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The strike at the Toyota plant in Tianjin

Workers at the Toyota automotive manufacturing plant in Tianjin agreed to resume work on Sunday morning in exchange for a pay raise of 200 yuan a month. This represented a 13 percent improvement over their existing salaries, short of the 20 percent they had demanded at the outset of the three-day strike. It was unclear how many of the plant¡¯s 1,300 workers had accepted the offer, and whether their return to work indicated a permanent acceptance of the deal, or merely a temporary reprieve.

Workers organized the strike over the internet, and the company offered a 17 percent raise before the strike even began. The workers typically receive a 15 percent annual raise. Edward E. Lehman, Managing Director of Lehman, Lee & Xu, commented that ¡°labor disputes are an unfortunate byproduct of the expanding Chinese manufacturing sector.¡± Furthermore, he added that he ¡°remains optimistic¡± that firms will be able to negotiate equitable wages for workers in the future ¡°without resorting to strikes that threaten to interrupt global supply chains.¡±...

China Business 0 Comment June 23, 2010, 11:47 am


The Development and Reform Commission of Guangxi Province of China broke up a cartel organized to increase the price of rice noodles, using in part it authority under the Anti-Monopoly Law (AML) and in part its pre-existing authority under the Price Law and the regulations under the Price Law. In China central bodies such as the National Development and Reform Commission (NDRC) one of the AML enforcement authorities, have counterparts in each province or other centrally administered areas.

It is reported that in November one producer started to organize meetings on prices and eventually some 18 producers signed a written agreement to raise prices on December 16, 2009. The price increase was implemented on January 1, 2010. Other producers also increased prices.

The local authorities investigated the price increase and levied administrative penalties. Three of the initial producers were fined 100,000 RMB (about $14,654.49 USD) and another 18 were fined from 30,000 to 80,000 RMB. The increases were rolled back and generally the price of rice noodles in the region has returned to normal levels.

¡°This appears to be the first report of the application of the provisions of Article 13 of the AML regarding monopoly agreements, and the first report of action by the NDRC,¡± commented Edward E. Lehman, Managing Director of Lehman, Lee & Xu. We will keep close watch on the progress of this event as well as on any other further actions in the enforcement of the AML in China....

China Business 0 Comment March 31, 2010, 3:55 pm

Volkswagen Inc. V. Trademark Review And Appraisal Board Of The State Administration For Industry And Commerce Of The People¡¯s Republic Of China

Volkswagen Inc. V. Trademark Review And Appraisal Board Of The State Administration For Industry And Commerce Of The People¡¯s Republic Of China Re: Dispute Over Trademark Administration

Volkswagen Inc. (Volkswagen) applied on 8 June 2004 to register the trademark ¡°Tuan¡± (No. 418302) (the proposed trademark) on motorcycles, bicycles, auto tires, land, air, water and rail transport means, automobiles, light vehicles, off-road vehicles, caravans, automobile bodies, engines of land vehicles and interior vehicle accessories. Zhejiang Shaoxing Kesiweiteli Electromechanical Co., Ltd. applied on 10 October 1986 for the registration of the trademark ¡°Antu¡± (No. 276188) (the referenced trademark) and extended its exclusive rights to use the referenced trademark to 29 January 2017 on auto parts. Therefore, the Trademark Review and Appraisal Board (TRAB) decided (the No.13002 Decision) not to approve Volkswagen's application for the registration of its trademark. Volkswagen filed a claim with the Beijing No. 1 Intermediate People's Court against the TRAB's decision.

Volkswagen claimed that: 1. The proposed trademark and the referenced trademark were completely different in terms of their names and meanings. In addition, the texts and logos formed to express the referenced trademark was distinctively different from the proposed trademark; 2. The products on which the proposed trademark was to be used were different from those on which the referenced trademark was allowed to be used in terms of the nature, purposes, target consumers and sale channels. Therefore, those products could not be seen as similar; and 3. Consumers had already recongized the Chinese brand, ¡°Tuan¡± as the Chinese trademark of the Touran multi-purpose cars. The proposed trademark and the referenced trademark would not cause confusion; 4. The owner of the referenced trademark had already expressed its consent to the registration of the proposed trademark.

The TRAB did not intend to amend or revoke the No.13002 Decision.

It was held that: 1. By comparison, the consumers of the products on which the proposed trademark was to be used were end users of automobiles. The key consumers of the products on which the referenced trademark were allowed to be used were manufacturers and repairers of automobiles. The majority of the consumers of the products on which the proposed trademark was to be used would not be confused by the sources of the aforesaid products. Therefore, the aforesaid products were not seen as similar; and 2. Both the proposed trademark and the referenced trademark included the two characters ¡°an¡± and ¡°tu¡±, but such characters were presented in different orders. Therefore, the two trademarks in Chinese were not similar in terms of their patterns, pronunciations and meanings. The proposed trademark and the referenced trademark in English were also obviously different, and the proposed trademark did not include a logo or any other elements. Thus, the proposed trademark and the referenced trademark were not similar trademarks.

Based on the above reasoning, it was concluded that: No.13002 Decision of the Trademark Review and Appraisal Board of the State Administration for Industry and Commerce of the People¡¯s Republic of China was hereby overruled and the TRAB must re-decide on the review application filed by Volkswagen in respect of its trademark ¡°Tuan Touran¡± (No.4108302).

China Business 0 Comment February 25, 2010, 2:27 pm

Communications Network Security Measures To Be Effective Next Month

The Ministry of Industry and Information Technology (MIIT) recently promulgated the Administrative Measures for Communications Network Security Protection to be effective as of 1 March 2010. The Measures provide that communications network operation units shall, in accordance with the requirements of the telecom authorities and standards of communications industry, carry out the work related to communications network security protection and be responsible for their own communications network security. Under the Measures, communications network operation units are required to divide their own communications network units that have been put into service into Class 1 through Class 5 subject to the degree of threat to national security, economic operation, social order and public interest that may be caused by each damaged communications network unit. The Measures clarify that any communications network operation unit that violates any provision of these Measures will be ordered to remedy the situation by the telecom authorities according to its authority and, if the unit refuses to effect such remedy, it shall be given a warning and may be imposed with a fine of more than RMB5,000 but less than RMB30,000.

China Business 0 Comment February 25, 2010, 2:18 pm

Going Green by Growing Green

Increasing environmental concerns and rising crude oil prices are forcing countries including the United States and China to look for alternative energy resources. As the world's second largest oil importer, China is promoting the development of biofuel energies to reduce its dependency on imported crude oil, the demand for which is in the millions of tons.

