F igure9-1 Distribution of Foreign Direct Investment of Chinese Non-financial
Departments in 2008 Unit: %
In terms of industrial distribution, China's foreign direct investment of non-financial departments refers to resource development, machine manufacturing, wholesale and retail, public products, design and research etc. The investment comparatively focuses in commercial service, mineral mining, manufacturing, production and supply of electricity and gas, which accounted for 60%, 16%, 5% and 4% respectively of the total in 2008.
Figure 9-2 Industrial Distribution of Foreign Direct Investment of Chinese
N on-financial Departments in 2008 Unit: %
In terms of foreign direct investment forms of Chinese non-financial departments, more competitive enterprises choose merger and acquisition for invest overseas. Multinational M & A is popular. In 2008, investment via M & A accounted for 50% of the total. For instance, Aluminum Corporation of China acquired Rio Tinto Plc listed in The U.K. with US$ 12.8 billion. Foreign direct investment of financial departments are mainly realized via abroad acquisition and setting up branch banks, accounting for 60% of total foreign direct investment of financial departments. For instance, Industrial and Commercial Bank of China acquired Standard Bank of South Africa and China Merchants Bank acquired Hong Kong Wing Lung Bank.
In terms of regional distribution, developed provinces like Guangdong, Zhejiang, Shandong and Hunan have large scale in foreign direct investment. Guizhou, Hainan, Qinghai and Inner Mongolia Autonomous Region have small foreign direct investment.
Figure 9-3 Statistics on China's Provincial and Municipal Foreign Paid-up Investment from Jan. to Dec. 2008
Unit: US$ 10,000
No
|
Name
|
Paid-up
Investment
|
Proportion
|
No
|
Name
|
Paid-up
Investment
|
Proportion
|
Total
|
614354
|
100
|
16
|
Sichuan
|
12799
|
2.08
|
1
|
Guangdong
|
121394
|
19.76
|
17
|
Chongqing City
|
11215
|
1.83
|
2
|
Zhejiang
|
50558
|
8.23
|
18
|
Production and Construction
Corps of Xinjiang
|
10158
|
1.65
|
3
|
Shandong
|
48627
|
7.92
|
19
|
Guangxi Zhuang Autonomous Region
|
8537
|
1.39
|
4
|
Hunan
|
46502
|
7.57
|
20
|
Jilin
|
7416
|
1.21
|
5
|
Gansu
|
38651
|
6.29
|
21
|
Xinjiang Uygur Autonomous Regions
|
6205
|
1.01
|
6
|
Liaoning
|
32558
|
5.30
|
22
|
Anhui
|
5315
|
0.87
|
7
|
Shanghai City
|
32543
|
5.30
|
23
|
Hebei
|
4709
|
0.77
|
8
|
Fujian
|
27939
|
4.55
|
24
|
Hubei
|
3450
|
0.56
|
9
|
Jiangsu
|
27025
|
4.40
|
25
|
Shanxi
|
2754
|
0.45
|
10
|
Yunnan
|
23915
|
3.89
|
26
|
Ningxia Hui Autonomous Region
|
1571
|
0.26
|
11
|
Henan
|
23636
|
3.85
|
27
|
Jiangxi
|
1446
|
0.24
|
12
|
Beijing City
|
20582
|
3.35
|
28
|
Inner Mongolia Autonomous Region
|
460
|
0.07
|
13
|
Tianjin City
|
15277
|
2.49
|
29
|
Qinghai
|
202
|
0.03
|
14
|
Shaanxi
|
14499
|
2.36
|
30
|
Hainan
|
113
|
0.02
|
15
|
Heilongjiang
|
14285
|
2.33
|
31
|
Guizhou
|
15
|
0.00
|
Source: Ministry of Commerce of China
9.4 China's Light Industry Export
9.4.1 Analysis on Export Statistics
In the first half of 2008, China's light industry export kept stable. In the second half especially the fourth quarter, China's light industry production slowed down, profits decreased and export order died off under the influence of international financial crisis. However, its export amount maintained a high level in 2008. In the end of the year, light industry production situation turned better though not completely due to various favorable factors such as national industrial policy to promote domestic demand and export rebates of light industry products. Therefore, China's light industry export amount and value would keep declining in 2009. Since international financial crisis is difficult to recover in short time, the shrinking of foreign demand for light industry products and rising of international trade barrier will definitely set back China's light industry products.
