The State Development Planning Commission (SDPC) recently issued detailed regulations to curb cut-throat dumping in the industrial, commercial and service sectors. Drafted in accordance with the Price Law, the regulations were released on August 2 in a bid to strengthen macro-economic fine tuning and maintain market order. The new rules apply to all commodities whose prices are regulated by the market. All enterprises are required to keep detailed accounts of all costs and expenses, and provide relevant documents when required by pricing authorities, to determine whether they are abiding by the regulations.

Manufacturers or distributors selling below cost price in several regions will be regarded as infringing the regulations and will be subject to penalties from State pricing authorities. Meanwhile, the malpractice of dumping limited to one region will be punished by the local authority concerned. If any disagreement should arise as to how the dumping practices have been determined, enterprises can demand to be heard by pricing authorities before penalties are imposed.

Fierce price wars broke out in the industrial sector when many manufacturers, faced with a slack market resulting from an oversupply of goods, resorted to price discounts to secure market share. However, instead of benefiting from heavy discounting, many enterprises, already tottering on the brink of bankruptcy, were dragged deeper into the mire, according to Commission sources. The Commission and other relevant state departments issued a joint notice last year to put an end to discounting. Earlier this year, the Commission found that the scope of application of the notice was too limited when it discovered that the practice of dumping had spread to the service and commercial sectors. This has prompted the Commission to redraft the regulations to cover a wider range of industries.
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Chinese banks were urged to give more credit support to Chinese enterprises which invest in overseas assembly plants with their equipment and relatively mature technology. The People's Bank of China (PBOC) and the Ministry of Foreign Trade and Economic Cooperation (MOFTEC) have jointly issued a circular calling on the commercial banks and the Export/Import Bank of China to step up their efforts to finance such enterprises. Short-term, long and mediumterm loans should be granted, the circular said. The long and medium-term loans, which mature after a minimum of one year, should be mainly used to purchase in China the equipment and technology needed for overseas investments. The enterprises should use the short-term loans to buy raw materials and machinery parts within the country or as working capital. The loans should be in the Chinese currency, renminbi. However, in case of real need, short-term loans can be in foreign exchanges.

The move is one of the country's major efforts to encourage overseas investment and bolster the much beleaguered Chinese export sector. Due to a grim international market and the fallout of the Asian financial crisis, Chinese exports were dragged down from the 20.9% growth rate in 1997 to the 0.5% growth last year. During the first half of this year, Chinese exports went down 4.6% year on year to $83.01 billion. To boost the exports, which used to contribute two to three percentage points to the GDP growth of the national economy, the Chinese Government has put forward a series of measures since the beginning of this year. Besides raising the export rebate rates, encouraging Chinese enterprises to invest overseas with their equipment and technology while buying raw materials from home is one of the other methods the government has resorted to.

As preferential treatment, PBOC allows the commercial banks to charge lower interest rates than the officially set ones with those enterprises which are known for their good credit records and are engaged in projects with sound returns. Otherwise, the interest rates should be the same as the official ones. It also required the banks to strengthen supervision and administration of the loans. If any firm is found to have diverted the loans for other uses, delayed the payment of the premiums and interests, defaulted or engaged in illegal foreign exchange transactions, the banks should take timely risk-hedging actions and report to PBOC, MOFTEC and the State Administration of Foreign Exchange. Besides the credit support, exports of the equipment and raw materials are also given export rebates. Firms which are approved to do so are granted foreign trade rights and international engineering contracting rights, according to a senior trade official.
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The Chinese Government has implemented a series of policies to encourage the export of nonferrous metals. Ma Minxiu, director-general of the industrial management department with the State Nonferrous Metals Industry Bureau, said the Chinese Government will increase the export rebate rates further for non-ferrous metals. Last year, the export rebate rates for aluminum, lead and zinc were increased to 11%, from the original 9%. Following this, officials indicated that in the second half of this year, the export rebate rates would be increased to 13% and 15% and include a broader range of products. The measures are meant to reduce the cost and increase the competitiveness of enterprises.