One way China plans to take biofuel production into its own hands is by utilizing its own abundant natural resources. The jatropha plant, farmed in the Yunnan Province, has typically been regarded as a pest, not a mover for major economic production. However, when the seeds are crushed, the resulting oil can be processed to produce biodiesel fuel. The residue can also be processed and used as a biomass feedstock to power electricity plants or used as fertilizer. It can be grown in a range of difficult soil and weather conditions, making it a candidate for growth even in China¡¯s non-arable areas.

Planting jatropha has been the focus for the Yunnan Province local government¡¯s biofuel development plans for nearly 3 years. It plans to be able to produce 500,000 tons of biodiesel annually by 2015. If China could achieve the target of turning 75 million mu (5 million hectares) of wasteland into jatropha plantation by 2020, biofuel produced by China could replace 40 percent of the current global aviation jet fuel demand.

There are some obstacles that need to be overcome regarding the quality and commercialization of the jatropha plant and biodiesel fuel on the whole. Yields of jatropha are variable as the plant has not yet been domesticated or improved by plant breeders. It will also take a few years to develop a mass production and distribution system for the commercial application of biofuels, especially as the Chinese government has not mandated use of biofuel in cars.

Environmental concerns and alternative energy solutions should be a top priority for China. To provide a healthier living space for its citizens, as well as break into a growing area of international economic investment, biofuel production can only be encouraged. Development of biofuel technologies draws millions in investment from large companies, particularly in regards to the planting and processing factories of the jatropha plant which can be grown indigenously. Scott Garner, director of Lehman, Lee, and Xu Law Firm¡¯s Shanghai Office, stated, ¡°We are very confident about the biofuel industry. Many countries, including China, have realized the renewable energy industry would become a new engine for economic growth. Lehman, Lee, and Xu has years of experience regarding foreign direct investment for Chinese businesses and will be happy to consult with our customers at any of our numerous offices throughout China.¡±

Lehman, Lee & Xu is one of the first five private law firms established in the People's Republic of China. After nearly twenty years of practice and development, Lehman, Lee & Xu now has more than two hundred patent, trademark and PRC-licensed attorneys working in numerous branch offices located in the most-developed cities in China. As one of the leading IP firms in China, Lehman, Lee & Xu provides high quality legal service to its clients and has been consistently rated among the top five IP law firms in China. Lehman, Lee & Xu is also a top-three commercial law firm, and has provided a variety of commercial legal services to hundreds of clients, many of them multinational corporations (MNCs) and Fortune 100 companies. The firm's diverse catalog of commercial services covers foreign direct investment (FDI), merger and acquisition (M&A), tax, employment and many other areas.
For more information about Lehman, Lee & Xu, please visit the firm's website at www.lehmanlaw.com

Morgan Crank

China Business 0 Comment February 23, 2010, 11:11 am

Boom and Bust for China¡¯s Wind Power Industry

Alexander Pan, February 23, 2010

Over the past several years China has proven to be a world leader in renewable energy production with heavy investment into the hydro, solar and wind power industries. The growth of China¡¯s wind power sector has been particularly impressive with a twenty fold increase in total wind power capacity of over the past five years. Now, however, the industry seems to have become a victim of its own success and lack of prior planning as an over abundance of obsolete technology and competition from abroad has sent prices for wind power technology plummeting.

The current ¡°bust¡± of the wind power bubble can be largely attributed to the rapid, yet irresponsible growth of the industry from 2004 through 2009. In 2004 there were only six wind turbine producers in China, this number has expanded to nearly 70 producers in 2009. As these firms rushed into the industry, many of them lacked any prior knowledge of wind power technology and began producing what was in demand at the time with out planning or consideration for future demand. These firms also paid little to no attention to the research and develop of new more efficient technologies

Take turbine blades for example. During the height of the wind power boom.37.5 meter blades were considered to be the most efficient blades available and nearly 75% of all blades produced were of this length. However recent research has shown that a 40.3 meter blade is dramatically more efficient than the smaller blade. This sent demand for the shorter blades crashing and left the firms with a large surplus of blades that had to be sold off at dramatically reduced prices.

In addition Chinese firms are now facing more intense competition from the international market. The Chinese wind power industry had previously been protected by strict trade laws that¡¯s required 70% of all wind turbines used in the country to be produced domestically. The Chinese government recently abandoned these measures leaving the market open to free competition.

While these recent developments may have hurt some of the smaller and less efficient producers of wind turbines, It has provided an opportunity for dramatic growth to those producers who have poured resourced into R&D and have managed to stay ahead of the curve. One such company is the Sinovel Wind Group Co which currently holds the largest share of the domestic wind power product market. Companies like Sinovel and other leading manufactures will no doubt look to acquire the assets and holdings of other smaller firms who have not fared as well during this boom bust cycle. Experts predict that the industry will enter a so called ¡°consolidation phase¡± and we should expect to see a wave of mergers and acquisitions taking place.

Edward Lehman, managing director of Lehman Lee and Xu commented that ¡° What we are current seeing is the bust of a once booming industry. As in any period of bust we can now expect to see the rapid and dramatic reorganization of this industry. We at Lehman Lee and Xu look forward to assisting this industry reorganize and get back on its feet as quickly as possible so that China can continue on its path to becoming a world leader in renewable energy production.¡±

The corporate department at LEHMAN, LEE & XU includes one of the best Mergers and Acquisitions teams in China. In the past, we have advised acquirers, targets, sellers, financial advisors, institutional investors, and special committees of public and private companies in both negotiating and contesting transactions. Our extensive client list ranges from small start-up, high-technology companies to large and experienced private and public corporations.
With varied experience in the field of Mergers & Acquisitions, we have provided transaction support in the structuring and execution of M & As. Our highly praised Mergers & Acquisitions team of lawyers provides advice to public and private enterprises. As one of the most experienced M & A teams in China, we realize that we are constantly learning from our clients' experiences, always supplementing our knowledge and advancing our legal practice and knowledge.

China Business 1 Comment February 23, 2010, 11:11 am

Chinese luxury good consumption

China is Worlds #2 Consumer of Luxury Goods

Now consuming 27.5% of the world¡¯s luxury goods, China has overtaken the United States in luxury good consumption, and is now second only to Japan. Well-educated Chinese between the ages of 20 and 40 whose salaries range from 5000 to 50,000 yuan a month are the drivers behind this ever-increasing demand. China is predicted to become the world¡¯s largest luxury consumer by 2015, indicating outstanding economic growth, yet many believe that too large of a demand also suggests a widening income gap within the country.