From Jan. to Dec. in 2008, the total export amount of China's light industry reached US$ 309.23 billion, up by 14.48% than US$ 270.12 billion in previous year. The accumulated growth on year-on-year basis in all months except February exceeded double digits. The year-on-year export value growth is declining. In 2008, food and beverage industry gross export stood at US$ 28.52 billion up by 11.84% on a year-on-year basis; leather and fur products gross export reached US$ 42.55 billion, up by 10.37% on a year-on-year basis; plastic products gross export reached US$ 26.91 billion, up by 15.52% on a year-on-year basis; household appliance gross export reached US$ 27.583 billion, up by 21.94% on a year-on-year basis; metal products gross export reached US$ 23.649 billion, up by 8.41% on a year-on-year basis.
Figure 9-4 Statistical table of China's light industry products gross export from Jan. to Dec. in 2008
Unit: US$ 100 million
Month
|
Export Volume
of This month
|
Accumulated
Export volume
|
Export volume Over the
same period Last year
|
Accumulated growth on a
year-on-year basis %
|
1
|
254.70
|
254.70
|
206.9
|
23.14
|
2
|
180.70
|
435.40
|
397.61
|
9.51
|
3
|
227.74
|
663.03
|
569.53
|
16.24
|
4
|
258.10
|
921.00
|
791.08
|
16.42
|
5
|
257.10
|
1177.87
|
1008.52
|
16.8
|
6
|
254.85
|
1432.89
|
1241.51
|
15.42
|
7
|
258.85
|
1718.63
|
1486.95
|
15.58
|
8
|
282.91
|
2001.53
|
1737.10
|
15.22
|
9
|
287.22
|
2288.65
|
1980.26
|
15.57
|
10
|
273.62
|
2562.28
|
2213.35
|
15.76
|
11
|
258.46
|
2820.59
|
2457.58
|
14.77
|
12
|
271.70
|
3092.29
|
2701.18
|
14.48
|
Source: China Customs Statistics
According to export value statistics of major light industry products in 2008, leather, fur products and cultural, educational and sports goods export value took large proportions of 13.78% and 12.78% of the total. Household appliance industry ranked the third, accounting for 11.68%, followed by food and beverage industry (9.22%), furniture manufacturing (8.92%) and plastic products (8.70%). In the same year, China's light industry export value growth on a year-on-year basis decreased by 4.74 percentage points. Light industry machinery export value saw the largest decline of 23.88 percentage points than the previous year. Metal products, leather and fur manufacturing encountered a small yearly decrease than the previous year.
Figure9-5 Export value statistics of China's light industry major industries in 2007-2008 Unit: US$ 100 million, %
Item
|
2007
|
2008
|
Export
Value
|
Proportion
|
Year-on-
year growth
|
Export
Value
|
Proportion
|
Year-on-
year growth
|
Total of Light industry
|
2702.62
|
100
|
19.22
|
3092.29
|
100
|
14.48
|
Food and beverage
|
255.05
|
9.44
|
13.63
|
285.24
|
9.22
|
11.84
|
Plastic products
|
232.99
|
8.62
|
14.86
|
269.14
|
8.70
|
15.52
|
Furniture
|
226.20
|
8.37
|
29.50
|
275.83
|
8.92
|
21.94
|
Household appliance
|
317.71
|
11.76
|
26.77
|
361.10
|
11.68
|
13.66
|
Pulp and paper making products
|
59.18
|
2.19
|
19.22
|
63.80
|
2.06
|
7.90
|
Light industry machinery
|
16.53
|
0.61
|
51.75
|
21.13
|
0.68
|
27.87
|
Metal products
|
218.25
|
8.08
|
20.94
|
236.49
|
7.65
|
8.41
|
Cultural, educational and sports goods
|
330.36
|
12.22
|
20.26
|
395.33
|
12.78
|
19.66
|
Daily chemicals
|
109.22
|
4.04
|
21.55
|
123.90
|
4.01
|
13.44
|
Arts and crafts
|
113.49
|
4.20
|
18.83
|
124.13
|
4.01
|
9.38
|
Leather and fur products
|
385.47
|
14.26
|
10.52
|
425.46
|
13.76
|
10.37
|
Lighting Fixture manufacturing
|
135.29
|
5.01
|
25.78
|
163.25
|
5.28
|
20.67
|
Wood, bamboo, cane, palm fiber
and straw products
|
33.62
|
1.24
|
8.96
|
33.33
|
1.08
|
-0.86
|
Other industries
|
269.26
|
9.96
|
|
314.16
|
10.16
|
|
Source: China Customs Statistics
9.4.2 Features of China's Light Industry Going out
Household enterprises took the lead of China's light industry to go out, demonstrated by Haier Group, TCL Group, Changhong Group and Midea Group. Among all Chinese enterprises conducting international strategies, Qingdao Haier Group could be regarded the first of its kind. As early as in 1990s, Haier stepped out. It invested and set up factories overseas after 1998. Haier insists on strategies of "all things are difficult before they are easy" and "export to create a brand". It has stepped over more than 160 countries and regions and set up 30 manufacturing bases abroad. On April 30th, 1999 in Camden, a town with 8000 population located in the middle of South Carolina USA, American Haier Industrial Park invested by Haier with US$ 30 million held foundation stone laying ceremony. Over one year later, along with the first Haier refrigerator with a label Made in USA came up from