a contribution from our Guangzhou post.

1. Guangzhou to Build the Largest Garbage Vacuum Pipe System in the World
2. Demand for Steel from Auto Sector Estimated at 17 Million Tons in 2004
3. Chinese Telephone Users Hit 618 million
4. China to build large hydropower stations on Yangtze River
5. Beijing Will Build 200 kilometer fast public transportation line

1.Guangzhou to Build the Largest Garbage Vacuum Pipe System in the World

After six months study and investigation, Guangzhou Municipal Government has planned to build a pilot vacuum pipe system to collect garbage, said Guangzhou Urban Environment & Sanity Bureau. This pilot project will be the largest of its kind in the world and the first one in China. The project investment is estimated to reach USD 26-36 million (RMB 200-300 million) and the project is scheduled to be completed in 2008.

The location will be in Jin-sha-zhou residential area. According to the new Guangzhou urban development plan, Jin-sha-zhou has been designed as a model residential area of low density surrounded by forests and lakes. It is designed to accommodate 115,000 plus residents. The collecting system will cover an area of nine square kilometers.

Under the new garbage-collecting system, residents can put rubbish into the ventilation shelving that is connected with vacuum pipe system, and then the rubbish will be automatically pumped via vacuum pipe into the central station for disposal. Such system has been used in 30 countries and regions in the world over the past few decades.

Guangzhou city government first learned of this technology last December and decided to introduce it to Guangzhou when Guangzhou Mayor Zhang Guangning visited the system in Hong Kong in April of this year.
(Source: Nanfang Dushi Newspaper, 09/21/2004, Edited by CS Guangzhou)

2.Demand for Steel from Auto Sector Estimated at 17 Million Tons in 2004

According to the China Association of Iron and Steel Industry, China’s demand for steel by the automotive industry is estimated to reach 17 million tons by the end of 2004.

China’s outputs of motor vehicles were two million units in 2001, an increase of 13 percent over the previous year. The output increased to three million units in 2002, rising 39 percent. The auto output exceeded four million units in 2003. Driven by the strong growth in the automotive sector, the consumption of steel by auto manufacturers in China reached 12 million tons in 2003.

It is estimated that China’s production of motor vehicles will exceeded five million units by the end of 2004. The consumption of steel from the automotive sector will reach 17 million tons in 2004.

The manufacturing of passenger cars is driving up the consumption of steel. The growth of farm vehicles still maintains slow, which leaves the consumption of steel for farm vehicles unchanged from the previous year.
(Source: China Auto News, 08/15/2004 - Translated by Bai Ying)

3.Chinese Telephone Users Hit 618 million

With 85.3 million newly-added phone subscribers in the first eight months of this year, the number of Chinese telephone users reached 618 million at the end of August 2004, according to a September 21 report in Ren Youdian.

China now has 315 million cell phone users, of which, 66 million are using the prepaid service. The number of fixed-line phone users stands at 303 million, of which, 100 million are from rural areas.

The east coastal area continues to be the most attractive place for investment in the telecom sector, mainly because the east coastal region is the most important revenue generator for all telecom operators in China. According to the report, Chinese telecom operators invested USD 14.7 billion (RMB 121.5 billion) in telecom infrastructure in the past eight months. Among which, the investment in China’s eastern region is USD 7.7 billion (RMB 63.6 billion), mid-China region USD 3.5 billion (RMB 28.9), and the west region USD 3 billion (RMB 24.8 billion).
(Source: Ren Youdian, 09/21/2004 - Translated by Wang Jianhong)

4.China to build large hydropower stations on Yangtze River

China will start to build four huge hydropower stations on Jinsha River, a major tributary in upper reaches of the Yangtze River, in 2005. China’s Yangtze Three Gorges Project Development Corporation signed an agreement on August 24, 2004 with the Yunnan provincial government to construct and develop these stations.

The Jinsha River owns 16 percent of China's total hydropower resources. With a combined power generation capacity of 38.5 giga watts, the four stations, Xiluodu, Xiangjiaba, Wudongde and Baihetan, can generate as much power as two of the Three Gorges Project. The investment is expected to reach more than USD 24.2 billion (RMB 200 billion) and the construction will be finished in 2020. Upon completion, Yunnan will serve as an important base to send electricity from western China to the economically developed eastern coastal China.

Construction of the stations signals the start of China's development of hydropower resources on the upper reaches of the Yangtze River.
(Source: China Electric Power News 09/02/2004,- Translated by Mei Baochun)

5.Beijing Will Build 200 kilometer fast public transportation line

According to the news from Beijing Municipal Transportation Commission, 16.8 kilometers long south axis express way is under construction, and city government is planning to build another 200 kilometers of express roads, including Chaoyang Road.

Beijing will invest USD 3.63 billion (RMB 30 billion) on speeding up the construction of new Beijing Transportation System. Besides the operations of Capital Gym South Road, the Second Phase of South Central Axis, Lan Dian Chan South Road, currently the constructions of Xi Zhi Men Wai Steet West, Lian Hua Chi West Road, Tong Hui River North Road, Beijing – Chengde Express Way are under tight schedule, those lines will connect with other 10 lines, to link up the Second Ring Road, the Third Ring Road, the Fourth Ring Road and the Fifth Ring road, it will form 382 kilometers express road system, among which, at present, 86% of the construction has been finished.

Liu Li Qiao Hub of communications will start to operate by the end of 2004, it will become the first national public transit hub which functions as three-dimensional exchanging station for passengers of long-distance transportation, public buses transportation and future metro line No.9.
(Source: China Construction News, 09/21/2004 -Translated by Xie Pingping)

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.

The Foreign Commercial Service in Guangzhou hosted New Product USA 2004 Catalog Show in Guangzhou during September 16-20, 2004. The Commercial Service of the U.S. Department of Commerce in partnership with the economic development agencies of the state of Florida, Georgia, New Jersey, and Missouri organized new Product USA 2004. The Catalog Show was held as part of the Guangzhou Fair, which is a high profile trade show in Guangzhou. 160 U.S. companies had their product brochures displayed at the fair. Over 400 Chinese companies visited the U.S. booths and expressed interest in the products.

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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