With the rapid development of the nonferrous metals sector, and especially the growth in the copper processing capacity, in recent years, China has been able to meet the demand for copper on its own market. The ban on copper exports, implemented during the earlier period of deficiency, will be scrapped. The industrial administration plans to impose a low tariff on copper to stimulate exports. In addition, the concerned government agencies are preparing to undertake a reform in the silver sales system.

For about 50 years, the silver mines have turned in their silver production to the Chinese central bank, which purchases and sells the silver at international prices. After the reform, the mines are allowed to trade the silver on the domestic and international markets. The government also intends to eliminate all preferential policies concerning silver exploration and production, including the zero value-added tax and special loans for silver production. Industrial experts pointed out that the silver export is expected to become a new growth point in the country's exports. All the measures are meant to give a strong impetus to the increase of exports.

The non-ferrous exports for this year are targeted to reach $1.5 billion, compared with $1.18 billion last year. However, statistics indicated, the exports in the first six months of this year totaled $538 million, down 4% from the same period last year. Ma noted that the exports are of much significance to the industry, because there is an oversupply on the domestic market. The industry must make use of the international market to get rid of the surplus. In order to fulfill the export goal for this year, industrial enterprises must strengthen management and cut costs to increase their competitive edge.
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Owing to the fact that the construction of residential houses is likely to be an important part of future economic growth in the country, the Ministry of Construction has worked out new preferential policies in a bid to attract investment from overseas real estate developers to make up for domestic fund shortages.

The new policies include: 1. Foreign-funded real estate projects will be exempt from taxes levied in terms of regulation of investment orientation. 2. Chinese banks will provide housing loans and also with the lowest interest rate to construction projects undertaken by foreign developers with part of capital raised by their own effort as soon as the construction starts up. 3. Overseas developers' profits, after taxed in accordance with related regulations, can be converted into foreign exchange and remitted abroad freely.

Statistics show that there are in China now more than 3,800 Hong Kong, Macao and Taiwan funded real estate developing enterprises and 1,200 foreign-funded ones, accounting for one-fifth of the nation's total. Each year, foreign companies invest over RMB4 billion in real estate, holding a big proportion of the total. For a period of time, regulatory tax on investment orientation has been a big burden on overseas companies invested in real estate in mainland China. And at the same time, foreign real estate developers have found it difficult to have a balance in foreign exchange through their profits. The new preferential policies for overseas real estate developers would help increase foreign investment in real estate development in China.

At present, China is heavily shouldered with the task of housing construction. By the year 2005, it plans to build at least 1.5 billion sq m of residential houses in cities and towns, and complete rebuilding of 2.9 billion sq m of old houses. It is impossible to rely on domestic developers' own efforts to fulfill the huge construction plan. Active introduction of overseas funds is, therefore, necessary. However, due to the policy reasons, overseas developers have been very cautious in investing into China's real estate, especially in construction of economic houses. The new policies drawn up by the Ministry of Construction is obviously of practical significance in attracting overseas housing developers.
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China's lawmakers reviewed and passed the draft of a law on individual solely-owned enterprises during the 11th session of the Standing Committee of the Ninth National People's Congress, which held recently in Beijing. Committee members said the Law on Individual Solely-Owned Enterprises will have an impact on the development of individual solely owned enterprises that meet the need of a market economy. The law stipulates that anyone can set up an individual solely owned enterprise as long as he declares the investment, has a legal name, a fixed operation place, necessary operating conditions and employees for his enterprise. But people who are banned by laws from running profitable business are not allowed to open an individual solely owned enterprise.

The law aims to regulate the operation of the individual solely owned enterprises while better protecting their rights. The law requires enterprises to be honest, not making fake products or damaging the interest of consumers. As the individual solely owned enterprises are usually small in scale, the law stipulates that names of such enterprises must conform to their forms of liability, business scope and firm size. Investors have the right to own the properties of the enterprises and the related property rights can be inherited and transferred.