Edward Lehman, Managing Director of Lehman, Lee, and Xu noted, ¡°With the increase in demand for luxury goods, Chinese consumers and businesses alike have become more and more concerned about the legitimacy and quality of their goods. Our offices throughout China have experience working with some of the largest luxury brands in the world to prevent the production of counterfeit goods. Our team of specialized attorneys has assisted businesses in all of their patent, trademark, and copyright needs.¡±

Morgan Crank

China Business 0 Comment February 11, 2010, 2:51 pm

China¡¯s ¡°Green¡± sector predicted to reach 10% of GDP

In a report issued by China Business news, Chinas energy conservation, and environmental protection industries may contribute up to 5.3 trillion yuan or 776 billion USD by the year 2015. This would account for nearly 10% of predicted gross domestic product.

According to the secretary of the China Environment Service Industry Association, Luo Jianhua, China¡¯s ¡°Green¡± sector could grow at up to 20 percent every year between 2011 and 2015. This sector of the economy already makes up a significant 4.9% of GDP thus this predicted growth would indeed be impressive.

These figures come in the wake of recent announcements regarding the details of the PRC¡¯s latest five year plan which places heavy emphasis on the development of the ¡°green¡± sector and the reduction of China¡¯s carbon emissions. Please see our blog at http://blawg.lehmanlaw.com/english/ for more information

These figures indicate that China is committed to becoming a world leader in green technology and is dedicated to a so called green growth plan in which high levels of economic growth will be accompanied by high levels of carbon reduction.

Scott Garner the director of Lehman Lee and Xu¡¯s Shanghai office said that he is ¡°excited to see China stepping up its efforts to develop a thriving green technology sector and increase its environmental regulations. We are all excited to help firms operating in the PRC to navigate China¡¯s expanding system of environmental regulations in order to help create a sustainable future for us all.¡±

-Alexander Pan

China Business 0 Comment February 9, 2010, 12:10 pm

Expo Expectations: Shanghai

Similar to most other major cities in China, Shanghai is experiencing a wealth of development and investment being pumped into the city. Expected to exponentially increase foreign and domestic investment in Shanghai is the upcoming World Expo, set to take place May through October. Predicted to grow between 9 and 10% thanks to the Expo, Shanghai¡¯s economy will benefit enormously from the increase in demands for restaurants, hotels, transportation, and retail. The 70 million people anticipated to visit the city will further its already impressive economic growth and status as a Chinese financial capital. Shanghai businesses should strive to retain the investment its visitors will soon offer and use this opportunity to consolidate its reputation as a world leader. Extremely supportive of these opportunities that the Expo will bring, Lehman, Lee, and Xu¡¯s dedicated Shanghai team offers a range of legal advice to both domestic and international companies to aid them with their ventures and legal concerns in Shanghai.

Morgan Crank
Lehman, Lee, and Xu

China Business 0 Comment February 4, 2010, 3:42 pm

Spring Festive purchasing surge

With Chinese New Year just around the corner high end market liquor producers are experiencing rocketing sales.

The Chinese Spring Festival (also known as the Chinese New Year) begins on February 14th, with most people in mainland China enjoying seven days off work from February 13th until February 19th for the New Year celebrations. The exchange of gifts upon such a cultural significant day is commonplace. Gifts range from money to gifting tea, and cakes. 2009 has experienced a surge in the purchasing of expensive branded liquor. Moutai 53, retailing at 735 RMB per a bottle, is one such example of good quality liquor in high demand. Sales of Moutai store in Mudanyuan expects sale of 4 million RMB during 2009 festive season.

2009 marks a diverse change from the Spring Festival of 2008 where the industry experienced suffered a slump in sales, which may have been attributed to the effects of the global downturn. This year however, there appears to be direct correlation between China¡¯s growing GDP with the amount of money being spent on liquor. Some believe that this trend, in high demand for such liquors, is likely to increase throughout the year as China¡¯s economy continues to pick up steam and momentum.

With the Chinese economy predicted to grow by 10% + this year, additional foreign companies will be looking towards establishing a foothold in China. For numerous years, Lehman, Lee & Xu have lead the way in the successfully establishment and provision of legal aid to foreign corporations investing in China via corporate vehicles such as JVs, or WFOEs. In addition to establishment, we are able deal with the necessary registration of the business¡¯s IPR, and also any labour and employment issues corporations working in China are likely to come up against. Our IP, and labour and employment departments are wholly dedicated in keeping our clients are interested parties up to date with important legal issues via our China IP and China Labour Insight Newsletters. Should you wish to subscribe to these newsletters, or if you have any questions or queries relating to the scope of our legal services please email mail@lehmanlaw.com....

China Business 0 Comment February 2, 2010, 10:26 am

Lehman, Lee & Xu: Cross-Straits talks to help boost economic relations

Beijing, China, January 28, 2010 --- Experts from the Chinese mainland and Taiwan held their first talks in Beijing Tuesday, January 26, 2010, to pave the way for the long-awaited Economic Cooperation Framework Agreement (ECFA).

According to a statement released after the meeting, experts from both sides agreed that the basic content of the pact would include market access for commodity trade and service trade, Rules of Origin, early harvest program, trade remedy, dispute settlement, investment and economic cooperation. The two sides also exchanged tax regulations and economic and trade regulations and statistics.

Lehman, Lee & Xu, one of the top three Chinese law firms, many of whose clients are engaged in businesses related to enterprises of both sides of the Taiwan Strait, showed strong interest in this event.

¡°The economic pact might exert certain negative influences on a number of industries on the mainland and in Taiwan¡±, commented Edward Lehman, Managing Director of Lehman, Lee & Xu Law Firm, ¡°but it would benefit cross-Straits trade and economic development in the long run¡± he added.

¡°As the ECFA will cut import tariffs and scrap Taipei's current restrictions on many mainland investments and products, some industries in Taiwan may face strong competition from products imported from the mainland in the short term and vice versa,¡± said John Lee, Senior lawyer of Lehman, Lee & Xu. However, he further commented ¡°from the world point of view, the ECFA would play an important role in helping mainland and Taiwan jointly cope with the financial crisis and fierce competitions in international trade¡±.

¡°We have a number of clients who are engaged in cross-Straits businesses and the expected Agreement will surly have strong effects, both negative and positive, on them,¡± said Scott Garner, Head of Lehman, Lee & Xu¡¯s Shanghai office, ¡°We will therefore keep a close watch on the progress of the cross-Straits talks and provide our clients with timely legal advice for their business activities, helping them to make good use of any positive effect of the pact and try to keep away from negative ones¡± he added.

Lehman, Lee & Xu is one of the first five private law firms established in the People's Republic of China. After nearly twenty years of practice and development, Lehman, Lee & Xu now has more than two hundred patent, trademark and PRC-licensed attorneys working in numerous branch offices located in the most-developed cities in China. As one of the leading IP firms in China, Lehman, Lee & Xu provides high quality legal service to its clients and has been consistently rated among the top five IP law firms in China. Lehman, Lee & Xu is also a top-three commercial law firm, and has provided a variety of commercial legal services to hundreds of clients, many of them multinational corporations (MNCs) and Fortune 100 companies. The firm's diverse catalog of commercial services covers foreign direct investment (FDI), merger and acquisition (M&A), tax, employment and many other areas.