good-looking production line, Haier created a history to make refrigerator in USA. Haier became the first enterprise who manufactured and sold products in USA. In European market, Haier chose multinational acquisition according to local laws, economic and cultural features. On June 19, 2001, Haier Group acquired an Italian refrigerator company and set up design centers in Lyons France and Amsterdam Netherland. With a marketing center in Milan, Haier built up a localized design, manufacturing and marketing chain of white household appliance. Learning from the rich experience of European countries to create brand in hundreds of years, Haier manufactured products to meet the strict requirements of European market for environmental protection and energy saving. On January 8th 2002, Haier set up comprehensive cooperation relationship with Sanyo Electric Japan. According to the cooperation agreement, Haier would gain support to enter Japanese market and promise to purchase Sanyo key parts to backup its sales in China. Haier constituted technology alliance with 12 large international companies successively such as Dutch Philips, German Mize, and Japanese Toshiba in order to develop a certain technology area. Thanks to these advantage complementary relationships, 18 Haier laboratories around the world obtain constant technology and production support, maintain an advanced world level and have a long lead on go-beyond technology products including 100HZ, large screen, networking and high definition.
Haier set foot in overseas stock market via acquisition and backdoor listing. In July 2001, Haire made use of CCT Multimedia, a Hong Kong listed company, and purchased mobile phone manufacturing and distributive trading from its parent company. After acquisition, the name was changed to Haier-CCT Holdings Limited; on January 28th 2005, Haier-CCT announced that Haier Group had finished investment plan to its subsidiary company and the company would be renamed as Haier Electronics Group Co., Ltd. It meant Haier Group built up a larger overseas financing platform.
Chapter 10 Relevant Policies and Regulations of China's Light Industry
Light industry policy is an important part of national economic plan and policy system. Correct policy formulation and implementation are preconditions to ensure the healthy development of light industry, proper allocation of light industry resources and to promote the modernization and rationalization of industrial structure and organization structure of enterprises so as to preferably carry out national guideline and policy to develop light industry.
10.1 Industrial Development Policies
10.1.1 Readjustment and Reviving Layout of Light Industry
On May 18th 2009, the State Council officially passed Readjustment and Reviving Layout of Light Industry, which proposed that during 2009 to 2011, the key for light industry readjustment and reviving relied in restructuring and industrial upgrading, as well as promoting energy-saving & emission-reduction and eliminate backward production capacity. As a significant industry in national economics, China’s light industry is important in terms of enriching market, increasing export, providing employment and serving agriculture, farmers and rural areas. Light industry plays a decisive role in economic and social development. This Layout is formulated as an comprehensive action plan to face the influence of international financial crisis, fulfill the general requirements of sustaining economic growth, boosting domestic demand and adjusting structure by the Party Central Committee and State Council, ensure the stable development of light industry, enhance structure adjustment, and promote industrial upgrading.
Guiding concept of the Layout: carry out the spirit of 17th National Congress of CPC in an all round way. Guided by Deng Xiaoping Theory and the important thought of the “Three Representatives”, we must carry out the scientific outlook on development, take comprehensive measures to expand urban and rural markets, consolidate and expand international market and maintain a stable development of light industry according the general requirements of sustaining economic growth, boosting domestic demand and adjusting structure; conduct technology reform, promote the building of self-owned brands, eliminated backward production, enhance light industry restructuring and industrial upgrading through enhancing independent innovation; develop new light industry of green ecology, quality safety and circular economy, and consolidate its pillar position to flourish market, provide employment and serve agriculture, farmers and rural areas.