The individual solely owned enterprises can apply for loans, acquire the right of land use and enjoy other legal rights. Any organizations or individuals are forbidden by the law to illegally ask for money, goods or labor in any way from the individual solely owned enterprises. Some private firms have to pay unreasonable high fees presently. The individual solely owned enterprise should be dissolved when its investor decides to do so, when there is no inheritor or the inheritor gives up the inheritance rights after the investor dies or when the business license is revoked. The law protects the rights of debtors when the enterprise is dissolved and liquidated. The investors should be liable to the debts occurred during the operation of the enterprise after it is dismissed. However, the liabilities of the debtors are removed if the creditors do not claim their request within five years after the enterprise is dissolved.

Scores of private entrepreneurs cheered the newly passed law. During discussions held by the All-China Federation of Industry and Commerce, business leaders said the law, which has provided the private sector more opportunities and protection with a legal basis, will foster private-sector growth and promote its employment. Analysts indicate many individuals will make bosses of themselves since the law does not limit the investment of the individually owned enterprises. Many people will be encouraged to join the private sector and more job opportunities will be created with the establishment of more private enterprises.
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China will undertake a series of new foreign investment policies to help resolve practical difficulties that foreign-funded enterprises encounter in the country, Ma Xiuhong, assistant minister of The Ministry of Foreign Trade and Economic Cooperation (MOFTEC), said at the China Fair for International Investment and Trade recently held in Xiamen, Fujian Province. The new policies are designed to encourage foreign investment in four areas which include: encouraging foreign enterprises to develop technology; strengthening financial support to foreign-funded companies; encouraging foreign businesses to invest in the central and western areas of China; and further improving management and services for foreign ventures.

New incentives include preferential tax policies to encourage foreign-funded companies to upgrade technology. For instance, foreign-funded research and development centers and high-tech or export-oriented foreign ventures will enjoy import tax exemptions for more equipment and components. Foreign enterprises and foreign-funded enterprises will no longer be subject to business taxes for transferring technologies to Chinese enterprises. New policies to promote foreign investment in the central and western parts of China include loosened controls on the industrial categorization of investment, and on the shareholding percentage of foreign investors in joint ventures.

The new policy authorizes provincial governments to approve certain investment projects, except in special cases. MOFTEC will adjust the industrial directory for foreign investment and reduce the limitations on the establishment of wholly foreign-owned companies. It has also enlarged business areas for investment companies established by multinational corporations in China, permitting these companies to sell their products on the Chinese and overseas markets. The move allows these ventures to provide transportation and warehouse services for the companies they control, and purchase commodities not subject to quotas and export licenses.

MOFTEC officials also disclosed that China will open wider such sectors as retails, finance and insurance. In the field of commerce, the ministries and departments under the State Council are managing to draft a set of rules on approval and administration of foreign-funded whole-sale enterprises. In the field of finance, the restrictions on regions for foreign banks to set up business outlets in the inland of China will be lifted. In the field of insurance, the regions opened to the outside world will be expanded further to include Shenzhen, Chongqing, Dalian and Tianjin in addition to the current two cities of Shanghai and Guangzhou.
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New methods and strategies will be adopted to beef up the development of China's central and western regions. In the past, the economic development within the regions was mainly based on the agricultural sector, the exploration of natural resources and processing. Although the regions possess abundant natural resources, their location and comparative backward infrastructure have hindered the development of the local economy. To change the economic mode by optimizing the economic structure is the key to boosting the local economy. A senior official from the Ministry of Foreign Trade and Economic Cooperation said recently that while continuing to solicit foreign funds to its eastern coastal area, China will open a wider door for its central and western regions than its eastern regions so as to orientate more foreign investment to the parts. Active measures and a complete set of auxiliary policies for the purpose include:

1. With approval of the central government, those foreign investment to advantageous projects in the central and western regions of China will enjoy the preferential policies for encouraged ones listed in Catalogue of Industries for Guiding Overseas Investment while those projects listed for restriction can enjoy better condition in terms of qualifications for launching such projects and portion of stake for foreign investors.

