FACTORY REMOVAL: Workers tear down old, out-dated factory facilities at the former production base of Nantong Jiangshan Agrochemical & Chemicals Ltd., part of the company's efforts to bring fresh air for local residents (HUANG ZHE)

Nuclear Power JV

The China Guangdong Nuclear Power Group (CGNPC) inked an agreement on December 21 with EDF Group, a leading energy company in France, to build a joint-venture nuclear power plant in Taishan, Guangdong Province.

With registered capital of 16.74 billion yuan ($2.45 billion), the partnership will be the largest energy venture in China. CGNPC will hold a 70-percent stake in the venture, with the remainder owned by EDF. The nuclear power plant's two generators, each with a capacity of 1750 megawatts, will come into commercial use by the end of 2013 and 2014, respectively.

This deal marks a step forward in energy cooperation between the two countries and is expected to pave way for a deeper bilateral economic tie-up.

Outbound Investing Spree

China's Ministry of Commerce (MOFCOM) said on December 22 the country's direct investment in overseas markets from non-financial sectors is expected to top $42 billion for 2009.

Outbound direct investments (ODIs) include establishing overseas marketing networks and acquiring advanced technologies and assets from countries abroad.

The non-financial ODI in the first nine months stood at $32.87 billion, an increase of 0.5 percent from one year earlier, according to MOFCOM.

Analysts believe an increasing number of Chinese companies are seizing the opportunity to expand globally before rising commodity prices put their target assets out of reach.

Tripling Auto Production

The German auto giant Daimler A.G. will triple the production capacity of its Mercedes-Benz luxury cars at its Beijing joint venture amid skyrocketing local demand.

The capacity of Beijing Benz-Daimler Chrysler Automotive Co. Ltd. (BBDC), a joint venture between Beijing Automotive Industry Holding Co. Ltd., Daimler AG and Daimler North East Asia Ltd., will be raised to between 75,000-100,000 units per year, depending on shifting patterns, said Ulrich Walker, CEO of Daimler Northeast Asia.

Walker estimated that Daimler will have soldmore than 70,000 cars, vans and trucks in China in 2009, a more than 50 percent increase over last year.

He added the company would introduce four or five new Mercedes models in 2010 and expand dealerships from 141 to 180.

CIC Capital Injection

Sovereign wealth fund China Investment Corp. (CIC) may receive another $200 billion capital injection by the first quarter of next year, China Daily reported. The fund was set up in 2007 to manage the country's swelling foreign exchange reserves.

A team of financial experts from the Ministry of Finance, the State Administration of Foreign Exchange and the People's Bank of China are working on the modalities of the capital injection.

In one of its latest moves, CIC announced plans to pay $850 million for a 14.5-percent stake in the Noble Group Ltd., a Hong Kong-based trading firm listed in Singapore.

China-Myanmar Oil Pipeline

China National Petroleum Corp. (CNPC), the country's biggest oil and gas producer, announced on December 21 that it signed an agreement with Myanmar's Energy Ministry for exclusive rights to build and operate the China-Myanmar crude oil pipeline.

The deal granted operating concession of the pipeline to the South-East Asia Crude Oil Pipeline Ltd. controlled by CNPC, which will also enjoy tax concessions and customs clearance rights.

The 771-km pipeline, extending from Maday Island, in western Myanmar, to Ruili, in the southwestern Chinese province of Yunnan, is expected to carry 12 million tonnes of oil a year, according to a report by Xinhua News Agency.