Basic principles: boost domestic demand, stabilize international market; give priority to key industries, culture leading enterprises; support small and medium enterprises, promote employment; accelerate technology progress, eliminate backward production capacity; ensure product quality and enhance food safety.
Layout goals: keep a stable production growth, achieve results in independent innovation, optimize industrial structure, reduce pollutants remarkably, eliminate backward production capacity, and promote safety in an all round way.
Major tasks for industrial adjustment and revival: 1. foreign and domestic markets: stimulate domestic consumption, increase efficient supply, maintain and expand international market, and amplify foreign trading service system.2. Independent innovation capability: raise automation level of key facility, promote key technology innovation and industrialization, and provide good public service. 3. Conduct technology reform: raise the overall technology level of light industry, promote energy-saving and emission reduction among enterprises, and adjust production structure. 4. Special task on food processing safety: rectify food processing enterprises, clear food additives and illegal additives, improve supervision ability on food safety, raise food industry access threshold, and enhance the construction of credit system of food industry enterprises. 5. Build self-owned brands: support dominant brand enterprises to acquire and reorganize, reform technology, and build up innovation ability, promote industrial integration, increase industrial concentration and enhance brand enterprise power. Support the competitive domestic enterprises to go out and implement localized production, open up international market, expand production coverage, and improve brand influence. Improve certification and testing system, actively conduct exchanges and cooperation with major trading partner countries at various levels, raise the international society’s recognition of certification and testing results, and create self-owned brand internationally. Enhance self-owned brand protection, step up propaganda efforts, and raise the awareness and sense of responsibility of enterprises and society to protect famous self-owned brands. 6. Industrial transfer orderly: integrating optimized regional layout, encourage the areas with resource advantages to summarize and draw lessons from industrial cluster development, improve construction conditions and business environment, receive actively industrial transfer. 7. Production quality level: set up production quality security mechanism, speeding up in formulating industrial standards and revision. 8. Self-management of enterprises: increase legal awareness, enhance self-discipline of enterprise, improve enterprise quality in all round way, raise their awareness and sense of social responsibility to operate according to law. 9. Eliminate backward production capacity: build up industrial dropping out mechanism, make clear elimination standards, quantify elimination index and intensify elimination efforts.
Policies and measures: increase home appliances subsidy program in rural areas. The government will further increase export tax rebates for certain products, adjust processing trade catalogue, solve agriculture stock problems, enhance technology innovation and reform, enhance financial support, support small and medium-sized enterprises, improve industrial policy guidance, encourage mergers and acquirements and exert association functions.
Layout implementation: relevant departments of the State Council shall formulate corresponding policies and measures as soon as possible according to the Layout division, enhance communications and collaborations to ensure the smooth implementation of the Layout. Each area shall combine local situation and make specific implementation programs according to the goals, tasks and policies and measures in the Layout and ensure practical results.
10.1.2 Paper Industry Development Policy
Paper industry is an important basic material industry closely related to national economic and social development. The consumption of paper and paper board is a sign to measure a nation’s modernization and civilization level. Paper industry bears the characteristics of intensive capital and technology, remarkable scale profits. With strong industrial linkage and large market capacity, it is a new growth point for national economic development and plays an important role in driving the industrial development of forestry, agriculture, printing, packaging, machine manufacturing etc. On October 15th 2007, National Development and Reform Commission proposed Paper Industry Development Policy. The Policy including 12 chapters: foreword, policy aims, industrial layout, fiber materials, technology and facilities, production structure, resource conservation, environmental protection, industry assess, investment and financing, paper consumption and others.
Paper industry policy aims: moderately control the construction of paper and paper board projects. By the year of 2010, increase paper and paper board production capacity of 26.50 million tons, eliminate outdated production capacity of 6.50 million tons, and make effective production capacity of 90 million tons. Decrease quantity of water intake for one ton of paper product to 80 m³ from 103 m³ in 2005, decrease combined average energy consumption (standard coal) to 1.10 ton from 1.38 ton in 2005, decrease total pollutant emissions(COD) to 1.40 million tons from 1.60 million tons in 2005. Establish a new paper industry development mode of resource conservation, environment friendly, harmonious development.