2. The State will select some projects in such fields as agriculture, water conservancy, communications, energy and environment protection in the central and western regions to solicit foreign funds and will support these projects with auxiliary funds and other related measures.

3. The central government encourages the enterprises for military use in the central and western regions to be transformed into those for civil use and encourages those large and medium-sized State-owned enterprises to use foreign funds for carrying out technical innovation.

4. Foreign-funded enterprises in the eastern region of China are encouraged to invest in the central and western regions of the country. Those enterprises in which foreign investment surpasses 25% of the total investment will be considered as foreign-funded enterprises in preferential treatment.

5. Sectors and projects permitted to be put on pilot trial by the State can principally be adopted in the central and western regions.
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The fertile land, rich resources and improved infrastructure in East China's Jiangsu Province are attracting more domestic and overseas investors. Reform and opening up are the main driving force behind economic development in the province. By the end of last year, foreign-funded enterprises in Jiangsu totaled 20,500 and 15,000 of which are fully operational. Total foreign investment has grown to $36 billion. The total volume of foreign trade and investment for the province has surpassed one-fourth of the GDP and the overall fixed assets. Accompanying the rapid development of social and economic construction, the policy of comprehensive opening up has taken hold across the province. Jiangsu has become one of the country's most popular places for investors from home and abroad.

Located in the rich and beautiful Yangtze River Delta, Jiangsu profits from advantageous geographical conditions. Covering an area of 102,600 square kilometers, the province has a population of 71 million. Jiangsu is an open province in the coastal area with a well developed economy and culture, benefiting from convenient transportation, advanced technology and education, and beautiful scenery. Since the beginning of reform and opening-up policy in the late 1970s, Jiangsu's economy has undergone rapid and sustainable development. In the past two decades, the annual growth rate of GDP registered 12.8%. Last year, the province's GDP reached 720 billion yuan ($86.7 billion), up 11%. The growth rate was 3.2 percentage points above the national average. And the per capita GDP in the province surpassed 10,000 yuan ($1,200), higher than many other parts of the country. During the first half of this year, the province has reported a 12.7% year-on-year increace in foreign trade, to $13.39 billion. The total includes $7.73 billion of exports and $5.66 billion of imports. Exports from local state enterprises reached $3.16 billion, a 4.5% rise on a yearly basis, with the volume accounted for by overseas-funded enterprises growing by 20% to $4.2 billion and the volume accounted for by private businesses rocketing by 580%to $3.38 million. Exports to Asia have resumed their former level, reaching $3.88 billion, a rise of 14.4% on a yearly basis.

The province has accelerated its restructuring and fostered economic growth in new areas. A modern transportation network has gradually taken shape across the province. The Shanghai-Nanjing Expressway, as well as Nanjing-Lianyungang and Nanjing-Nantong grade A roads, currently open to traffic, have played an important role in economic and social development. The province has also made breakthroughs in infrastructural development. Key projects such as the Nanjing Lukou Airport and South Jiangsu section of Beijing-Hangzhou Grand Canal have been completed. Jiangyin Yangtze River Road Bridge will soon be open to traffic. The construction of other key projects, including Nanjing Yangtze River No 2 Bridge and North Jiangsu Expressway, has been accelerated.

The '99 China Jiangsu Trade Fair of Brand Name, Quality and New Products will open in Nanjing, capital of the province, from October 7-10. The trade fair will be a good opportunity to popularize the brand name, quality products manufactured in the province and to attract domestic and overseas markets. Many famous brands of Jiangsu, such as Chunlan, Little Swan, Panda, Shinco and Weiwei, will be on display. Brand name products from other provinces will also be shown. The exhibition's seven halls include electronics and telecommunications; electric appliances and light industrial products; machinery, metallurgical and building materials; textiles, silk and garments; chemical, pharmaceutical and health products; food and beverages; and automobile, agricultural machinery and mechanical engineering.
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'99 China (Hebei) International Economic and Trade Fair jointly sponsored by the China International Trade Promotion Council and China International Chamber of Commerce, is scheduled to be held from October 9 to 12, 1999 in Shijiazhuang, the capital city of Hebei Province. This large economic and trade fair will work as a primary exploration to the conveyance of foreign investment and traders through non-governmental channels as well as a trial to see how to get access to internationally accepted practices. Also won support from the Hebei provincial government, the fair will organize large exhibitions and project negotiations.

