BRIDGING JIANGXI: Construction of the Nanchang-Jiujiang Intercity Railway in Jiangxi Province was officially completed on January 4. The railway is expected to be operational on June 30, 2010. With a designed speed of 250 km per hour, the railway will shorten travel time between the two cities from two hours to about 40 minutes (HU GUOLIN)

Resort Island

South China's Hainan Province is expected to become a top international tourism destination by 2020, according to a State Council proposal on developing the island that was released on January 4.

The country will introduce international sports and entertainment activities and explore ways to promote the local lottery and entertainment industries. The Hainan-based newspaper The Securities Herald reported in December 2009 that the province may become a pilot project for the introduction of gaming operations, including horse racing.

To attract international travelers, the Chinese Government will expand Hainan's visa-free policy for 21 countries to another five—Finland, Denmark, Norway, Ukraine and Kazakhstan.

Oil Reserve Plan

China recently started construction of a new national petroleum reserve base in northwest Gansu Province.

The reserve base, located in Yongdeng County, Lanzhou City, has a capacity of 3 million cubic meters, said Xinhua News Agency.

Construction of the project will cost around 2.38 billion yuan ($350 million), and is expected to be completed and put into use in the first half of 2011.

This is the second national petroleum reserve in west China after a similar facility in Dushanzi, Xinjiang Uygur Autonomous Region. Both are part of China's second phase of its strategic oil stockpiling plan. The first four reserve bases are located in east coastal provinces.

The government also revealed a plan to build a strategic oil reserve base in Hainan Province.

Auto Recall

Chrysler Group China Sales Ltd. will recall 1,809 Wrangler 3.8L and Wrangler Unlimited 3.8L vehicles with a potential safety problem in the gearbox on the Chinese mainland as of February 10, said the General Administration of Quality Supervision, Inspection and Quarantine (GAQSIQ) on January 5.

The reminder system in the gearbox lacks an overheating warning function, which is likely to trigger potential glitches and fire risks as oil temperatures increase, threatening the safety of vehicle occupants, said the GAQSIQ.

The manufacturer will add the reminding function by upgrading the operation software for free.

The GAQSIQ said it would follow up the recall and make an evaluation on the effects after the remedial measures were taken.

Free Trade Forum

A forum for the China-ASEAN (Association of Southeast Asian Nations) Free Trade Area kicked off on January 7 in Nanning, capital of southwest China's Guangxi Zhuang Autonomous Region.

The two-day event to celebrate the establishment of the China-ASEAN Free Trade Area (CAFTA), which started operating on January 1, 2010, sought to explore closer trade and investment cooperation among the involved nations.

The CAFTA covers a population of 1.9 billion people and handles a $4.5-trillion trade volume. It is the world's largest FTA for developing countries, the third largest FTA after the North American Free Trade Area and the European Union. The average tariff on goods from ASEAN countries to China was cut to 0.1 percent from 9.8 percent.

Consumer Financing

The China Banking Regulatory Commission (CBRC) on January 6 approved the establishment of the country's first three consumer financing companies, which will be based in Shanghai, Beijing and Chengdu, Xinhua News Agency reported.

Bank of China, Bank of Beijing, and Bank of Chengdu are respective promoters of the three pilot consumer financing companies that are expected to offer loans to individuals to finance purchases of durable goods without taking deposits, said the report.

The CBRC in May 2009 issued a draft rule on the establishment of consumer financing firms in an attempt to further spur the country's domestic consumption.