Paper industry layout: paper industry layout shall be adjusted from north to south to form a new rational industry layout. The south of Yangtze River is a key area for paper industry development, which focuses on building up integration project of forestry and paper and accelerate the development of pulp and paper making industry. The southeast coastal area is a key area for building up integration projest of forestry and paper; the middle and lower reaches of the Yangtze river shall bring the initiative of existing key enterprises, speed up in culturing or introducing construction subject of forestry and paper integration project, and develop gradually into a key are of this project; the southwest area shall make a rational use of wood and bamboo resources and turn resource advantage into economic advantage, pay attention to both wood pulp and bamboo pulp; Yangtze River Delta and Pearl River Delta shall take account of making paper with wood pulp and waste paper at home and abroad. In principle local wood pulp projects in these two areas are not arranged.
The north of Yangtze River is optimal adjustment region of paper industry. Material structure adjustment, enterprise number reduction and enhancing production concentration attach great importance. Huang-huai-hai region shall eliminate outdated straw pulp production capacity, increase the usage of commercial wood pulp and waste paper, moderately develop integration of foresty and paper, control paper pulp project with large water consumption, accelerate regional industry upgrading, ensure to develop paper industry while not to increase or reduce water consumption and pollutant emission; the northeast area shall accelerate the construction of paper production base, promote enterprise reform, raise their competitiveness, while not to establish new pulp and paper making enterprise in principle; the northwest are shall accelerate the integration of paper industry and control production expansion via merger & acquisition and reorganization of leading enterprises.
Paper industry technology and facility: the R & D priorities of pulp and paper making are as follows: paper board machine technology and machine in set with annual output capacity above 300,000 tons; cultural paper machine with width of 6 meters, speed of 1200 meters/minute and annual output capacity above 100,000 tons; toilet paper technology and machine in set with width of 2.5 meters and speed of 600 meters/minute and above; chemical machinery pulp technology and equipment in set with annual output capacity of 100,000 tons which boasts high efficiency and low energy consumption; waste pulp technology and equipment in set with annual output capacity of 100,000 tons and above; R & D on new craft, technology and equipment of pulp and paper made without wood material, especially the development of recycle technology and equipment of straw alkali; technology and equipment of water conservation and energy-saving. On the basis of existing situation, paper industry shall promote independent innovation, form independent intellectual rights and realize set equipment localization as soon as possible.
Paper industry structure: support domestic enterprises to develop about 10 advanced pulp and paper enterprises with annual output of 1 to 3 million tons, and develop a certain number of multi-regional, cross-department, and cross-ownership large and competitive pulp and paper making enterprise groups with annual output capacity of 3 million tons via M & A, alliance, reorganization and extension. Raise industrial concentration level. By the year of 2010, paper and paper board total output of top 30 pulp and paper making enterprises shall account for 40%, rather than 32% nowadays, of the total output.
Paper industry access: domestic investment subjects entering paper industry shall have advanced technology, a great amount of capital, rich management experience and high credit. Enterprise asset-liability ratio is smaller than 70%. Bank credit is above AA class. Paper industry development shall realize scale economy and stress starting size. The single production line of newly built or extended pulp making project shall meet the following standards: annual output of chemical pulp reaches 300,000 tons, annual output of chemical machinery pulp reaches 100,000 tons, annual output of chemical bamboo pulp reaches 100,000 tons, and annual non-pulp output reaches 50,000 tons. The single production line of newly built or extended paper making project shall meet the following standards: annual output of newsprint reaches 300,000 tons, annual output of cultural paper reaches 100,000 tons, annual output of linerboard and white board reaches 300,000 tons, and annual output of other board projects reaches 100,000 tons. Tissue paper, specialty paper, board project and upgrading of existing production line are beyond scale access conditions.
10.1.3 Industrial Policy for the Dairy Products Industry
Dairy products industry is one of the industries with the fastest growth speed since China’s dairy industry entering new era. The development of dairy products industry is a great drive force to enrich urban and rural markets, improve dietary structure of residents, improve the national physique, optimize agricultural industry structure, increase farmer’s incomes and promote the building of new socialist countryside. On May 29th 2008, the National Development and Reform Commission issued Industrial Policy for the Dairy Products Industry. The Policy includes 12 chapters in total: foreword, policy aim, industry layout, industry access, raw milk provision, technology and equipment, investment and financing, production structure, quality security, organization structure, resource conservation, environmental protection, dairy products consumption and others. The main content is as follows:
Policy aims: by 2012, China’s average milk possession per capita will reach 42 kilograms. By 2010, dairy products output will reach 23.50 million tons. Among which, dry dairy production will reach 3 million tons; liquid dairy products production will reach 20.5 million tons. By 2012, dairy production will reach 28 million tons, of which dry milk production will reach 3.5 million tons, while emulsified production will reach 24.5 million tons.