For more information about Lehman, Lee & Xu, please visit the firm's website at www.lehmanlaw.com

China Business 0 Comment January 29, 2010, 7:12 pm

Drug traffickers new target

Alarming tales of young Chinese women being targeted to traffic drugs into China are coming to light at an increasing rate.

What individuals believe to be a mere collection of packages for their ¡°boyfriend¡±, in fact turns out to contain an illegal substance. More worryingly it appears that the problem is increasing through the use of the internet, and online dating. Most who are targeted claim that they are unaware that the packages contain any illegal content.

Monitoring the borders, China Customs deals with incidents such as these, and also the transportation of drugs through the postal and special delivery services.

During January to November 2009, China¡¯s public security forces arrested 82,000 drug suspects, and cracked 70,000 drugs case. The year 2009 also attributed to Customs seizing over 2000 Kg of drugs through its effective monitoring of drug trafficking. The Chinese judiciary enforce a strict application of the law in respect of drug related offences. ...

China Business 0 Comment January 29, 2010, 5:03 pm

New Regulations Regarding Customs Enforcement of IPR

In an attempt to streamline the customs enforcement process regarding intellectual property rights, the General Administration of Customs passed several new regulations that aim to strike a balance between IPR holders and those who import and export goods.
Under old regulations, customs officials were allowed to ¡°dispose¡± of confiscated counterfeit goods by removing unlawfully affixed trademarks, and auctioning off the goods. These goods commonly reappeared in the market and thus caused monetary harm to the rights owner.
The new regulations now require customs officials to seek the opinion of the relevant IPR owners before it may dispose of any confiscated counterfeit goods. This regulation is a direct attempt to bring China up to the WTO TRIPS agreement standard, which specifically states that sized goods should be disposed of ¡°outside the channels of commerce in such manner as to avoid any harm caused to the right holder, or destroyed" and "the simple removal of the trade mark unlawfully affixed shall not be sufficient.¡±
While this move is undoubtedly a step in the right direction, it is important to note that the regulation requires customs officials to seek the ¡°opinion¡± rather than the ¡°consent¡± of the relevant IPR owner. It thus does not give IPR owners the right to demand the destruction of counterfeit goods rather than the auctioning off of such products.
Another salient feature of these new regulations is that IPR owners will now be able to seek settlements with the infringing party without undergoing a formal customs investigation. It is hoped that this will allow IPR owners to gain valuable information regarding the supply and distribution chains of such counterfeit items while also substantially reducing the resources required of the Customs Department to investigate each and every claim.
The new regulations also contained several smaller modifications such as changes to the notification protocol, the processing of renewal applications, and the cancellation of recordals. All of these modifications are designed to streamline and expedite the customs enforcement process.
Mr. Edward Lehman, managing director at LEHMAN, LEE & XU, said that these regulations ¡° Demonstrate China¡¯s commitment to bringing itself up to the global standard of intellectual property rights enforcements.¡± Mr. Lehman also expressed that he is ¡° excited to see how these new regulations will unfold in practice.¡±
LEHMAN, LEE & XU is the third largest corporate commercial law firm in China, established in 1992 by a group of Chinese lawyers devoted to developing excellence in the practice of law and to the founding of modern law practices in China, providing a full range of China IP services including prosecution, licensing and dispute resolution. LEHMAN, LEE & XU's IP lawyers have a wealth of experience in the IP law of China and in the international laws and conventions which govern the procurement and enforcement of IP worldwide. The Firm is recognized as a leading Law Firm providing the best and most diversified legal services and solutions to its clients. Today, LEHMAN, LEE & XU has extended its affiliate offices across China employing more than 250 licensed lawyers, patent and trademark attorneys and legal assistants.
To learn more about the Lehman, Lee & Xu, please visit to website: www.lehmanlaw.com

Alexander N. Pan
Lehman, Lee, and Xu...

China Business 0 Comment January 27, 2010, 2:46 pm

Mongolia Will Hold The Inaugural Mongolia Economic Forum 2010

Tsolmon Shar

On February 8th and 9th of 2010, the Inaugural Mongolia Economic Forum of 2010 will be held in Ulaanbaatar under the auspices of the Prime Minister of Mongolia with active support of the President of Mongolia and Parliament (State Great Hural) of the Country. The main purpose of the Forum is to consulate and discuss with policy-makers, scientists and domestic and international investors on development issues. Holding this Economic Forum is significantly important for Mongolian and international business community.

During the Forum 2010, efficient utilization of the nation¡¯s human and natural resources to improve the competitiveness of the country will be key agenda issues. Other key issues which will be discussed in the Forum include budget reforms, mining development and related infrastructure, improvement of financial and stock markets, green economy and land rehabilitation, preparing educated labor force for development and improving overall business environment of Mongolia.

The Forum will be annually organized in February by Mongolian Economic Forum NGO involving many participants from different backgrounds such as government officials, local governors, scientists, NGOs, media and business leaders.

Edward Lehman, Managing Director at Lehman, Lee & Xu Law Firm, commented that ¡°it is great opportunity for business leaders to share their business operations with officials and find a way for further business environment improvement in Mongolia during the Forum¡±.

Lehman, Lee & Xu is the first international law firm opened its branch office in Ulaanbaatar, the capital city of Mongolia. The lawyers at Lehman, Lee & Xu provides a wide range of legal advices and best solutions to their clients. ...

China Business 0 Comment January 22, 2010, 5:55 pm


Tsolmon Shar

Since gold prices have risen, many investors have been seeking investment opportunities elsewhere within the mining sector.

China National Gold Group Corp (CNGG), the country's second largest gold producer, was in talks to buy several gold mines overseas. The group¡¯s target investment destinations include Mongolia, Russian, North America, Australia and Africa.

CNGG prefers low risk and mature projects in terms of foreign investment. The capital operation manager Wu Zhanming said in China Daily interview: ¡°We are only interested in operating mines, and will not get involved in grassroots risk exploration projects.¡±

According to the China Daily News, CNGG added 92.4 tons of new resources to its 1,200 tons of gold reserves in 2009, entrenching its position as the Chinese largest gold reserves holder. It produced 123.19 tons of gold last year, up 37 percent from 2008. CNGG prefers to increase even more its gold reserves and output in 2010.

The company will mainly focus on gold mining to take advantage of rising gold prices. In the meantime, it will tap into mining other metals, including copper, silver and zinc, as a hedge against the risk of gold price fluctuations.