The organizing committee of the fair has carefully selected more than 70 projects from such sectors as agriculture, infrastructure, technology, environmental protection, technological renovations and transfer of property rights of existing enterprises and from other major industries of Hebei for choices of domestic and overseas investors. Moreover, this fair has also opened a website on the Internet. So far chambers of commerce and commercial associations of more than 30 countries and regions and world trade centers of more than 20 metropolitans have expressed their will to participate in the fair.

The province plans to boost its tourism industry this year. It will propose a list of tourism projects for cooperation. They all aim at promoting this industry's rapid development in the province.Overall planning in the tourism sector will be reshaped according to customer demand and the province's level of economic development. Located in China's northeastern coastal area around Bohai Bay, Hebei Province encompasses the two municipalities of Beijing and Tianjin. The potential tourism market is really very attractive. Moreover, Hebei has various well-known historical sites and cultural resorts such as the Qinhuangdao coastal area and the upland resort city of Chengde. The province is also endeavoring to enhance its foreign market. Although the overseas market is somewhat sluggish owing to the Asian financial crisis, the province is trying to woo more tourists from European and American countries. Hebei authorities have taken significant steps to clean up its environment.

Over the past two decades, Hebei has made great achievements in its reform and opening-up program as well as the tourism industry. Statistics from the provincial information office indicate that Hebei had established 432 scenic spots for tourism by the end of 1998. In the 1990s, Hebei's economic development has proceeded very rapidly, with the annual GDP growth rate exceeding the nation's average for eight consecutive years.
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The coastal city of Penglai will speed up its efforts to turn itself into a modern tourism and industrial city by the turn of the century. Penglai, located on the northern part of Jiaodong Peninsula in Shandong Province, is a beautiful city. During the past two decades, the city, which is called a fairyland on earth, has witnessed great changes. Penglai has stepped up the pace of its opening up to the outside world, and as a result the city has attracted more and more overseas investors. In the last three years, the utilization of foreign investments as well as the foreign trade have grown at an annual rate of 30%, according to Vice-Mayor Sun Jianmin. Expanding the reforms and attracting more foreign capital are the most important measures to meet the cross-century economic targets set by Penglai. The city has a great potential for foreign trade and investments. The city will channel more overseas investment into sectors such as machinery, electronics, wine making, chemical industry, textile, metals, garments, medical and health products.

More large- and medium-sized enterprises, as well as those with brand name products, will cooperate with overseas investors to accelerate the industrial readjustment reform and quicken the pace of the implementation of new technologies. Also, more of the city's products will be introduced to the world market. Last year, the Asian financial crisis affected China's exports, but Penglai overcame the difficulties and made much headway in the introduction of overseas capital and increasing foreign trade.

Last year, the city received $52 million in contracted overseas investment and the actual foreign capital used hit $25.94 million, up 48% and 21.8% over 1997. It also earned $49.36 million in foreign exchanges. This year, the utilization of foreign capital will increase to $30 million and the foreign exchange earnings will hit $55 million. In the past, the city's main market for foreign trade was Asia, but since last year, it has adjusted its export pattern and started to explore new markets in places such as Europe, North America and the Middle East. At present, the total export to the new markets has risen from 15% in 1997 to 60%. So far, Penglai's products have been exported to more than 40 countries and regions.

Meanwhile, the city has taken advantage of the price reduction of raw materials from Southeast Asia and geared up the development of its processing trade. Last year, the processing trade accounted for 58.8% of the total foreign exchange earnings. The advantageous geographic location, attractive tourism resources and favorable investment climate of Penglai are appealing to overseas investors. The city has a first-class deep sea international port and an industrial development zone. So far, Penglai has established economic and trade cooperation with more than 30 countries and regions.