Dairy industry layout are: the layout of the dairy industry should give full play to the resources of the traditional dominant regions, adjust and optimize the layout of key producing areas in the northeast, north, northwest of China. Hasten the elimination of the capacity with irrational layout, small scale, and backward technology; the South area, based on the actual local conditions, shall gradually expand the scale of the dairy industry; suburbs of big cities shall peed up the pace of modernization of the dairy industry. A new pattern of the dairy industry shall be formed with distinctive characteristics, reasonable layout, and coordinated development.
Dairy industry access conditions: the enterprises to enter dairy industry, fulfill the requirements of "Dairy Processing Industry Access Conditions". The provisions different from the Conditions or new sly added provisions shall be subject to the Conditions.
Investors into the dairy industry must have a stable milk base, strong economic strength and anti-risk ability, rich management experience, good reputation and strong sense of social responsibility. They shall meet the following conditions: existing net assets are not less than two times of the capital required for the proposed dairy project. The total assets are not less than three times of total investment required for the proposed project. The rate of assets-liabilities shall not exceed 70%. They must make profits for three consecutive years; lending credit rating assessment by financial institutions at the provincial level or above the provincial level shall achieve AA level and above; they must have a good social image and abide by law.
Dairy industry milk supply: Northeast dairy processing zones focus on the development of the large cow-breeders (family farm), standardized farming district, moderate size dairy farm, while build a number of high-standard modern dairy farm; North China dairy processing zones focus on the development of professional of farms and large-scale plot, expand the scale of breeding to improve intensity; South dairy processing zones focus on the development of milk and animal species adapted to the local climate characteristics, support the building of buffalo milk source base; Raw milk dairy base in processing zone in suburbs of big cities shall be constructed mainly towards scale and standard farming. Farm environmental governance attaches great importance.
Technology and equipment of dairy industry: stick to principle of combining introduction and independent research and development, encourage innovation, develop advanced and applicable technologies and equipment with our own intellectual property rights. Pay attention to the platform construction of national and corporate dairy technology and engineering research centers and key laboratories etc.; continue to carry out the key common dairy technology research, integration and demonstration; promote autonomization of dairy equipment, and improve dairy production technology and equipment manufacturing standards.
Dairy processing equipment research focuses on large-scale milk production equipment with daily processing capacity of 500 tons raw milk, low-temperature spray drying equipment, daily processing 100 tons of raw milk cheese production equipment, membrane filtration equipment, saving multi-effect equipment, cream separator, complete set of equipment sterilization and aseptic filling with daily processing capacity of 100 tons raw milk, complete set of milk whey processing equipment and pressing equipment, etc.. Research and develop methods and equipment of raw materials and finished products testing, on-line inspection during production process and non-destructive testing. By 2012, autonomization rate of complete sets of squeezed milk equipment, milk pre-treatment equipment, shall reach 85% or more while autonomization rate of sterile canning equipment shall reach 60% or more.
Investment and financing of dairy industry: The large-scale dairy enterprise groups with annual sales income of more than 2.0 billion should study and formulate long and middle term development programs based on the national dairy industry's industrial policy. Encourage mergers, acquisitions and restructuring among domestic dairy companies and equipment manufacturers. Foreign-invested enterprises who conduct above acts shall process in accordance with national laws and regulations on foreign investment regulations and the rules.
Dairy Quality Safety: establish strict security control system, strengthen inspection and quarantine of imported dairy products, ensure the safety of dairy products through overall control on raw milk production, acquisition, processing, marketing and other aspects and enhancing the quality and safety production license certification. Revise standards for raw milk purchase, some dairy product standards, formulate product standards of cheese, whey powder, cream products etc.. Establish a sound standard system for dairy products. Popularize mechanized milking and reduce pollution in the production chain. Strengthen the milk station management, accelerate the formulation of design standards of milking station and milk collection station and the operating procedures of milking, and milk collection. By 2012, mechanized milking rate of the main producing areas will reach 80% and more.