Mongolia is one of few countries in the world which has a rich of mineral resources. Currently, over 6,000 mineral showings/deposits of 80 different minerals are known in Mongolia (including coal, copper, gold, iron ore, tungsten, molybdenum, phosphate, uranium, and oil). With such large scales of minerals and discoveries of the world¡¯s largest Oyu Tolgoi copper/gold deposit, Mongolia is the top destination of foreign investors. At the end of March 2009, some 5,221 exploration and mining licenses had been issued covering a total area of approximately 48 million hectares of land (32% of the total land of Mongolia). ...

China Business 0 Comment January 22, 2010, 5:39 pm

AML Update: Salt Reforms

Sam Engutsamy, January 20 2010.

Having been operational for over 2000 years, China¡¯s monopoly on the sale and production of salt appears to be drawing to an end.

The National Development and Reform Commission (¡°NDRC¡±) are looking to submit proposals to the State Council to bring a conclusion to the two thousand year old monopolistic practice. The salt monopoly grew from the need to raise revenue from taxes, and to tackle the iodine deficiency in the populace¡¯s diet within certain areas of China.

China National Salt Industry Corporation, the largest producer and seller of salt for the last sixty years, has functioned as regulator under the NDRC¡¯s supervision.

Post AML enactment, there were concerns that the state owned enterprises (¡°SOEs¡±) provision found under Article 7, would allow SOEs to be exempt from the AML. This consequently led to concerns that the AML may, during its enforcement, be based upon a policy of protectionism. If the NDRC¡¯s proposals are approved by the State Council, it would endorse the AML¡¯s important, and equality, whilst at the same time set to rest any stakeholder worries. Additionally, such a move can only benefit China, as it continues in implementing a market economy.

China Business 0 Comment January 20, 2010, 4:00 pm

International Trade: Abbreviations

What does ¡°MFN¡± stand for?¡°MFN¡± stands for ¡°Most Favourite Nation¡±. The MFN principle is used within World Trade Organisation (¡°WTO¡±) Agreements, and is based upon the principle that member states should treat others fairly. Such principles form solid foundations of the General Agreement on Tariffs and Trade (¡°GATT¡±), the General Agreement on Trade in Services (¡°GATS¡±) and the Agreement on Trade-Related Aspects of Intellectual Property Rights (¡°TRIPS¡±). There are some exceptions to the MFN principle, however theses are only operational under strict conditions.

Example of MFN duty rates being reduced?
Tariff No. Product 2008 (%) 2009 (%) 2010 (%)

08101000 Strawberries 16.9 15.5 14
08129000 Fruits and nuts 26.8 25.9 25

What does ¡°FTA¡± stand for?
¡°FTA¡± stands for Free Trade Agreements. FTAs are operational normally between two countries with an aim to reduce tariffs to trade. China currently has ten FTAs in operation, including agreements with New Zealand (http://www.chinafta.govt.nz/) and Singapore (http://www.fta.gov.sg/fta_csfta.asp?hl=27). Additionally, China has six FTAs under negotiations, with countries such as Australia, Iceland, and Norway, and two FTAs under consideration with India and Korea. Under such agreements, certain products are capable of enjoying conventional duty rates.

For further details on China¡¯s FTAs please visit: http://fta.mofcom.gov.cn/topic/ennorway.shtml

China Business 0 Comment January 20, 2010, 3:30 pm

Banking regulator should regulate credit cards

A blanket ban that the China Banking Regulatory Commission announced on issuing credit cards to students under the age of 18 does not mount to an adequate response to the rising default risks in the credit card market.

Improved regulation of the credit card market requires China's banking regulator to press commercial lenders to carefully assess creditworthiness before issuing cards while encouraging innovations to improve consumers' advantages.

The number of credit cards in China has almost tripled in the last three years to 150 million by the end of March this year because of both aggressive promotion and more adaptation to credit consumption.

As the credit card business becomes an increasingly important source of revenue, domestic banks vie with one another to issue as many cards as possible. Some even made the number of new cards a measure of performance.

It was under such circumstances that domestic banks began to offer credit cards to students though most of them do not have a steady income.

A recent report by the People's Bank of China found that credit card debt, which is at least six months overdue, surged 133.1 percent in the first quarter from a year early to 4.97 billion yuan.

That sum looks tiny compared with new loans worth trillions of yuan that Chinese banks have lent so far this year. And, it has seemingly not even made a dent on the balance sheet of banks. By the end of June, commercial banks in the country have managed to cut down the total of non-performing loans by 42.2 billion yuan from the beginning of this year.

Nevertheless, commercial lenders still cannot afford to ignore the potential risk of overdue credit card debt. The explosive expansion of the market can lead to an upsurge in defaults that will hurt both banks and consumers in the absence of due diligence before the cards are issued.

The successful operation of student credit cards in other countries indicates that the business does not have to be a bad one. To a certain extent, it is just a financial invention that offers both benefits and risks. And, if properly administered, it adds to both consumers' welfare and banks' profits.

Denying credit cards to all students under the age of 18 regardless of their varying financial condition will spare banks the trouble of identifying the creditworthy but entail loss of revenue.

If the credit card market is to be further explored, the banking regulator should focus on correcting the skewed incentives commercial lenders adopt for expanding such business.

Besides, concrete efforts are also needed to safeguard consumers against complex financial products (which are open to abuse), that people cannot understand easily and use properly.

Original source: China Daily
Source: Xinhua Net

China Business 0 Comment July 21, 2009, 11:39 am


Kristine Kwok

Jun 23, 2009

Two mainland engineers who survived a kidnapping by the Taleban in Pakistan last year have sued a leading mainland telecommunications-equipment supplier.
Zhang Guo , 29, and Long Xiaowei , 28, are both unemployed and still recovering from injuries sustained in the ordeal.

They said Zhongxing Telecommunications Equipment (ZTE (SEHK: 0763)) had not fulfilled its responsibilities for what they had gone through since last August.

They also sued Jiangbo Group, a company based in Xian with which they signed contracts, for failing to pay their salaries and medical fees. ZTE outsourced the project in Pakistan to Jiangbo.

The pair were kidnapped by Pakistani Taleban militants last year in the notorious northwestern region of Dir, while returning from work to their dormitory.

Mr Zhang managed to escape in mid-October, while Mr Long injured his ankle during the attempt and was recaptured by the Taleban. He was released only in February.

"For ordinary men like us, such an experience is a nightmare that will remain in our memory forever," said Mr Zhang, who has suffered from post-traumatic stress disorder. But only when the two men returned to their homes in Shaanxi province did they realise that their salaries had not been properly paid and their medical fees were not being covered by Jiangbo.

Mr Long said Jiangbo had agreed to pay them on a monthly basis but after their kidnapping paid on a daily basis, which translated to a wage reduction of almost one-third.