In the next five years, Penglai's economy is expected to grow at an annual rate of 12%. By 2005, the fixed asset investment will reach 6 billion yuan ($720 million), half of which will go to scientific and technological reforms. Penglai will focus on the development of the high and new technologies, gold, machinery, auto, wine making, agricultural, marine resources and tourism sectors. In the near future, Penglai plans to expand its opening up and promote technological development as well as an export-oriented economy. In the next five years, the city will receive $200 million of overseas investment and attract more large foreign enterprises

Anshan offered projects for overseas cooperation(continued)

11. SM compound sulphur-fixing agent. Classification: New construction. Investment: $7.92 million.

12. Production line of weaving and dyeing for new artificial synthetic fiber to be used for clothing material. Classification: Technological upgrading. Investment: $8 million (Foreign investment: $3 million).

13. Thick artificial silk cloth with an annual output of 16 million meters. Classification: Technological upgrading. Investment: $14.46 million (Foreign investment: $2.96 million).

14. Decorative cloth. Classification: Technological upgrading. Investment: $10 million (Foreign investment: $5 million).

15. Upgrading 30,000-spindle textile production line. Classification: Technological upgrading. Investment: $15 million.

16. Juice. Classification: Technological upgrading. Investment: $8.75 million.

17. Cornstarch with an annual output of 50,000 tons. Classification: Technological upgrading. Investment: $5.5 million.

18. A wine factory. Classification: New construction. Investment: $18 million (Foreign investment: $8 million).

19. Industrialized development of gingko. Classification: New construction. Investment: $5 million (Foreign investment: $2 million.

20. Industrialized development of black sweet corn. Classification: New construction. Investment: $5.08 million.

21. Colloidal zymogen and preparation. Classification: Technological upgrading. Investment: $12 million (Foreign investment: $8 million).

22. Annually producing 10,000 tons of synthetic pyridine. Classification: New construction. Investment: $22 million.

23. The second-phase expansion of Anshan Jinsu Building Material Co Ltd. Classification: Technological upgrading. Investment: $5.95 million.

24. Qianshan Mountain scenic area Xianrentai Cableway. Classification: New construction. Investment: $6.5 million.

25. A dogbane coating machine for paper production. Classification: Technological upgrading. Investment: $16.05 million.

26. High-tech soil-less potted plants. Classification: New construction. Investment: $5.42 million (Foreign investment: $4.22 million).

27. Smoke and steam desulphurization facilities with an annual production of 20 sets. Classification: Technological upgrading. Investment: $5 million (Foreign investment: $2 million).

28. Large-size enameled glass equipment. Classification: Technological upgrading. Investment: $6 million (Foreign investment: $3 million).

29. Static trends make up equipment without power. Classification: Technological upgrading. Investment: $10 million.

30. A production line for electricity-powered bikes. Classification: Technological upgrading. Investment: $48.2 million.
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China plans to invest 180 billion yuan ($21.6 billion) in the construction of highways this year to link more cities and promote local economic development. The investment in this field this year is to continue at the same planned growth rate of last year. 110 billion yuan ($13.2 billion) is expected to be poured into 279 major projects, with a total length of 27,900 kilometers. Of these, 15,784 kilometers are first-class highways. Meanwhile, the country will invest 50 billion yuan ($6.02 billion) in upgrading the highway network and 20 billion yuan ($2.4 billion) in speeding up the construction of roads, which connect counties and villages in rural areas.

The communication ministry's main task this year is to upgrade quality control of highway construction and supervise highway projects by restructuring the highway management system. It is the most important for the country to make highway construction project quality the top priority, ministry officials said. Every highway construction project's quality must be guaranteed by the builder from the beginning to the end, and even after the completion of the project. China is trying hard to speed up highway construction to stimulate the country's economic development. By the end of last year, the actual investment reached 211.8 billion yuan ($25.5 billion).
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An economic belt in Central China encompassing four provinces is experiencing such vigorous growth momentum that it is likely to wrest the limelight from the country's fast developing eastern region. Stretching over an area of more than 300,000 square kilometers and with a population of 120 million, the economic belt is connected to China's financial heart, Shanghai, in the east and linked with the enormous municipality of Chongqing to the west. The economy in the region mainly depends on commodity trade, with a total of 30 billion yuan ($3.62 billion) worth of contracts signed since 1997. A variety of markets, including labor, Chinese medicine, farm produce, seeds, telecom equipment and books, have mushroomed in Wuhan, capital of Hubei Province, which is the transportation hub of the central economic belt.