10.1.4 Implementing Measures on Pilot's Policy to Distribute Household Electrical Appliances
In December 2007, the Ministry of Commerce and the Ministry of Finance issued the Notice to Distribute Household Electrical Appliances to the Countryside on the Pilot's Policy to raise rural residents’ purchasing power on household appliance with government subsidies. Shandong, Henan and Sichuan are the pilots provinces with pilot products color TVs below 1500 yuan, refrigerators below 2000 yuan and mobile phones below 1000 yuan. In October 2008, the government included more provinces to conduct this policy including Inner Mongolia, Heilongjiang, Anhui, Hubei, Hunan, Guangxi, Chongqing and Shaanxi. Washing machine also became a pilot product. In accordance with the export tax rebates, the central and local governments give 13% of the sales price subsidies to farmers who buy pilot products, in order to activate the purchasing power of farmers to speed up the upgrading of rural consumption, and expand rural consumption and promote coordinated development of external demand and domestic demand. On December 31st 2008, the General Office of the State Council proposed Opinions of the General Office of the State Council on Invigorating Circulation and Expanding Consumption, which called for full promotion of household appliances to the countryside. From February 1st, 2009, the Policy is extended from 12 provinces (zones and cities) to the whole country. Meanwhile, home appliances such as motorcycles, computers, water heaters (including solar, gas, and electric heaters). Household Electrical Appliances to the Countryside play a role to activate the purchasing power of farmers to speed up the upgrading of rural consumption, and expand rural consumption and promote coordinated development of external demand and domestic demand and provide a foundation to the development of household appliance industry. to the countryside policies included in the scope of subsidies from the provinces (autonomous regions and municipalities) based on local needs to increase part of the subsidies varieties to choose from. In April 2009, the Ministry of Finance and the Ministry of Commerce and other ministries issued a notice "Detailed Rules and Regulations for Household Appliances to the Countryside" to ensure full implementation of the work of household appliances to the countryside into practice.
10.2 Market Supervision
10.2.1 Outlines of the Rectification and Revival of the Dairy Industry
On the first half of 2008, milk powder poisoning incident took place in some areas of China, which not only caused damage to health and life of infants and young children, but also brought negative impact on the social stability and national image. As a result, dairy development encountered serious difficulties and crises. Consumer confidence suffered a serious setback, dairy products market saw a downturn; enterprises suffered from overstocked productions, tight liquidity, and were trapped in cut-off, semi cut-off state; main cow milk producing areas saw widespread phenomenon of pouring the milk, people even slaughtered cows in individual regions, and the majority of farmers’ production enthusiasm received a heavy blow; national brand reputation was damaged, when a number of countries (regions) banned the import of Chinese dairy products. 13 government ministries and commissions including Reform Commission, Ministry of Agriculture, the Ministry of Industry and Information Technology, Ministry of Commerce, Ministry of Health, General Administration of Quality Supervision, Inspection, Business Administration, Ministry of Finance, People's Bank, China Banking Regulatory Commission, China Insurance Regulatory Commission, the Central Propaganda Department, Ministry of Supervision jointly formulated the "Milk reorganization and revitalization of the Plan"
In December 2008, 13 jointly formulated the Outlines of the Rectification and Revival of the Dairy Industry specifying the targets to rejuvenate the dairy industry in China. It aimed to achieve the following targets by October 2011: increase in the scale of milk cattle breeding operations; integration of production and sales; improvement in the processing flow; standardization of the industry; regulatory control over market competition and enhancement of the quality standard system. The outline set out revolutionary requirements on matters such as the ratio of first-class milk cattle, the average output per cattle and the scale of breeding farm operations. To date, milk consumption in China remains far below the international average consumption level, representing huge growth potential. On the back of strong support from the State and efforts of dairy enterprises, it is believed that China dairy products will continue to have promising growth prospects.
Goals:
1. To the end of 2008, take chance of disposing infant milk powder incident, conduct a comprehensive rectification and reform on dairy production, acquisition, processing, marketing and other areas, increase support efforts to enable all sectors basically return to normal state. 2. Before the end of October 2009, perfect relevant laws and regulations, improve the milk quality standards, promote technical regulations of fresh milk production, to enhance standardization construction and management at milk stations, promote dairy production enterprises to establish good manufacturing practices, so that the institutional development of dairy industry will take another important step towards institutionalized and standardized building. 3. Before the end of October 2011, achieve substantial progress in promoting large-scale breeding, production and marketing integration, processing and layout optimization, industry-wide standardization, as well as standardization of the market competition, improving the quality standard system etc.
Tasks and Measures:
1. Comprehensively strengthen the quality supervision, including improving quality standards system, strengthening inspection capacity-building, improving quality management system. Rebuild consumer confidence, including the timely disclosure of information, safeguarding consumer rights, universal knowledge of dairy products.