A mandatory insurance fee of roughly 1,000 yuan (HK$1,135) each, which mainland law requires companies to sign for employees sent overseas, was deducted from their salaries, Mr Long said.

Mr Zhang said he had to cut short his stay in a hospital to treat his emotional problems because he could not afford the costs, which Jiangbo refused to pay.

Mr Long said he was advised by doctors to undergo an operation to remove a steel plate in his ankle months ago, "but Jiangbo would not even talk about this with me".

ZTE said in a statement that it would seek to resolve the problem rationally and would work to achieve consensus with all the parties involved. ZTE said it had been closely following the incident and the aftermath and had been urging Jiangbo to settle the issues with the two engineers.

Jiangbo was not available for comment yesterday.

Although Mr Zhang and Mr Long were not hired by ZTE, their lawyer Yang Jun said the company was sued as well because it still had liability, as the engineers went to Pakistan for its project.

ZTE reported a net profit of more than 1.6 billion yuan in 2008.

Source: South China Morning Post...

China Business 0 Comment June 23, 2009, 9:13 am


By Ding Qingfen (China Daily)
Updated: 2009-06-16 07:34

Foreign direct investment (FDI) has been in decline for eight months, but the size of the fall in May was smaller than the one in April, probably signaling an easing off.

Workers prepare for the opening of an international trade fair in Shanghai. [File photo]

In comparison with other economies, China is still poised to be among the first choices for global investors in the next five years, the Ministry of Commerce (MOFCOM) said.

According to the figures released by the ministry Monday, in May, the FDI dropped 17.8 percent compared to a year earlier - equaling $6.38 billion. The number of newly approved foreign enterprises contracted by 32 percent to 1,649.

The figures exclude those in the financial sector.

But May's performance was better than April's, when the FDI registered a negative growth of 22.5 percent.

Between January and May, the FDI fell by 20.4 percent year-on-year to $34.05 billion and newly approved foreign enterprises dropped by 33.8 percent to 7,890.

In the same period, foreign investment in China's central and western regions fell by 35.7 - more than the national average. Newly approved foreign enterprises fell 30.2 percent. For several years prior to the financial crisis, the regions had seen higher rates than the national average.

Yao Jian, a MOFCOM's spokesman, noted the central and western regions' sharp decline: "The coastal areas have the advantage of having gathered a much larger number of foreign investment enterprises in the last three decades."

Encouraged by confidence from global investors in China's 4 trillion yuan stimulus plan, the "decline in FDI will probably be slowing during the rest of the year," predicted Li Jianfeng, macro-economics and trade analyst with Shanghai Securities, a domestic brokerage.

"There is a good chance that the FDI will register a positive growth in the last quarter, given the low reference point in 2008," he added.

During the first quarter, the FDI decline showed some signs of bottoming out. But in April, the performance went down again by 22.5 percent, compared with a decline of 9.5 percent in March.

At the same time, the International Monetary Fund predicted China's GDP would grow by 6.7 percent this year, 1.3 percentage points lower than the Chinese government's target, but higher than the 5.25 percent of India and 5 percent for Vietnam, two countries vying for FDI.

The stimulus plan is having an effect, said Yao, who pointed out that retail volume rose to 4.88 trillion yuan in the first five months, up by 15 percent year-on-year.

Yao predicted that in 2009, China's FDI will contract by an annualized 20 percent in contrast to last year's growth of 27.65 percent.

Source£ºChina Daily...

China Business 0 Comment June 16, 2009, 10:03 am

China ¡°critical¡± for the future of General Motors

As American consumers have tightened their purses in recent months, moving away from the new car industry, automakers are turning to international markets to keep afloat. Most recently, GM announced plans to focus on the Chinese auto market in hopes that the thriving industry will revive the troubled company.

According to GM, the Chinese auto industry was the leading market in the world for the first half of 2009. The company also maintains that domestic sales of GM vehicles in China have risen considerably for each of the first five months of 2009, as compared to 2008. By the end of 2008, GM claimed a 12% market share in China, and hopes to increase that figure over the next 5 years.

As economic development spreads throughout China, more people will be able to afford to purchase cars. The overwhelming population throughout the nation is indicative of the potential that large companies hope to tap in the emerging Chinese markets. While GM has been unsuccessful in securing a top-spot in the American auto market for many years, the company¡¯s new restructuring plan sets realistic goals for the future. GM management hopes to produce more efficient vehicles that will appeal to thrifty spenders in the US, and plans to introduce new and improved vehicles worldwide to stimulate global sales. Many people believe this is a last hope for GM, but if the company¡¯s reported numbers are correct, the Chinese market will play a substantial role in revitalizing the auto industry.

Source: China Daily (via lawinfochina.com)

China Business 0 Comment June 12, 2009, 5:24 pm

Re: Race to China¡¯s 3G Mobile Market, Trademark Dispute Gives iPhone Competitors a Leg Up

Despite the misconception that China does not have effective IP laws or that the laws are not adequately enforced, the first to file rule for registration has shown otherwise for Apple¡¯s iPhone. I was surprised to learn that despite having registered their computer software and hardware¡ªApple failed to register their mobile phone trademark. Taiwanese manufacturer Hanwag registered the iPhone trademark forcing iPhone to either use another name or negotiate to gain entry into the market. However, this sort of enforcement seems to be formalistic and a bit removed from the reality and purpose preventing intellectual property appropriation: adhering to the letter of the law in this case seems to be a difference without distinction. And regardless of my personal sentiment¡¯s about iPhone, if it does not qualify for the Well-Known Trademark exception for the first to file rule, what would?


China Business 0 Comment June 12, 2009, 3:40 pm

China Sees Potential in Trade Litigation

Trade disputes with China have been commonplace since its accession to the WTO in 2001. Chinese manufacturers are consistently the target of antidumping and countervailing duties (AD/CVD) from trading partners like the US and EU. For years, Chinese manufacturers, taking their cue from the Ministry of Commerce, have decided largely to forego litigation and settle disputes outside of court. Recently, however, due to the financial crisis and China's prominent new role in the global economy, the Ministry of Commerce is starting to challenge AD/CVD and other safeguard measures at the WTO. An illustration of this newly found desire to counter claims of unfair trade practices is China's challenge to US antidumping duties on steel pipes, which is currently at the expert panel stage.

Perhaps an even more drastic departure from previous policy is China's decision to initiate its own trade litigation against notoriously litigious trading partners like the United States. Illustrative of this new trend is its recent challenge to US health restrictions that effectively ban the importation of Chinese poultry. China's decision to pursue trade litigation signals several shifts taking place in its approach toward international trade. First, China is seeing the WTO dispute settlement system as less of a restriction on its economic aims and more of an avenue to pursue its goals. Instead of developed countries using litigation to stymie the flow of imports from China, litigation can be used to secure access to those markets by proscribing illegal trade barriers. Second, China will no longer play the role of a sheepish trading partner. When claims of unfair trade practices are made against its industries, China will defend the practices in court. When illegal barriers are erected to its imports, China will challenge those barriers in court. Several keen observers have noted that China does not possess the legal infrastructure--Chinese WTO trained attorneys--to accommodate the rise in trade litigation. For the short term, at least, China will continue to rely on WTO-savvy American firms to handle the bulk of its international trade law workload.

