Learn Chinese - Quick review: September 4-10

BIZCHINA / Weekly Roundup

Quick review: September 4-10
(China Daily)
Updated: 2006-09-11 10:10

Life insurance in the country

China's insurance watchdog is preparing to release new rules to regulate
and promote the development of life insurance in rural areas.

"The rules will probably be made public at the end of this month or early
October," says Gong Yisheng, director of the system department of the
China Insurance Regulatory Commission (CIRC).

Gong disclosed that the threshold for insurers' entry into rural areas
will be even higher than for cities, due to the fragility of the rural
market.

For instance, the insurer should have outlets in local markets to ensure
service for rural residents. And they will not be allowed to flee the
rural market at will.

FDI magnet

China will remain a magnet for foreign investors in the coming years
despite higher wage bills and competition from other emerging economies,
officials and researchers say.

"Rising labour costs and international competition will not affect its
position as the biggest recipient of foreign direct investment (FDI)
among developing countries," says Kong Linglong, a senior official of the
National Development and Reform Commission.

The country currently ranks second only to the United States as an FDI
recipient, says Kong, who is the director of the commission's Department
of Foreign Capital Utilization.

Economic forecast raised

The Asian Development Bank (ADB) raised the forecast for China's economic
growth this year from 9.5 per cent to 10.4 per cent, citing strong
investment growth and robust exports.

"The economy posted very rapid growth in the first half with fixed asset
investments, exports and imports all rising significantly from a year
earlier," Ifzal Ali, ADB chief economist, said in a statement.

The Chinese economy grew a faster-than-expected 10.9 per cent in the
first half, compared to 10.2 per cent in the previous year.

"The acceleration of growth has heightened concerns about overcapacity
and the possibility of a painful pullback in economic activity," the
Manila-based development financial institution said in its Asian
Development Outlook Update.

China-ASEAN trading

The agreement to establish a China-ASEAN Free Trade Area (FTA) has helped
trade grow rapidly and the momentum will continue, a senior official says.

"The FTA is the major contributor to China-ASEAN trade growth. It has
benefited, and will continue to benefit, both sides," says Gao Hucheng,
vice-minister of commerce.

"The negotiation of China-ASEAN FTA has progressed smoothly, and work
should be complete by 2010 as scheduled," he adds.

Since the 1990s, bilateral trade has witnessed an average annual increase
of more than 20 per cent, and since 2001, it has registered even stronger
growth.

1 2 3 

(For more biz stories, please visit Industry Updates)

Most Popular Stories in 48 Hours

� China halts foreign investment in brokers

� Chip makers file competing lawsuits

� Pension funds tightened up

� Market lifeless as investors cautious

� CGPI rising year on year in August

Today's Top News 

� RMB gains before US Treasury Secretary's visit

� More peacekeepers head to Lebanon

� 75th anniversary of invasion marked

� Man rejects first penis transplant

� Female space tourist blasts off

Top Biz News 

� New regulation on IPO takes effect

� China Re plans dual-listing in HK, Shanghai

� Shanghai, Guangzhou connected with Lhasa by train

� IMF plans to boost bigger say for China

� New vision sought for community health care

Alibaba is the largest B2B marketplace in the world. Source model ship,
wooden puzzle, one-piece toilet, RC hovercraft, photo album, prom dress,
pocket bike, Vaginal Speculum, Samurai Sword, String Panty and PVC Pipe.

Learn Chinese