2. Speed up market recovery and development work, including making clear fund settlement on goods return and refund, and destruction ways of substandard products, ensuring market supply and maintaining the market order, and continuing to promote the School Milk Program.
3.Enhance the quality of dairy production enterprises in a all round way, including industry consolidation, maintaining a normal production, improving enterprise management level, and optimizing the industrial structure. Strengthen management of fresh milk purchase, including rectifying and standardizing the milk stations, raising access threshold of milk stations, and implementing standardized management.
4. Improve the breeding level, including the continued implementation of the relevant supporting policies, implementing interim relief policies for those dairy farmers who suffer particular difficulties in key areas, and promoting large-scale, standardized breeding.
5. Promote the industrialization of operations, including vigorously developing professional production cooperative organizations of dairy farmers, establishing a rational interests linking mechanism, and standardizing the fresh milk transactions.
Responsibility and assessment:
Make clear responsibility and labor division, including definiting responsibility of market players, and strengthening responsibility of local government who conscientiously fulfill the functions of the departments. Strengthen the implementation and evaluation of the outlines. From the year of 2009, all regions and relevant departments shall review and evaluate systematically the outline implementation every six months, and submit the results to China's Reform and Development Commission, who collects all information and reports to the State Council. Each year, the Ministry of Supervision in conjunction with relevant departments shall inspect and evaluate the outline implementation in all regions and relevant departments.
10.2.2 Notice on Restricting the Production, Sale and Use of Plastic Shopping Bags
The State Council issued Notice on Restricting the Production, Sale and Use of Plastic Shopping Bags. Starting from June 1, 2008, there was a ban on the production, sale and use of plastic shopping bags less than 0.025 mm in thickness (hereinafter referred to as ultrathin plastic shopping bags) within the area of this country. With a view to guiding the masses to use plastic shopping bags reasonably and economically, all commodities retail places in this Municipality such as supermarkets, shopping malls, fairs and marketplaces shall practice the paid use of plastic shopping bags from June 1, 2008. No free plastic shopping bags shall be provided at any commodities retail places, and the price of plastic shopping bags shall be clearly marked and charged separately from the commodity price. The price of plastic shopping bags shall not be included in the total value of commodities and charged together. The implementation of the Notice directly gave result to the closure, settlement of accounts and declaration of overall transfer of Henan Huaqiang Plastic Co., Ltd., the largest plastic bags production enterprise in China who generated an annual output value of 2.2 billion yuan and topped in the same industry in scale for 11 consecutive years. 60,000 plastics production enterprises in China will meet new challenges.
10.3 Trade and Investment
10.3.1 Measures for Overseas Investment Management
Ministry of Commerce of China decided to implement Measures for Overseas Investment Management from May 1st 2009. Compared with the former regulations, these Measures only kept approval rights of Ministry of Commerce for a few key overseas investments. Meanwhile, the approval process is greatly simplified. The term “overseas investment” as mentioned in these Measures means that an enterprise legally established in China (hereinafter referred to as the “enterprise”) sets up a new non-financial enterprise overseas or acquires the right to own, control or manage an existing non-financial enterprise overseas in the way of merger or acquisition.
With this approach, enterprises to develop foreign investment in the following circumstances shall report to the Ministry of Commerce for approval: overseas investments in countries with no diplomatic relations with China; overseas investment in specific countries or regions; Chinese foreign investment of US$ 100 million dollars and above; overseas investment involving the interests of multi-country (regions); investment to establish overseas companies for special purposes.
At the same time, overseas investment as follows shall be reported to the provincial commerce department for approval: overseas investment by local enterprises to develop the Chinese investment from US$ 10 million dollars to US$ 100 million dollars; overseas investment in energy, mineral resources; investment required for domestic investors.
The measures stipulated that the Ministry of Commerce to retain only a small number of major overseas investment approval authority. According to the cases number of approval in the previous year, 85% of overseas investment approval is estimated to be transferred to provincial competent commerce departments.
Meanwhile, the Measures by the Ministry of Commerce simplify the approval procedures. Most of foreign-invested enterprises only need to submit an application form and obtain an Approval Certificate of the People's Republic of China to Invest Abroad in 3 working days.
10.3.2 Foreign Investment Industrial Guidance Catalogue
The Ministry of Commerce promulgated Foreign Investment Industrial Guidance Catalogue on December 1st 2007, indicating clearly the catalogue of industries in which foreign investment is encouraged. The main catalogue of foreign investment to light industry is as follows:
Do'stlaringiz bilan baham: |