Eric Langland...

China Business 0 Comment June 12, 2009, 3:30 pm

Are new light bulbs in China enough to catch up to the West?

China has recently announced plans to increase its use of solar and wind power over the next decade in order to produce one fifth of its energy needs through renewable power by 2020. While this goal sounds very aggressive, Zhang Xiaoqiang, vice-chairman of China's National Development and Reform Commission, believes China will easily reach this target. This 20% target matches the European goal, and would be impressive considering China¡¯s relative poverty.

Despite China¡¯s announcement, the U.S. still believe China is not doing enough. "Even if every other country in the world cut its emissions 80 percent by 2050¡­China¡¯s business-as-usual emissions alone would cause global average temperatures to increase by 2.7 degrees centigrade," warned U.S. Assistant Secretary of Energy David Sandalow earlier this week in a speech delivered in Beijing.

I agree that more steps need to be taken, not just by China but by the world. I can understand the US wishing to push China to lead the world in sustainable power generation, but I feel as though they are throwing stones in a glass house. The US has been the world¡¯s largest polluter, by a large margin, for many years. And only very recently has China overtaken the US for the dubious honor of world¡¯s dirtiest economy. I do not, however, see this as the Chinese government¡¯s final move addressing climate change. This is just one of many steps to address the environment. China also announced recently they were beginning to promote the use of over 100 million energy-efficient light bulbs this year. According to one report, replacing ordinary bulbs with these compact energy-saving fluorescent light bulbs will help save 6.2 billion kilowatt hours of electricity and reduce carbon dioxide emissions by 6.2 million tons.

Jackson Moller...

China Business 0 Comment June 12, 2009, 1:50 pm

Flu likely to hasten launch of hog futures trading

By Zhou Yan

The spread of A (H1N1) influenza virus, which was initially known as swine flu, might help accelerate the debut of China's hog futures market, some industry observers said.

The outbreak of the epidemic flu has resulted in a big drop in hog prices during the past week.

"The launch of livestock futures may help to lock in the price of the product, and protect hog breeders and processors from drastic price swings," said Feng Yonghui, chief analyst from AND Group, a Beijing-based agriculture service provider.

According to data put out by Beijing Orient Agribusiness Consultant Co Ltd (BOABC), hog prices have dropped from 13.41 yuan per kg in January to 9.88 yuan in April.

"Hog prices fell even more last week, to below 8 yuan per kg in most cities of north China, due to the shrinking demand arising from a fear that eating pork products would result in contracting the virus," said Feng.

The State Council issued a plan to stimulate the development of agriculture and increase farmers' incomes on Feb 2, which, for the first time, said the government would adopt measures like futures exchanges to develop the hog breeding industry.

Dalian Commodity Exchange started the trial run for livestock futures delivery in 2007, but the trading proposal has yet to get the nod from top authorities.

Guo Huiyong, an analyst from BOABC, however, said trading in hog futures was unlikely to take place this year.

"How to set the standards to examine and quarantine livestock is one of the major concerns among top regulators. Unfortunately, the possible eruption of A (H1N1) flu will add more pressure on the authorities to approve the introduction of hog futures," he said.

Livestock processing has developed rapidly in past years. Guo estimated that large-scale livestock processing workshops would have the capability to process up to 300 million hogs per year in total by 2011.

However, some analysts said building an infrastructure that benefits most hog suppliers, rather than the current flu, was the key factor that regulators have to consider before launching hog futures.

"The current overhang of spot prices to contract prices in many existing commodity futures probably will also happen in the proposed hog futures, which will dampen the fast-growing livestock industry," an analyst surnamed Qiao from a Shanghai-based brokerage said.

Source: China Daily

China Business 0 Comment May 6, 2009, 9:44 am

Listed companies to hand out huge bonus

By Ding Qi

Although the economic slowdown trimmed profits of domestic listed companies last year, quite a few still propose lucrative dividend packages which may total 238.53 billion yuan ($34.92 billion), according to a report issued Monday from China Securities Journal.

In annual reports of some 1,600 companies listed in the Shanghai and Shenzhen stock exchanges, 862 proposed cash or share dividend plans, the newspaper said. Total cash dividends are expected to reach 238.53 billion yuan, accounting for nearly 30 percent of all profits of main-board-listed companies.

Salt Lake Potash Co Ltd, a resource company in northwest Qinghai province, was the most generous company in both markets with a dividend of 1.283 billion yuan or 1.672 yuan per share before tax. The payout accounts for 94.06 percent of its 2008 profit.

Notably, 211 of 273 companies listed in the Shenzhen-based SME board plan to reward shareholders with 7.767 billion yuan in dividends, accounting for 31.4 percent of the total profit of the year. Among them, 17 companies each were ready to hand out more than 100 million yuan, while only eight were willing to do so in 2007.

However, earlier statistics from China Securities Journal showed net profits of domestic listed companies fell 17 percent from a year earlier to 820.82 billion yuan. Nearly 18.5 percent of the companies reported losses in 2008.

Huang Junjie, an analyst from China Jianyin Investment Securities, told chinadaily.com.cn that the rising refinancing threshold was an important factor behind listed companies' generosity.

In an effort to encourage companies' dividend payouts and boost long-term investment, China's securities regulator issued a new regulation last October, pegging refinancing approval with their dividend policies.

"The listed firms, if applying for refinancing, must pay dividends in cash totaling no less than 30 percent of its distributed profits over the previous three years," according to the regulation.

"In order to raise additional funds or conduct other capital moves in the market, companies have to stick to the rules and keep a sound dividend paying record," Huang said. "In addition, a generous dividend policy helps to boost corporate image and maintain investor relationships."

There are also 480 listed companies which managed to gain last year, but are not ready to share the profits with their shareholders. Dividend payment plans are to be implemented upon the annual shareholders meetings' approval.

Source: China Daily

China Business 0 Comment May 6, 2009, 8:50 am

China, US firms sign over $10b deals

Chinese and US firms signed 32 trade and investment contracts on Monday worth some $10.6 billion, which the US Chamber of Commerce said will support US economic growth and job creation.

"With businesses in both countries struggling, these deals come at a critical time and will help create jobs and stronger commercial bonds between the United States and China," said Myron Brilliant, the chamber's senior vice president of international affairs, who presided over the signing ceremony.

