TAPPING SOLAR ENERGY: Solar panels lay on the ground of the Qaidam Basin in northwest China's Qinghai Province (ZHANG HONGXIANG)

Forex Surplus

Chinese banks bought more foreign currency than they sold in February, data from the State Administration of Foreign Exchange showed on March 19.

This is the seventh consecutive month in which banks have reported such a surplus. However, the surplus in February was 37.5 percent lower than that in January, according to the nation's top foreign exchange (forex) regulator.

The banks approved for forex transactions in China purchased foreign currency worth 890.4 billion yuan ($145.97 billion) in February while selling foreign currency worth 610.8 billion yuan ($98.1 billion), creating a surplus of 279.6 billion yuan ($44.9 billion).

Forex transactions are a major cause of fluctuations in China's forex reserves. Surpluses may suggest pressure from trans-border capital inflow.

Tramcar Contracts

Chinese train manufacturer CNR Corp. has signed contracts with Ethiopia to provide 41 modern tramcars, marking the entry of Chinese tramcars into Africa, CNR said on March 17.

The tramcars will be customized for use in Ethiopia's capital of Addis Ababa, where the altitude is 2,400 meters and ultraviolet light is strong.

According to CNR, the tramcars are the world's most sunlight-resistant and will use special components in their glass, rubber, paint and cable materials. They can travel at a maximum of 70 km per hour.

CNR will deliver its first batch of tramcars to Ethiopia at the end of 2014.

CNR, one of the largest train makers in China, manufactures a range of products, from locomotives to high-speed trains, which have been widely used for the country's railway services.

Speeding Up

China will accelerate the construction of transport infrastructure to facilitate the country's rapid urbanization, according to a national plan released on March 16.

The 2014-20 urbanization plan unveiled by the State Council said regular railways will cover cities with more than 200,000 residents by 2020, and high-speed railways will connect those with above 500,000 residents.

Expressways will link cities with over 200,000 residents, according to the plan.

China also aims to expand its civil aviation network, covering about 90 percent of the total population.

The plan said efforts will be made to strengthen connectivity among city clusters and to improve transport services for small cities and towns.

Optimistic Outlook

U.S. companies in China remained optimistic about the business environment but would be more cautious in making investments due to rising costs and narrowing profit margins, a survey showed on March 19.

The survey, conducted by the American Chamber of Commerce in China (AmCham China), showed over 80 percent of the 365 respondents perceive China's investment environment as improving or staying the same.

Some 75 percent are optimistic or slightly optimistic about their business outlook in China in the next two years, according to the survey.

But despite the short-term optimism, the companies are increasingly cautious about future investments as growth in revenue and profits slowed.

"The survey reflects the current realities of operating in China and the associated uncertainty, but also the optimism and confidence among AmCham China members that the country's leadership is set on reform and that foreign business has an important role in China's future," said AmCham China Chairman Gregory Gilligan.