The economic belt, with Wuhan at its core, radiates through Hubei, Hunan, Jiangxi, and Henan provinces. These provinces have substantially enhanced economic and technological cooperation among themselves to co-ordinate economic development with related contractual investment totaling 60 billion yuan ($7.25 billion) over the past three years. Wuhan has become a financial and commercial center in Central China, with some 500 financial companies trading securities and bonds worth 680 billion yuan ($82.13 billion) over the past two years. It is also a research center for technological development in the region.

During the past two years, more than 1,800 research results were marketed in Wuhan, a city which recorded 100 billion yuan ($12.08 billion) in GDP last year, and used $1 billion of overseas investment as well as 5 billion yuan ($603.8 million) of domestic funds. Floating capital has helped revitalize a number of large State-owned automobile and steel enterprises, which have learned to merge their assets to avoid restructuring and enhance their market competitiveness.
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China's lead-recycling industry has huge potential for development, as there are only a small number of enterprises in the sector at present. Lead is the most recycled metal, and the cost of this procedure can be 40% less than refining lead from ore, experts say. Energy consumption during the recycling process is only two-thirds that of ore-refining, which also makes the process attractive. The global output of recycled lead was 2.95 million tons last year, accounting for 60% of the total output of refined lead.

However, China's lead-recycling industry is underdeveloped, with production lagging far behind that of North America, Europe and Japan, where highly developed auto industries provide adequate raw materials for lead recycling. Most enterprises still use old polluting methods, and, to date, only two have adopted environment-friendly techniques. Experts have called for the strengthening of regulations in the industry, both for development and environmental protection.
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Iveco, a commercial vehicle division of Fiat Group, is awaiting government approval to manufacture buses in Changzhou, Jiangsu Province. The company is also considering producing heavy trucks in China and is discussing with some potential partners, according to Iveco officials. Besides Nanjing Iveco Motor Co Ltd (Navico), a light commercial vehicle joint venture between Iveco and Yuejin Motor Co, Iveco plans to fortify and expand its presence in China. It is developing 2.8-liter turbo engines to upgrade the light commercial vehicles produced in Nanjing. The locally produced engines will be exported to Brazil in the future, and some engine parts will be exported to Italy. Iveco is set to establish a modern distribution and after-sales network over the next few years to serve their customers.
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Siemens Ltd China (SLC) will open subsidiaries and representative offices in the cities of Hangzhou, Nanjing, Xiamen, Nanchang, Guiyang, Nanning and Urumqi in the near future. The firm hopes its annual business volume in China will exceed its annual turnover of 8 billion marks ($4.14 billion) in the United States within 10 years. At present, Siemens' annual business volume in China stands at 4 billion marks ($2.1 billion), accounting for 30% of the firm's total business volume in the Asian-Pacific Region. As one of the world's major electrical engineering and electronic companies, Siemens business operation in China began as early as 127 years ago. It now has established 12 solely funded businesses and 44 joint ventures in China, with 26,000 employees engaging in seven distinct sectors.
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The US-based BG Technologies LLC is to introduce in China a technology to turn biomass waste materials, like straw, rice husk and wood chips, into clean gas. Discussions are underway with several Chinese companies to establish two joint ventures. The first joint venture will be located in Southwest China's Chongqing and would rely on a rice husk gasification system suitable for rice growing areas. The second plant will be in Shandong Province and will install a gas network for centralized cooking in rural areas. With the system, straw left in the field can be used in an centralized unit to produce clean gas which can be transported to each house of the village through pipelines. Investment for each venture would range between $5 million and 25 million.
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