Companies like China Mobile, Lenovo, Amway, Cisco, Dell, Emerson, EMC, Ford, Freescale and Hewlett-Packard signed deals at the ceremony.

"The Chinese government does not pursue a trade surplus with the US," visiting Chinese Commerce Minister Chen Deming wrote in an article published on The Wall Street Journal on Monday.

"We will continue to encourage Chinese companies to import more from the US, and we will also welcome US companies and trade-promotion agencies to be more active in China," said Chen.

Prior to the signing ceremony, the US Chamber of Commerce and the China Chamber of Commerce for Import and Export of Machinery and Electronic Products hosted a forum, at which senior American and Chinese business executives spoke about the importance of US-China cooperation in addressing shared economic, geostrategic, and environmental challenges.

Source: China Daily

China Business 0 Comment April 29, 2009, 10:05 am

Mainland companies can invest in Taiwan

BEIJING, April 27-- Chinese mainland companies can soon invest in Taiwan for the first time in six decades.

The mainland and Taiwan Sunday agreed on the long-awaited move at the third cross-Straits talks between the Association for Relations Across the Taiwan Straits (ARATS) and the Straits Exchange Foundation (SEF).

ARATS, representing the mainland, and the Taiwan-based SEF signed three agreements to replace chartered flights with regular ones, jointly combat crime and boost cooperation in finance.

Taiwan sincerely welcomes mainland companies and will expand the field for them gradually, SEF said in a statement. The details of the investment regulations will be "announced in one to two months", SEF Vice-Chairman Kao Koong-lian told a press conference.

Zhang Guanhua, deputy director of the Chinese Academy of Social Sciences' institute of Taiwan studies, said the move is "vital to the realization of direct trade across the Straits".

The central government has been calling for direct cross-Straits links in transport, postal services and trade since 1979, and allowed Taiwan companies to invest on the mainland in the 1980s.

But mainland companies were not allowed to invest in Taiwan. Only the mainland's real estate companies can enter the island's market at present, and that too under strict conditions.

"Since the top negotiators of ARATS and SEF have agreed on the investment issue and Taiwan has promised to take specific measures within two months, mainland companies should be able to invest in the island soon. This will turn the one-way investment process into a two-way affair," Zhang said.

The Taiwan authorities have been trying to boost cross-Straits relations since the end of last year and hope to seek the mainland's cooperation in industrial sectors, including in solar energy, herbal medicine, automobiles and aviation, Zhang said. It's these areas that are likely to be the first to be opened to mainland companies.

"Companies in these areas may have a greater chance of investing in Taiwan since the island authorities are eager to seek cooperation in these fields," Zhang said.

The Taiwan authorities, however, may not allow mainland investment in the island's pillar industries such as semiconductors for the time being, Zhang said.

"Nevertheless, as the cooperation progresses, I believe the scope for mainland companies will widen," he said.

ARATS and SEF signed an agreement yesterday to set up a regulatory framework for financial services firms to invest and do business in each other's markets. They agreed to gradually set up a clearing system for the Taiwan dollar and the yuan.

"This will drive new investment in the domestic market and bring strong interest from foreigners as well," Reuters quoted Standard Chartered economist Tony Phoo as having said.

"Even though there's nothing really (unexpected) that came out, it's something positive - something that's been holding back for too long," he said.

High hopes over the deals have supercharged Taiwan's stock market this year, making it the world's best performer after Shanghai.

Original Source: China Daily
Source: Xin Hua News

China Business 0 Comment April 29, 2009, 8:43 am



WASHINGTON -- Zhou Xiaochuan, governor of the People's Bank of China, said on Saturday that positive changes have taken place in the Chinese economy, whose overall performance is better than expected.

"Facing the impact of the financial crisis, the Chinese government has promptly introduced a policy package to expand domestic demand and maintain financial stability, striving to respond to the impact of the financial crisis," said Zhou at the International Monetary and Financial Committee (IMFC) meeting held here on Saturday.

"Positive changes have appeared in the operation of the national economy, and overall performance is better than expected, " said the Chinese central bank governor.

The slowdown in GDP growth has been contained, with GDP growth in the first quarter of 2009 reaching 6.1 percent, while the growth rate in industrial production has also rebounded, with industrial added value growing 5.1 percent over the same period last year, said Zhou, adding that "there are signs of gradual stabilization."

Meanwhile, Zhou warned that the Chinese economy is still facing challenges. "It should be recognized that the rebound in China's economy remains to be consolidated," he said.

"The internal and external environments are still challenging, external demand continues to shrink, the decline in export volume is relatively large, some industries have excess capacity, government revenue is falling, and employment pressures continue," he noted.

The Chinese government will continue its implementation of an aggressive fiscal policy and a moderately accommodative monetary policy, and implement the package plan in response to the crisis, said Zhou.

He stressed that the long-term economic development trend in China has not changed.

"As macroeconomic policies gradually take effect, China's economy has the conditions for maintaining relatively rapid development," he said.

Source: China Daily



China Business 0 Comment April 27, 2009, 6:00 pm

Attorneys from Bullivant Houser Bailey PC visit Lehman Lee & Xu


Attorneys from Bullivant Houser Bailey PC, Scott E. Bartel (C, Front), John P. Yung (R, Front), Daniel B. Eng (L, Front) visit Lehman Lee & Xu at Lehman Lee & Xu ¡®s Beijing office, April 20, 2009.

On April 20, 2009, three attorneys on behalf of Bullivant Houser Bailey PC (Lehman Lee & Xu¡¯s strategic alliance) visit Lehman Lee & Xu. Two parties discuss legal practice and economic tendency at Lehman Lee & Xu¡¯s Beijing office. Bullivant attorneys believe, even under the present severe international economic situation, China's economy has survived the worst period and is now on its way to recovery. They also believe, there will be more and more Chinese enterprises go public in United States in the latter half of this year.

The two parties consent to join hands and move forward with close cooperation.

Re: Bullivant Houser Bailey PC and two Parties strategic alliance
Bullivant Houser Bailey PC is a law firm of more than 160 attorneys with six offices on the West Coast. Founded in 1938, the firm maintains offices in Portland, Oregon; Seattle and Vancouver, Washington; Sacramento and San Francisco, California; and Las Vegas, Nevada.
On July 14, 2008, Bullivant Houser Bailey PC and Lehman, Lee & Xu announced their strategic alliance. The two firms will provide People¡¯s Republic of China (¡°PRC¡±) corporate clients with greater access to foreign capital markets and funding.
Through the strategic alliance, Bullivant and Lehman can assist international companies in the following practice areas, including but not limited to:

Corporate Finance and Securities
Commercial Litigation
Intellectual Property

China Business 0 Comment April 24, 2009, 2:31 pm

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