EMPLOYMENT CHILL: A large job fair was held at the National Agriculture Exhibition Center on February 25 in Beijing. The frigid employment landscape has promoted the government to take stronger measures to help job seekers (GONG LEI)

Trade Freedom

The China-Peru Free Trade Agreement (FTA) officially took effect on March 1, China's Ministry of Commerce announced.

"The pact is a comprehensive deal and features a high degree of openness. It would further promote bilateral economic development and friendly cooperation," the ministry said.

Under the FTA, 90 percent of goods would be tariff-free in several phases, ranging from China's light industry and electronic, automobile, chemical and machinery products to Peru's fish powder, fruits and minerals.

The FTA is China's second with a Latin American country, after one signed with Chile in 2005.

Electric Vehicle JV

The Chinese battery and electric car maker BYD Automobile Co. Ltd. will join hands with German Daimler AG to jointly develop electric vehicles and related spare parts in China.

The two firms have signed a memorandum of understanding, which includes a joint venture for technical research on electric cars, transmission systems, spare parts and batteries. They will initially launch a new jointly owned brand for the Chinese market.

Both companies believe zero-emission environmentally friendly vehicles will drive the global automotive industry, said BYD in a statement.

"Strong auto sales in China will provide opportunities for mid-size and small passenger cars, especially electric cars," the statement added.

Cross-Strait Appliances

Five Taiwan home appliance manufacturers have entered this year's list of suppliers whose products are eligible for a government program that subsidizes rural purchases of appliances, said Fan Liqing, a spokeswoman for the Taiwan Affairs Office of the State Council, at a recent press conference.

It was the first time for LCD TV panel maker CMO to enter the list, and the second time for ASUSTek, Acer, Sakura and Top Victory Electronics. They sold about 47,000 products worth 108.6 million yuan ($15.9 million) under the program in 2009, according to Fan.

Joining Hands in the Air

Air China Ltd. and Cathay Pacific Airways Ltd. of Hong Kong recently signed a framework agreement to establish a jointly owned cargo airline.

The two companies will use an existing cargo carrier, Air China Cargo Co. Ltd (ACC), a wholly owned subsidiary of Air China, as the platform for the joint venture.

Air China will hold 51 percent equity in the venture while Cathay Pacific will acquire a 25-percent interest directly in ACC and fund an offshore trust, in the form of a loan, to hold another 24-percent stake.

ACC is scheduled to commence operations as a joint venture airline in the summer of 2010, with Beijing and Shanghai as its principal operating bases.

R&D in Turkey

Shenzhen-based Huawei Technologies Co. Ltd., a leading telecom solutions provider, on February 27 opened a research and development (R&D) center in Istanbul, Turkey.

The center will involve an investment of more than $50 million, according to Jiang Yafei, Vice President of Huawei.

"We will become a strong team full of innovative spirit through the R&D center in Turkey, and grow towards a successful future in the global telecom industry," said Jiang.

Huawei started operations in Turkey in 2002 and now owns 15 R&D centers all over the world.